COSATU (the Congress of South African Trade Unions) is ‘appalled to learn that many municipalities across the North West are still failing to pay workers their salaries on time.’
A COSATU statement on Monday said: ‘We call on these municipalities to pay workers what is due to them, or we will work with SAMWU (South African Municipal Workers Union) to take them to court.
‘Current delinquent municipalities in the North West are routinely defaulting on paying workers salaries, and third party deductions owed to them in the North West include Ditsobotla, Mahikeng, Tswaing, Ngaka Modiri Molema, Madibeng, JB Marks, Mamusa as well as Lekwa Tamame.
‘Over the past year alone, the number of delinquent municipalities defaulting on paying their employees has risen from 20 in four provinces to 27 in six provinces nationally.
‘These municipalities are failing workers who are already dealing with a cost-of-living crisis that has been made worse by the current economic trends that have unleashed very harsh conditions for workers.
‘The Federation (COSATU) is disturbed by the apathetic and indifferent attitude of both the national and North West Provincial government, in particular COGTA and SALGA if this still exists, on this matter.
‘The Federation has been calling on the government to come out with a turnaround strategy to revive about 90% of municipalities that have experienced financial distress for more than five years.
‘The Auditor-General has been warning that the accountability for financial and performance management continues to worsen in most municipalities.
‘Numerous reports show that many municipalities have been failing to account accurately for the financial transactions they have carried out and the money entrusted to them.
‘Many of these municipalities have previously been placed under administration with little tangible progress to show for it.
‘What is scandalous is that the National Treasury – which has the ethical responsibility to see to it that the public money is used for its designated purposes and spent within the guidelines of existing legislation across the state – has done little to arrest the deterioration.
‘They have refused to impose a moratorium on the use of consultants in municipalities despite these consultants costing municipalities millions each year.
‘The Federation fully supports the call by SAMWU for the provincial governments to intervene in these municipalities, as per their Constitutional requirements.
‘Although the national government does not control local government, it nevertheless has important powers. The national government bears the primary responsibility for national policy and legislation within which local government operates.
‘Fiscal policy determines the level of financial flows to local government. Under fiscal austerity transfers to local government have declined.
‘We agree with SAMWU that a new funding model is needed to halt the rapid slide and collapse of local government, this needs to include fast tracking the role out of the District Development Model.
‘It is clear we cannot sustain many of the 259 municipalities, many of whom lack a sufficient rate base to sustain them.
‘The deterioration in basic services is causing many companies to close and retrench workers, therefore, creating rural economic wastelands.
‘In the past few years, total municipal debt nationally to Eskom has jumped from R40 billion to more than R60 billion with most of this owed by the 41 most distressed municipalities.
‘Equally scandalous are the billions of rands earmarked for infrastructure being returned by these mismanaged municipalities, in particular in the North West, to the Treasury because their leadership has no clue on how to spend money once the taps for looting have been closed.
‘This deterioration of municipalities confirms the fact that there is little control over the corrupt abuse and manipulation of tenders and procurement of goods and services.
‘We have consistently argued against the view that the tendering system and public-private partnerships are a panacea.
‘It is about time this issue of the tendering system is revisited and put on the table for discussion. Treasury needs to move with speed to table the Public Procurement Bill at Parliament to enable it to be passed into law before the 2024 elections.
‘Government needs to act now and intervene in this crisis across the North West.
‘COSATU will be working with SAMWU in these municipalities and in the Province to put pressure and compel the responsible Mayors, MECs and Premier to act and pay these municipal workers what is owed to them.
‘Such actions may include protests, pickets, the occupation of offices of these politicians and if needs be to take these municipalities to court to compel them to pay them what is owed to these workers.
- The Congress of the South African Trade Unions (COSATU) congratulates its affiliate, the South African Transport and Allied Workers Union (SATAWU), for the reinstatement of the 56 workers who were previously dismissed from Public Bonds Project, a company sub-contracted by Eskom at Matimba Power Station in Limpopo.
COSATU said: ‘This is a demonstration of the resilience and commitment of our affiliate in pushing back against unfair practices that employers continue to blatantly apply in a labour market that is meant to equally benefit both worker and employer.
‘These workers were victims of unscrupulous and underhanded processes by Eskom who, after the failure of Public Bonds Project to meet workers’ demands, intervened by replacing the company with another contractor.
‘Following engagements with the union, a mutual agreement was made that there wouldn’t be any retrenchments and that the workers would be fully absorbed by the companies who would take over the contract.
‘The new contractor did not adhere to this agreement and dismissed the workers. This alarming behaviour is unacceptable.
‘What is more alarming is the power-utility’s failure to intervene, directly supporting companies who have no regard for workers.
‘We commend SATAWU for defending their members until the very end.
‘The Federation will continue to support its affiliate in the fight for all labour brokers who are contracted by the power utility to be compelled to comply with the law by employing their workers on a permanent basis.
‘The Federation and SATAWU remain resolute in the call for all companies doing work at Eskom Matimba Power Station to be investigated following allegations that some of these companies who are sub-contractors at Eskom are owned by some power utility managers, including politicians.
‘This is a clear conflict of interest and greed.
‘COSATU will continue to support SATAWU in its further engagements with the power-utility.’