ActionSA congratulates the Multiparty Coalition Government in the City of Tshwane for demonstrating bold, responsible and collaborative leadership in resolving the long-standing 3.5% wage dispute affecting more than 21,000 municipal employees.
The decision to accept the legal ruling and negotiate a structured settlement was both correct and necessary. Continued litigation would have been manifestly irrational and fiscally irresponsible. The previous DA-led administration’s misguided legal gamble turned what was originally a roughly R400 million challenge into a ballooning R1.55 billion exposure. That poor judgment placed the City’s financial stability and service delivery at serious risk.
Instead of doubling down on that error, the current coalition government chose maturity over ego and resolution over escalation.
Through structured engagement with organised labour, the City has reduced the backpay liability to R1.088 billion by calculating it on basic salary only, delivering a saving of nearly R467 million compared to the original exposure. The agreement phases payments responsibly from 2026 to 2029, prioritising lower-income workers first, while protecting the City’s financial framework.
This is what disciplined governance looks like.
The settlement is incorporated into a fully funded Adjustment Budget that retains an operating surplus and increases allocations to critical services, including electricity infrastructure, water and sanitation upgrades, and emergency response capacity. No frontline services have been defunded and no core infrastructure programmes have been sacrificed to fund this obligation.
It would have been ludicrous to continue pursuing litigation in the hope of political optics while costs compounded and uncertainty deepened. Legal fees would have mounted. Interest exposure would have grown. Labour relations would have deteriorated. The ultimate financial burden would almost certainly have increased.
The coalition government chose a different path. It chose dialogue over delay and stability over brinkmanship.
This agreement restores certainty, protects workers’ rights, and safeguards the financial integrity of the City. It also demonstrates the difference between ideological rigidity and pragmatic leadership.
ActionSA remains committed to coalition governance that puts residents first, strengthens institutions, and refuses to allow past misjudgements to define the future of our cities.
ActionSA Welcomes Bold Leadership in Tshwane Wage Settlement
ActionSA congratulates the Multiparty Coalition Government in the City of Tshwane for demonstrating bold, responsible and collaborative leadership in resolving the long-standing 3.5% wage dispute affecting more than 21,000 municipal employees.
The decision to accept the legal ruling and negotiate a structured settlement was both correct and necessary. Continued litigation would have been manifestly irrational and fiscally irresponsible. The previous DA-led administration’s misguided legal gamble turned what was originally a roughly R400 million challenge into a ballooning R1.55 billion exposure. That poor judgment placed the City’s financial stability and service delivery at serious risk.
Instead of doubling down on that error, the current coalition government chose maturity over ego and resolution over escalation.
Through structured engagement with organised labour, the City has reduced the backpay liability to R1.088 billion by calculating it on basic salary only, delivering a saving of nearly R467 million compared to the original exposure. The agreement phases payments responsibly from 2026 to 2029, prioritising lower-income workers first, while protecting the City’s financial framework.
This is what disciplined governance looks like.
The settlement is incorporated into a fully funded Adjustment Budget that retains an operating surplus and increases allocations to critical services, including electricity infrastructure, water and sanitation upgrades, and emergency response capacity. No frontline services have been defunded and no core infrastructure programmes have been sacrificed to fund this obligation.
It would have been ludicrous to continue pursuing litigation in the hope of political optics while costs compounded and uncertainty deepened. Legal fees would have mounted. Interest exposure would have grown. Labour relations would have deteriorated. The ultimate financial burden would almost certainly have increased.
The coalition government chose a different path. It chose dialogue over delay and stability over brinkmanship.
This agreement restores certainty, protects workers’ rights, and safeguards the financial integrity of the City. It also demonstrates the difference between ideological rigidity and pragmatic leadership.
ActionSA remains committed to coalition governance that puts residents first, strengthens institutions, and refuses to allow past misjudgements to define the future of our cities.