The Public Servants Association of South Africa (PSA) has rejected Finance Minister Enoch Godongwana’s instruction to withdraw a wage agreement with municipal workers, arguing instead that the city of Johannesburg should be placed under administration.
The minister recently wrote to Johannesburg mayor Dada Morero, ordering the metro to rescind a pay deal reached with the South African Municipal Workers’ Union. However, the PSA warns that punishing employees is neither fair nor a solution to the city’s deepening financial crisis.
“It is very unfortunate that at this stage workers have been made scapegoats for the failures that have been coming from this municipality since 2016,” said Reuben Maleka, general manager of the Public Servants Association of South Africa.
Maleka noted that workers and Johannesburg Metropolitan Police Department officials engaged in protests as early as 2022 and 2023, shutting down the M1 freeway. He argued that those actions demonstrated the municipality has “always been in trouble financially” due to a “lack of financial prudence.”
With the city holding just over three billion rand in cash but facing debts exceeding 25 billion rand, Maleka said the national treasury has been “late in its action.” He called the minister’s directive to withdraw the wage agreement “unfair” and accused Godongwana of missing the point.
“We are of the view that the only solution now should have been to put the municipality under administration in terms of section 139 of the constitution and allow the provincial government to take over,” Maleka said. He added that a provincial intervention could restore good governance and financial prudence ahead of the elections scheduled for November 4.
The Johannesburg Crisis Alliance has separately raised concerns over what it describes as the poor financial priorities of a technically insolvent city, arguing that the metro prioritises perks for officials and workers over critical service delivery.
Maleka rejected any unilateral withdrawal from the wage resolution, stating: “You cannot unilaterally withdraw from an agreement. If there are financial difficulties, it’s only fair that they put the books open to the trade unions involved.”
He warned that cancelling the agreement without due process would be “a travesty of justice” and a violation of fair labour practices. He also dismissed the notion that workers should bear the brunt of the crisis, insisting instead that politicians who approved budgets without available funds must be held accountable.
“Workers must continue to receive their salaries. The agreement must be honoured,” Maleka said.
On job security, he argued that municipal employees are better positioned to help restore the city’s finances under an administration process, noting that service providers have also gone unpaid for months.
Asked about morale among public servants, Maleka said it is “demoralising to know that instead of looking at avenues to salvage the municipality, the first attack is on the workers.” He added that the first casualties should be those in authority, not the employees.
