Tshwane Wins Court Battle Over Wage Exemptions
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Pretoria the Labour Court has set aside two exemption decisions by the South African Local Government Bargaining Council (SALGBC), following review applications brought by the City of Tshwane, ruling that both exemption decisions were flawed in law and procedure.
In a complex judgment delivered by Acting Judge Snyman, the court reviewed two separate SALGBC exemption rulings, which had refused the City’s applications for exemption from implementing a 2021 collective wage agreement. The City had argued it could not afford the wage increases due to severe financial constraints.
In the first exemption matter, the panellist dismissed the application on procedural grounds without considering its merits, citing delay and alleged abuse of process. The court found this approach irrational, stating that the facts did not support such a conclusion and that the panellist was duty-bound to consider the merits. The decision was declared unlawful and set aside, with the matter referred back for a fresh hearing before a different panellist.
In the second exemption case, the court held that the panellist had failed to conduct a proper financial inquiry into the City’s claimed unaffordability, neglected material facts, and applied inappropriate considerations. The exemption refusal was likewise reviewed and set aside. However, given that all relevant evidence was already before the court and no further evidence would be produced if remitted, the court substituted the ruling granting the City exemption from the wage increases in this instance.
A procedural challenge raised by trade unions SAMWU and IMATU concerning the authority of City officials to launch the review applications was also dismissed. The court reaffirmed long-standing legal principles that such objections must be raised via Rule 7(1) notices and not in answering affidavits, ruling the City’s legal representation duly authorised.
In closing, the court declined to make a costs order, deeming it fair in the circumstances.
The judgment highlights the ongoing financial difficulties facing municipalities nationwide and the tension between negotiated wage increases and service delivery obligations.
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