Note to Editors: Please find English and Afrikaans soundbites by Ald Cilliers Brink here, and here
Reality has hit home for the ANC-led coalition in Tshwane as they decide to proceed with the fight in the Labour Court, to not pay historical salary increases to city officials.
Forgoing these increases is essential to the city’s financial recovery, including its ability to catch up with Eskom debt. Settling the Eskom debt, in turn, is essential to clearing the city’s credit record to enable infrastructure spending.
While both the ANC and ActionSA voted in favour of forgoing salary increases in 2023, they later tried to weaponise the matter against my mayoralty. ‘Just pay the workers’ was a familiar attack on me and my colleagues when we were making difficult decisions about the city’s financial recovery, despite the ANC and ActionSA voting against the increases.
In fact, the ANC actively raised expectations that these increases would be paid once the ANC was in charge. A few weeks ago, Tshwane Mayor Nasiphi Moya insisted that the increases would be paid regardless of the ‘modalities’.
As I pointed out in a Politicsweb opinion piece the week before last, a settlement agreement between Tshwane and Eskom over arrear debt would not be possible if Tshwane reached an unaffordable salary deal with unions.
And so, it has come to pass. Today the Mayor made two announcements at the same time:
- The city has decided to proceed with not paying salary increases, and
- It has reached a settlement with Eskom on arrear debt.
This is good news for the city, but it will require more difficult decisions. It would seem that the writing-off of Eskom’s interest on arrear debt is conditional on the city sticking to its payment plan.
If this settlement becomes an order of Court, it will require iron-like financial discipline from Tshwane. If one Eskom payment is missed, it might mean that the deal is lost, and that all arrears become due and payable immediately.
This is why it is essential for Tshwane to continue with the Tshwane ya Tima campaign started by the previous city government to improve billing and collections.
Like forgoing salary increases, Tshwane ya Tima is another difficult, but necessary, undertaking to get Tshwane out of trouble.
In opposition the DA will continue to support the difficult measures we undertook in government to achieve Tshwane’s financial rescue.
The ANC and their coalition partners might well conclude that it was easier to try derail these efforts in opposition than it will be to implement them in government.