By Luvolwethu Ngani
City of Tshwane municipal workers are set to finally receive long-awaited backpay dating back to 2021, after trade unions representing employees reluctantly accepted a settlement agreement with the municipality.
The backpay relates to a 3.5% salary increase that had been agreed upon but was not implemented in 2022 due to the city’s financial constraints.
The deal, announced during a media briefing at Tshwane House on Thursday, 19 February, will see the outstanding payments distributed over three financial years. The municipality said settling the full amount upfront would have cost approximately R1.5 billion, but negotiations reduced the total payout to about R1 billion.
Trade unions had initially pushed for the increase to be paid in full, arguing that workers had been unfairly deprived of their rightful earnings.
“Not all our members are happy with this agreement, as the backpay excludes benefits and the once-off payment secured in 2021,” said IMATU regional chairperson Melita Baloyi.
SAMWU regional chairperson Lehlohonolo Maphatsoe also acknowledged dissatisfaction among some workers but defended the decision, citing the municipality’s financial position.
“We want to assure our members that this was the best possible option available under the circumstances,” Maphatsoe said.
The first tranche of the backdated payments is expected to be made at the start of next month, with the remaining amounts to follow in subsequent financial years. The phased approach is intended to ease pressure on the municipality’s strained finances while still addressing workers’ grievances.
The City of Tshwane has been grappling with persistent financial challenges, including budget shortfalls that have affected service delivery. Officials say the agreement represents a step toward stabilising labour relations and allowing the municipality to refocus on its core functions.
For many workers, the development offers long-awaited relief.
“It’s a positive step, though we had hoped for a lump-sum payment,” said one employee who asked to remain anonymous.
Municipal authorities say the payment plan forms part of broader efforts to restore financial stability, including cost-cutting measures and improved revenue collection. The first payment is expected early next month, pending final administrative processes.
