LETTER: System is not working

The SA Municipal Workers Union, SA Local Government Association and SA Local Government Bargaining Council have declared their pleasure at the outcome of wage talks that awarded everyone working in municipalities a 3.5% increase in salary plus a few one-off cash awards as sweeteners.

The only dissenting voice came from the Independent Municipal & Allied Workers Union, presumably because it wanted more fruit from the magic money tree. 

The negotiations to arrive at this wage agreement took more than six months. Those who will pay for it — the millions of ratepayers already paying through the nose to meet the demands of those lucky enough to be employed by municipalities — were not in attendance, and were largely ignored.

Their absence makes the way in which municipal wage and salary rates are arrived at bizarre, to say the least. It appears to take place without the input of economic realities. Instead it appears to be an exercise in deciding how best to raid the purses of those who generate money, to give it to those who don’t.

This unreal situation brings the prospect of a rates revolt closer because, as night follows day, the inevitable result will be yet another increase in rates and service charges imposed on the productive section of the population — homeowners and the private business sector. The system is not working.

Jacques Moolman 
President, Cape Chamber of Commerce & Industry

JOIN THE DISCUSSION: Send us an email with your comments. Letters of more than 300 words will be edited for length. Send your letter by email to letters@businesslive.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.