BCM increases its staff wages by 7%

Thousands of Buffalo City Metro workers will receive a 7% salary increase in the current financial year after the council approved the increase at a council meeting on Wednesday.

The new agreement comes after the South African Local Government Bargaining Council, together with the South African Municipal Workers’ Union (Samwu) and the Independent Municipal Allied Trade Union (Imatu), signed a three-year collective agreement on salaries and wages for the current financial year until 2021.

The agreement was signed on August 15, effective from July 1.

In a report tabled before council on Wednesday, city manager Andile Sihlahla said: “In respect of this financial year, all employees covered by this agreement shall receive an increase of 7% with effect from July 1 2018. Employees who earn a basic salary of R9,000 or less shall receive a further increase of 0,5% with effect from October 1 2018 based on the salaries of the employees as at September 30 2018.”

He said the minimum wage payable in the sector would be R7,324.24 with effect from July 1 this year.

“With effect from January 1 2019, the minimum wage payable in the sector shall increase by a further 0,5%, calculated on the salaries of the employees as at December 31 2018 to R7,360.86. The flat rate home owners allowance of R796.61 shall increase for the 2018-2019 financial year with effect from July 1 2018 by the same percentage as the salary and wage increase for the 2018-2019 financial year to R852.37,” Sihlahla said.

While there was no objection from political parties in council concerning the hike, the biggest union in the metro, Samwu, told the Daily Dispatch they were unhappy with the 7% hike as they wanted 15%.

Samwu regional secretary Zolani Ndlela said: “We wanted 15%.The deal does not meet the economic challenges we are confronted with as workers. The metro has doubled rates, water has gone up. The housing allowance of R852 is a drop in the ocean. This same government increased the value added tax, petrol is increasing every month, taxi fares have also gone up; we are dealing with a lot,” Ndlela said.