The two recognised unions in the local government sector would have wanted a bigger wage increase, but were forced to compromise due to the negative economic climate and the Covid-19 pandemic in a deal that is largely viewed as favourable to the employer.

In the wage hike agreement, unions unexpectedly agreed to many proposals that they had previously opposed, such as a multiyear agreement instead of the one-year deal they had sought, a freeze on some benefits and a window for parties to opt out of the agreement...