Samwu threatens strike action amid R10bn Joburg wage deal impasse

Samwu in Joburg has not ruled out the possibility of strike action by its 23,000 members as tensions escalate over the city’s proposed R10.3bn wage deal.

The union said it is meeting with its members next week to map a way forward and that the withdrawal of services by workers was also on the table.

This move follows a decision by finance minister Enoch Godongwana to halt the implementation of the deal, deeming it unsustainable and a threat to the city’s financial stability. He also threatened to withhold grant funding if the city fails to fix its financial management, which includes R25.2bn owed to creditors.

Samwu regional leader Lebogang Ndawo said the minister’s decision undermines the workers and the courts.

“As a union, we don’t believe the deal has been halted. He [Godongwana] might have written a letter, but that letter does not carry the weight of a court order. He’s acting beyond his powers. That’s why we’re saying the letter itself exceeds the authority he’s been granted, because it undermines labour bargaining and collective agreements, which is not his scope,” he said.

“The city’s wage bill is about 20% of the budget. We are far from the issue of budgets.”

Ndawo said the union will be meeting with members to discuss a way forward but did not rule out industrial action. He did not want to elaborate on when the protest would be and what shape it would take.

The protest could lead to a collapse in service delivery and cause a political headache for the ANC ahead of the local government elections in November.

Meanwhile, Joburg mayor Dada Morero has called for calm.

On Thursday night he told Sowetan he has met with the Auditor-General to discuss the matter and is expecting to meet with Godongwana on Friday morning for further talks.

“Post that meeting [with Godongwana] we will then be able to give you a fully informed report on the discussions that we had in relation to the letter,” Morero said.

“I want to assure residents, stakeholders, investors, and the broader public that there is no cause for concern.

“The city is confident it will provide satisfactory responses to the matters raised and remains steadfastly committed to transparency, accountability, and sound financial management in the best interests of the residents of Johannesburg.”

The wage deal was finalised in 2025 and consolidated this year to address long-standing wage disparities dating back years. The increases were meant to be paid in batches starting this year.

Workers in the city said they were under financial distress and that the extra money would help alleviate their plight.

Nthando*, a Samwu member who has worked in administration for the city for 10 years, said the money would help alleviate the stress on his family.

“From my perspective, inflation is high, and the cost of living in Johannesburg isn’t like an ordinary city; it’s impossible to survive comfortably,” he said. “It’s been a very difficult period. I can’t pay tuition fees or send my kids to the schools I prefer. I can’t even afford my bond because I’m not paid enough. Personally, it’s caused me financial distress.”

Nthando earns R12,000 and is always worried about money come month end.

“After deductions, I’m left with little. I spend close to R2,400 on transport alone. The salary correction would enable us to live decently and afford basic necessities without stress. Right now, entering the next month financially stable is impossible.”

Meanwhile, Maria*, an emergency services worker who has worked in the city for 28 years and earns R40,000, said she has been waiting for the boost to her pay for a long time.

She said she wants to be able to take her teenage daughters out of the overcrowded schools they are in and provide them with a stable home.

“I am a single mom who cannot afford many things because I have to pay certain expenses. I pay for school fees, I pay for municipal bills and transport, and now petrol has gone up. It’s really hand-to-mouth,” she said.

“I want to be able to qualify for a house because right now I can’t even do that, and the situation in the family house is unstable. My job is uncertain; I can go to work today and not come back, and my children could be kicked out of the house.”