Background  |  Funding  |  Structures  |  Central Council  |  Executive Committee  |  Bargaining Committee  |  Working Groups  |  Powers & Functions  |  The Future


Background

Before the establishment of the Interim SALGBC (as it was known before registration) parts of the local government sector were under the jurisdiction of various Provincial Industrial Councils (later called Bargaining Councils). The result was that there was no national uniformity in the way that employers and unions addressed labour matters. Instead, conditions of service and standards of pay differed from province to province.


Funding

The long delay between establishing and registering the SALGBC (almost four years) resulted in major financial difficulties as the parties had to bear the costs of their delegates' attendance. This expenditure was not budgeted for because it was expected that the SALGBC would be registered in a few months and would then be able to fund these costs by imposing a levy.

On registration in March 2001 it imposed a levy of R2,50 per month, payable by each employee, and a further R2,50 per month per employee payable by the municipalities back dated to 1 July 1999. The SALGBC thus received R5,00 per month for every municipal employee in South Africa.

1 July 2004 this levy was increased to R2,70 per month, payable by each employee, and a further R2,70 per month per employee payable by the municipalities.  A total of about R1 188 000 per month for the country's 220 000 municipal employees. These levies are used to finance the salaries of SALGBC personnel, their and delegates' subsistence and travel expenses, catering and other regular expenses such as legal costs (dispute resolution, stationary, telephone, etc.)


The SALGBC and its structures

The Interim SALGBC got off to a shaky start because the provincial Bargaining Councils had to accept that their powers were being centralised.

The Interim SALGBC had a Central Council and thirteen divisions: one division for each of the nine provinces and another one for each of the metropolitan areas as recognised in 1997 (Johannesburg, Cape Town, Pretoria and Durban).

The two 'new' metropolitan municipalities (Nelson Mandela Metropolitan and Ekurhuleni) do not yet have separate divisions. They would have to apply for this status at the SALGBC. Before 5 December 2000, metro divisions had numerous municipalities within their jurisdictions. Since 5 December 2000 metro divisions have a single municipality as the employer party.

Because it was not yet registered as a Bargaining Council in terms of the Labour Relations Act, the Interim SALGBC could not impose levies on employers and employees to finance the Council. The parties to the Interim SALGBC then agreed that, before registration, they would pay their own travel costs as well as the accommodation costs of their delegates. These costs would be claimed back from the SALGBC after registration. As the Interim SALGBC had no funds to appoint permanent personnel, it was agreed that some municipalities would second some of their employees to the divisions. The present General Secretary of IMATU, Theo Crouse, volunteered initially to act as the General Secretary of the Central Council.

Collective Bargaining previously took place in the various Provincial Bargaining Councils. Therefore, the leadership of the various parties was not very well acquainted with Central Bargaining. Apart from the annual salary and wage agreements between 1997 and 2001, very few other collective agreements were entered into during this period.

Despite a lack of finances and permanent personnel, the SALGBC managed to survive due to a shared vision that a single National Bargaining Council was an absolute necessity.


Central Council

The SALGBC has a Central Council which acts as its plenary. Its 60 seats are shared equally between SALGA and labour. It has the power to approve, among other things, the budget and the audited financial statements.


Executive Committee

Initially the SALGBC functioned without an Executive Committee. This meant that a Central Council meeting had to be convened every six weeks to deal with the normal day-to-day issues of the Council. The SALGBC's Constitution has been amended to provide for an Executive Committee with specific delegated powers. This amendment has not been registered yet by the Department of Labour. However, in anticipation of the registration, the Executive Committee is already up and running and consists of five representatives each from SALGA and from Labour.


Bargaining Committee

A Negotiating Committee has also been formed, with ten representatives each from SALGA and Labour. Its primary function is to collectively bargain salary and wage increases, uniform conditions of service, etc. This was previously done by the Central Council, which proved difficult because of the large number of delegates.


Working Groups

The Executive Committee also formed various advisory working groups and committees:

  • The Employee Benefits Working Group deals with pension and retirement funds, medical aid schemes, conditions of service, etc.
  • The Municipal Services Working Group deals with municipal services. Much of this group's deliberations is on restructuring the electricity services, water and refuse removal.
  • The Occupational Health, Safety and Environment Working Group deals with issues arising from legislation on health, safety and environmental matters.
  • The National Moderation Commission has to modify and implement the new TASK Job Evaluation System. This is a single job evaluation system for the local government sector in South Africa. This process has now reached an advanced stage and the training of the Principal Job Evaluation Manager have already commenced.
  • The Finance Committee and Human Resources Committee advises the Executive Committee on financial and human resources matters.
  • The Technical Advisory Committee has two SALGA delegates and one delegate each from IMATU and SAMWU. These delegates are officials, whereas the working groups consist of politicians and officials of each party. The TAC advises the Executive Committee on the legal implications of constitutional amendments to legislation and general legal or technical matters. It has no decision-making powers.

Powers and functions

In terms of the SALGBC's constitution certain powers are reserved for the Central Council. The Central Council may delegate any matter to a division of the SALGBC for finalisation. Importantly, the constitution does not allow delegation to a municipality. Therefore, a municipality cannot, for instance, negotiate at a local level about core conditions of service.

Because of the drive towards centralising powers, uniformity and collective bargaining, the Central Council rarely delegated any of its powers to a particular division for finalisation. It has now been acknowledged that this is not ideal; certain levels of bargaining should be agreed on which may include bargaining at a local level, such as the Local Labour Forum of a municipality. A particular matter in a specific region or at a specific municipality could be dealt with by the relevant local parties, who are more familiar with the particular circumstances.

The SALGBC's constitution requires a two-thirds concurrent majority from SALGA and Labour in order to adopt any resolution of the Council. This means that any party to the SALGBC can veto a resolution. In terms of a proposed amendment to the constitution, which is currently with the Registrar of Labour, the parties will only req