City hit by wage ruling

TSHWANE: BARGAINING COUNCIL ORDERS CITY TO PAY DELAYED HIKES

- Antoinette Slabbert

NOT A DONE DEAL. The city says it 'will consider all aspects of the implications of the award, and thereafter communicate its decision'. Picture: GroundUp

(GroundUp)

The City of Tshwane has been dealt a huge financial blow after the Local Government Bargaining Council dismissed its application to be exempt from paying staff a 3.5% salary increase in 2021-22.

It was ordered to pay the salary increase, which would have cost the council R489 million in that year, retrospectively within six months. This is expected to amount to at least R2 billion.

In addition, the increase will be reflected in an increase in payroll in coming years.

This comes against the background of the metro's controversial cleaning levy, budgeted to generate R530 million in revenue in the current year, being declared unlawful and scrapped in the High Court in Pretoria earlier.