Tshwane mayor refutes DA claims about R1.6 billion back-pay liability

COULD FORCE SERVICE CUTE

- RAPULA MOATSHE [e-mail]

TSHWANE Mayor Nasiphi Moya has dismissed the DAs claims that residents and businesses could shoulder the cost of a potential R1.6 billion back-pay liability for municipal workers dating back to 2021.

The DA raised concerns that without a clear funding source, the payout - stemming from the South African Local Government Bargaining Council ruling in October - could force service cuts or rate hikes. The bargaining council dismissed the city’s application for exemption from the 3.5% salary increases agreement for the 2021/22 financial year and ordered the payment of up to R1.6bn in back-pay.

The ruling acknowledged that the 3.5% backdated pay hike’s financial impact is “very huge’, giving Tshwane six months to implement it.