The City of Johannesburg has announced a multibillion-rand salary agreement for an estimated 35,000 municipal workers, sparking concerns that workers are being used as "political pawns" in the lead-up to the local government elections. The agreement, linked to a settlement with the South African Municipal Workers' Union (Samwu), involves contemplated payments of between R1.2-billion and R5-billion. However, the City has not disclosed when the money will be paid, how much remains outstanding, or where the funds will come from.
The agreement has been criticized by Johannesburg civic organisation JoburgCAN, which warned that the financially distressed municipality cannot make commitments that would burden the incoming administration or further compromise service delivery. JoburgCAN managing director Julia Fish said workers deserved the salary adjustments, but the agreement needed to form part of a properly considered and consultative budget process. Fish also raised concerns about contractors and small businesses waiting for payment from the City and the consequences of those delays for working-class families.
The original settlement involved approximately R10.3-billion, with payments scheduled through July 2027. According to Samwu regional secretary Thobani Nkosi, only R1.2-billion had been paid by late October, while another R5.2-billion had been due in July. Fish warned that the manner in which the latest addendum had been concluded could also jeopardise its implementation, citing Finance Minister Enoch Godongwana's warning that he would intervene if councils approved unfunded budgets or followed processes that contravened the Municipal Finance Management Act.
Johannesburg Crisis Alliance (JCA) coordinator Yunus Chamda cautioned against placing workers and residents in opposition to one another, saying workers had a right to receive what was lawfully due to them, while residents had a right to reliable municipal services and responsible management of public funds. Chamda said the agreement must be accompanied by a credible, transparent and affordable funding plan protecting essential services and infrastructure investment.
The agreement comes despite a warning from Finance Minister Enoch Godongwana in April that Johannesburg was in severe financial distress. In a letter to Mayor Dada Morero, Godongwana instructed the City to halt implementation of the salary agreement, describing it as unfunded and warning that it threatened the municipality's financial sustainability. He revealed that Johannesburg owed creditors R25.2-billion against cash and cash equivalents of just R3.9-billion in the 2024/25 financial year.
For residents already battling prolonged water outages, electricity failures, potholes and deteriorating infrastructure, the concern is that additional salary commitments could further squeeze funding for essential repairs and maintenance. Johannesburg's 2026/27 budget provides for R88.3-billion in operating expenditure and R8.8-billion in capital expenditure, with a R5-billion payment equivalent to more than half the City's annual capital budget.
Samwu maintains that the salary adjustments are long overdue and are intended to correct historical disparities dating back to the amalgamation of Johannesburg's local authorities. The union's regional secretary, Thobani Nkosi, emphasized that workers should not be treated as political pawns on the eve of an election, and that the City had an obligation to uphold the rights of both workers and residents.
Key points
- - City of Johannesburg announces multibillion-rand salary agreement for 35,000 municipal workers hours before local government elections - Agreement criticized for lack of transparency and potential impact on municipal finances and service delivery - Workers' union argues that salary adjustments are long overdue and intended to correct historical disparities
