Social unrest warning for South Africa
SAMWU has warned National Treasury to back down from its order to end a R10.3 billion agreement between the City of Joburg and workers, threatening to fight any attempts to do so.
The South African Municipal Workers’ Union (SAMWU) issued a fiery statement on Wednesday (6 May), following wide circulation of a letter from Finance Minister Godongwana to Mayor Dada Morero.
In the letter, the Finance Minister stated in no uncertain terms that the city was in deep financial distress and that the executive had engaged in illegal activity.
This was most apparent in the R10.3 billion “politically facilitated agreement” (PFA) with public servants, which would see salaries hiked over three years.
Godongwana described the agreement as illegal and directed the city to immediately end this agreement, as it is clear and known by the city that it simply cannot afford it.
“You are hereby directed to stop proceeding with the implementation of this illegally signed agreement that has the potential to destroy the sustainability of the City of Johannesburg,” Godongwana wrote.
“You very well know this city can’t afford this agreement.”
However, SAMWU said that the minister has no right to interfere with the agreement, and that the agreement remains binding until a court of law says otherwise.
“The PFA is not an illegal agreement…it is the outcome of a long process of engagement aimed at addressing historical wage disparities suffered by workers in the City of Johannesburg over many years,” it said.
“Workers did not arrive at this point overnight. They pursued every available institutional avenue, engaged in negotiations and demonstrated patience while waiting for justice and fairness to prevail.”
The union said that, in terms of its constitutional and legal framework, only a court of law can set aside a legally concluded agreement.
“Treasury, therefore, has no authority to unilaterally declare the agreement unlawful and instruct the City not to proceed with implementation,” it said.
“Such conduct amounts to unlawful interference in collective bargaining and undermines established labour relations processes.”
Unrest on the cards
The union characterised the letter to Morero as an attack on workers, which will only serve to “rejuvenate workers’ determination to intensify the struggle”.
“We will organise; We will mobilise; We will fight,” it said, alluding to further action, should the city proceed to renege on the PFA.
It urged the city “to remain firm and proceed with the implementation of the PFA without retreat or delay.”
However, it warned that “workers are no longer prepared to quietly accept delays, reversals and interference in agreements that directly affect their livelihoods and families”.
“SAMWU Gauteng will not fold its arms while workers’ gains are under attack and will continue to defend the interests of municipal workers at all material times.”
As tensions rise over the letter and the order to cease the PFA, the mayor has attempted to gloss over the stakes.
In a statement following reports about the letter, Morero said that residents need not panic over a letter, assuring that the city is “fully operational”.
He also said that his office “continues to exercise effective oversight and control over the municipality’s financial and governance responsibilities”.
“The Executive Mayor assures residents, stakeholders, investors, and the broader public that there is no cause for concern,” he said.
The mayor said he is engaging with the Minister of Finance over the letter and the issues raised, and is confident that the city will provide “satisfactory responses”.
Meanwhile, Morero’s political opponents are circling, describing the city’s finances as bankrupt and in a state of collapse.
The 2025/26 adjustments to the city’s budget are unfunded, with revenue targets overstated and actual expenditure understated.
The City owes its creditors R25.2 billion but has only R3.9 billion in cash, leaving it effectively bankrupt and at risk of being placed into administration.
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