Newcastle Municipality faces seven-day ultimatum from union over salary dispute

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Tensions are mounting within the Newcastle Municipality as the South African Municipal Workers Union (SAMWU) presses for their voices to be heard. The union is demanding that the Municipality address their concerns promptly or face further action.

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On Thursday, 8 August 2024, SAMWU, along with a significant number of its members employed by the Newcastle Municipality, organised a spirited march.

They paraded from Allen Street, through the CBD, to the Municipal offices located on Scott Street. The air was filled with the sight of placards and banners, all clearly visible as the union made their presence known.

Standing outside the Newcastle Municipal offices, the frustrated protesters watched as municipal officials and representatives from the KZN Department of Cooperative Governance and Traditional Affairs prepared to receive their memorandum. The scene was charged with a sense of urgency and determination.

Nhlanhla Mfusi from SAMWU explained that the demonstration was prompted by the Municipal staff’s failure to receive the salary increments that were agreed upon in the Salary and Wages Collective Agreement of 2021. According to Mfusi, while the necessary salary adjustments were made for the 2021 to 2022 period, these increases were abruptly halted in 2023.

The Newcastle Municipality had taken legal action to seek exemption from implementing these increases, which only intensified the union’s frustration.

As reported by Newcastillian News in April 2024, the Newcastle Municipality’s attempt to be exempt from implementing the required salary increases was unsuccessful. The arbitrator had advised that the Municipality should reduce its operating expenditure by cutting back on consultants, investing in employee training, hiring capable staff, addressing poor performance and misconduct, and eliminating waste and inefficiency.

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According to Mfusi, the issue is further aggravated by the Municipality’s recent outsourcing of work within its electricity and technical services departments, as well as the hiring of external security personnel despite already having an in-house security department. “There are also contractors being employed within the electrical department, which results in a doubling of staff and is wasting taxpayer money. This money could be better used for service delivery and to fulfil the salary increment owed to the staff,” Mfusi emphasised.

Mfusi also pointed out that the Newcastle Municipality had already budgeted for the salary and wage increases, and its sudden decision to withhold these funds was deeply concerning.

He added that SAMWU felt the Municipality’s Human Resources Department was failing its staff by not prioritising their needs and instead being used for political manoeuvring.

Determined to see justice for its members, SAMWU has given the Newcastle Municipality a seven-day deadline to respond to their memorandum. If the Municipality does not address the demands within this period, Mfusi assured SAMWU will escalate the matter to ensure that workers receive what they are rightfully owed.

As SAMWU prepares for possible further action, Mxolisi Dlamini of COSATU expressed strong support for the union. “As COSATU of Newcastle, we stand with SAMWU. We are committed to defending the municipal workers with all our resources. We demand that the Municipality pay the workers what they are due,” Dlamini stated.

He further emphasised that if the Newcastle Municipality fails to respond appropriately, SAMWU and COSATU will explore all possible avenues to ensure their demands are met and that the Municipality complies.

Furthermore, Newcastle Municipaliy’s Acting Municipal Manager, Dr Dumisani Thabethe accepted the memorandum on behalf of the Municipality from SAMWU, and a representative from KZN COGTA accepted it on behalf of MEC Reverend Thulasizwe Buthelezi. Thabete assured that the memorandum would be reviewed and addressed within the stipulated timeframe by the relevant municipal officials. The representative from KZN COGTA also assured that he would ensure the memorandum was handed over to the correct officials.

As the Newcastle Municipality now faces the challenge of responding to the memorandum and the looming threat of further action from SAMWU and COSATU, the community eagerly awaits the next developments. What are your thoughts on this unfolding situation? Share your views in the comment section below.

Comments 1

  1. Sunitha Paladh Shaikh says:

    Wow. Salary increases, fired employees, re-employed with back dated salaries, now machinery worth millions bit we told Newcastle municipality don’t have money hence our town is dirty. I would love to do a door to door to find out what is the monthly rates paid to the municipality and what services we receive for that.

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