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Johannesburg being held hostage over R10 billion municipal workers deal
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Johannesburg Held Hostage by R10bn Workers Deal

Johannesburg faces a critical financial decision as a massive proposed wage agreement for municipal workers draws sharp criticism. The city must choose between funding this R10 billion union deal and addressing its severe water infrastructure crisis, a dilemma that threatens both public services and political stability....Click to Read More >>➤

The Democratic Alliance (DA) has publicly challenged the city’s priorities, claiming to possess a document outlining a multi-year financial commitment to the South African Municipal Workers’ Union (SAMWU). This deal reportedly proposes significant salary adjustments spread over the coming years.

According to the DA’s findings, the agreement includes initial increases between R1.2 billion and R2 billion by March 2026. A second tranche of R5 billion to R6 billion would follow by July 2026, with a final R4.1 billion allocated for workers by July 2027. This staggering R10 billion deal is currently under facilitation.

SAMWU’s Johannesburg Regional Secretary, Thobani Nkosi, confirmed ongoing negotiations aimed at resolving “salary disparities” within the municipality. He clarified that while the union has fought for pay parity, no money has been received yet. The R10 billion agreement remains in the facilitation process, not finalized.

Potential for G20 Summit Disruption

DA Johannesburg caucus leader Belinda Kayser-Echeozonjoku has raised a pressing concern. She alleges the deal is being fast-tracked to prevent SAMWU from disrupting the upcoming G20 summit, scheduled to start on 22 November. This potential protest threat adds a layer of urgency to the city’s negotiations.

When questioned, Nkosi did not rule out the possibility of industrial action. He stated that any decision to protest would depend entirely on the city’s commitment to implementing the R10 billion agreement. The mayor’s office and city officials did not respond to requests for comment on the deal or the alleged political motivations behind it.

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Water Crisis Takes a Back Seat

Kayser-Echeozonjoku sharply criticized the administration’s priorities. She questioned how Mayor Dada Morero could find billions for union demands while claiming a lack of funds for essential water infrastructure. Residents across Johannesburg have endured persistent water shortages and failing reservoirs, leading to their own widespread protests.

The DA leader described the water crisis as a direct result of poor financial management and misplaced priorities. She accused the mayor of attempting to save his political career by appeasing unions instead of ring-fencing funds for Joburg Water to fix decaying infrastructure. For desperate residents waiting for a reliable water supply, the proposed R10 billion union deal represents a profound misallocation of scarce public resources. The city’s choice will have lasting consequences for its financial health and service delivery. ...Click to Read More >>➤

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