{"id":859677,"date":"2026-05-07T12:00:00","date_gmt":"2026-05-07T10:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=859677"},"modified":"2026-05-07T11:38:12","modified_gmt":"2026-05-07T09:38:12","slug":"social-unrest-warning-for-south-africa-9","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/859677\/social-unrest-warning-for-south-africa-9\/","title":{"rendered":"Social unrest warning for South Africa"},"content":{"rendered":"\n<p>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.<\/p>\n\n\n\n<p>The South African Municipal Workers&#8217; Union (SAMWU) issued a fiery statement on Wednesday (6 May), following wide circulation of a letter from Finance Minister Godongwana to Mayor Dada Morero.<\/p>\n\n\n\n<p>In the letter, the Finance Minister stated in no uncertain terms that <a href=\"https:\/\/businesstech.co.za\/news\/trending\/859600\/godongwana-threatens-to-cut-off-south-africas-richest-city\/\"><strong>the city was in deep financial distress and that the executive had engaged in illegal activity.<\/strong><\/a><\/p>\n\n\n\n<p>This was most apparent in the R10.3 billion \u201cpolitically facilitated agreement\u201d (PFA) with public servants, which would see salaries hiked over three years.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>\u201cYou 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,\u201d Godongwana wrote.<\/p>\n\n\n\n<p>\u201cYou very well know this city can\u2019t afford this agreement.\u201d<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>&#8220;The PFA is not an illegal agreement&#8230;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,&#8221; it said. <\/p>\n\n\n\n<p>&#8220;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.&#8221;<\/p>\n\n\n\n<p>The union said that, in terms of its constitutional and legal framework, only a court of law can set aside a legally concluded agreement. <\/p>\n\n\n\n<p>&#8220;Treasury, therefore, has no authority to unilaterally declare the agreement unlawful and instruct the City not to proceed with implementation,&#8221; it said.<\/p>\n\n\n\n<p>&#8220;Such conduct amounts to unlawful interference in collective bargaining and undermines established labour relations processes.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Unrest on the cards<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/05\/SAMWU.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/05\/SAMWU-1024x576.jpg\" alt=\"\" class=\"wp-image-859720\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/05\/SAMWU-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/05\/SAMWU-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/05\/SAMWU-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/05\/SAMWU-1536x864.jpg 1536w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/05\/SAMWU.jpg 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>The union characterised the letter to Morero as an attack on workers, which will only serve to &#8220;rejuvenate workers\u2019 determination to intensify the struggle&#8221;.<\/p>\n\n\n\n<p>&#8220;We will organise; We will mobilise; We will fight,&#8221; it said, alluding to further action, should the city proceed to renege on the PFA.<\/p>\n\n\n\n<p>It urged the city &#8220;to remain firm and proceed with the implementation of the PFA without retreat or delay.&#8221;<\/p>\n\n\n\n<p>However, it warned that &#8220;workers are no longer prepared to quietly accept delays, reversals and interference in agreements that directly affect their livelihoods and families&#8221;.<\/p>\n\n\n\n<p>&#8220;SAMWU Gauteng will not fold its arms while workers\u2019 gains are under attack and will continue to defend the interests of municipal workers at all material times.&#8221;<\/p>\n\n\n\n<p>As tensions rise over the letter and the order to cease the PFA, the mayor has attempted to gloss over the stakes.<\/p>\n\n\n\n<p>In a statement following reports about the letter, Morero said that residents need not panic over a letter, assuring that the city is &#8220;fully operational&#8221;.<\/p>\n\n\n\n<p>He also said that his office &#8220;continues to exercise effective oversight and control over the municipality\u2019s financial and governance responsibilities&#8221;.<\/p>\n\n\n\n<p>&#8220;The Executive Mayor assures residents, stakeholders, investors, and the broader public that there is no cause for concern,&#8221; he said.<\/p>\n\n\n\n<p>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 &#8220;satisfactory responses&#8221;.<\/p>\n\n\n\n<p>Meanwhile, Morero&#8217;s political opponents are circling, describing the city&#8217;s finances as bankrupt and in a state of collapse.<\/p>\n\n\n\n<p>The 2025\/26 adjustments to the city&#8217;s budget are unfunded, with revenue targets overstated and actual expenditure understated.<\/p>\n\n\n\n<p>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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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.<\/p>\n","protected":false},"author":10,"featured_media":859717,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[4280,10062],"class_list":["post-859677","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-city-of-joburg","tag-samwu"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/859677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=859677"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/859677\/revisions"}],"predecessor-version":[{"id":859722,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/859677\/revisions\/859722"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/859717"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=859677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=859677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=859677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}