COCT 6.25% Wage hike: Covid makes no difference says COCT

COCT 6.25% Wage hike: COVID makes no difference says COCT.

Following the previous two articles in this respect, we received the following reply from Ald. Neilson.

We can all hold views on what is reasonable or not, but the reality is that we have a labour law dispensation in South Africa that we have to comply with. The 3-year agreement bases its calculation on the actual CPI for the previous period, not the projection for the future. It also says that if the CPI is less than 5%, it will be deemed to be 5%. Cape Town did not make these rules. The Bargaining Council did. We are pursuing the path that gives the most likely best outcome, which to negotiate through SALGA to the bargaining council for a review of the agreement. We believe that a national engagement, which includes all the municipalities that are in a much worse state than Cape Town, provides a better chance of success than a rolling of the dice on an exemption by the country’s financially strongest municipality.

Ian, I understand what you are saying and respect your opinion. However, your statement “The 3-year agreement bases its calculation on the actual CPI for the previous period, not the projection for the future.” is factually incorrect (Please see clip of instruction for 2020/21 increases).

Though I appreciate the arrangement that should the CPI be below 5% it will be deemed as 5% is a huge (obvious) flaw in business ethics. Nothing prohibits that CPI can fall to below 1% (as the pandemic clearly indicates this). From a moral and ethical point of view, don’t you believe that this should be challenged with urgency?

If the City is as concerned about the ratepayers and future business as advocated over the media, these factors play an extreme important role in economic survival. The big businesses you wish to attract are using these same ratepayers to fuel their resources. And they are asking questions……

Finally, the MPC has in May (prior to the budget being presented to Council) projected, during the pandemic, the CPI to fall further to 3.4% for 2020. Thus, at 6.25%, is 84% above CPI. Do you sincerely believe that it is still in line?

Originally Published by Mike Heyns | Smart Compact 

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