City of Joburg commits to honour R10bn wage agreement with SAMWU

Mayor Dada Morero has admitted the city cannot afford to pay the amount due this month and says it is now negotiating with labour to defer the payment.

City of Joburg Mayor Dada Morero addressed the Westbury community on 11 September 2025 following two of protests over a lack of water supply. Picture: Jacques Nelles/EWN

The City of Joburg remains defiant and says it will honour its controversial R10.3 billion wage agreement with the South African Municipal Workers’ Union (SAMWU) despite warnings from Finance Minister Enoch Godongwana that the deal is unaffordable.Mayor Dada Morero has admitted the city cannot afford to pay the amount due this month and says it is now negotiating with labour to defer the payment.

The developments come as Johannesburg faces intensifying financial pressure, with National Treasury requiring the metro to meet specific municipal finance management act requirements before releasing its equitable share allocation.

The politically facilitated agreement, which seeks to address historic salary disparities dating back to 1995, requires the city to make a multi-billion-rand payment this month.

ALSO READ: Godongwana reiterates threat to withhold City of Joburg’s July funds over unfunded budget

Morero said the metro is engaging with labour to explore ways to raise the necessary funds.”We are not able to pay it immediately to land, and therefore we are renegotiating a deferred payment, and that negotiation process is underway between ourselves and labour and management. And to do the deferment of the payment of the PFA. But honoring it is, there’s no questions about it, we will have to honor.”

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Source: https://www.ewn.co.za/2026/07/08/city-of-joburg-commits-to-honour-r10bn-wage-agreement-with-samwu

Employers warned to register domestic workers for UIF

  • The Department of Employment and Labour warned that registering domestic workers for UIF is a legal requirement, not a choice
  • Inspector-General Aggy Moiloa confirmed that any employer hiring a domestic worker for 24 hours or more a month must comply
  • SADSAWU, backed by Cosatu, intensified pressure on Labour Minister Nomakhosazana Meth to enforce the law in private households

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Employers were told that registering domestic workers for UIF is non-negotiable. Image: Jonathan Torgovnik/Getty Images
Source: Getty Images

SOUTH AFRICA — The Department of Employment and Labour has issued a firm warning to employers across the country, stating that registering domestic workers for the Unemployment Insurance Fund (UIF) is a legal requirement that cannot be ignored.

According to IOL, inspector-General Aggy Moiloa confirmed that the obligation applies to any employer who hires a domestic worker for 24 hours or more per month. Employers who fail to register workers or submit the required UIF declarations face strict penalties and legal compliance orders.

SADSAWU Pushes for stronger protections

The directive comes as the South African Domestic Service and Allied Workers Union (SADSAWU), supported by the Congress of South African Trade Unions (Cosatu), has stepped up its campaign for greater labour protections for domestic workers. The union previously marched to the department’s offices to deliver a memorandum to Labour Minister Nomakhosazana Meth, calling for urgent government action to ensure domestic workers are fully recognised as formal employees entitled to the same basic rights as other workers.

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SADSAWU highlighted that a large number of domestic workers continue to be excluded from UIF registration and fair wages, despite many of them being the sole financial providers for their households. Data from SweepSouth indicates that the average domestic worker supports four dependants while earning low monthly wages.

Employment figures paint a concerning picture

The sector has also experienced a sharp contraction in recent years. Worker numbers in the domestic services industry dropped from approximately 1.2 million before the Covid-19 pandemic to around 839,000 in 2025, according to available statistics.

The department said UIF registration serves as a critical safety net, providing financial relief to vulnerable workers who lose their jobs. Minister Meth remains under pressure from labour groups to actively enforce compliance within private households throughout South Africa.

UIF ramps up inspection

In a related article, Briefly News reported on the increasing scrutiny faced by South Africans employing foreign domestic workers and gardeners as surprise inspections by the Department of Employment and Labour ramp up. With proposed penalties reaching R100,000 per undocumented worker, employers are urged to ensure compliance to avoid significant legal repercussions.

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Source: https://briefly.co.za/south-africa/246173-employers-warned-register-domestic-workers-uif/

COSATU and affiliates take to the streets for National Day of Action

File Image: Members of the Congress of South African Trade Unions (COSATU).
Image Credits :
Reuters

The Congress of South African Trade Unions (COSATU) is holding its National Day of Action on Thursday, alongside its affiliates, including the South African Municipal Workers’ Union (SAMWU) and the South African Democratic Teachers’ Union (SADTU).

Members will march to the National Treasury in Pretoria to hand over a memorandum. The memorandum is also directed at the Department of Cooperative Governance and Traditional Affairs (CoGTA) and the South African Local Government Association (SALGA).

The labour federation says the aim of its action is to defend workers’ rights.

Cosatu national spokesperson Zanele Sabela says, “At the forefront of this march today is actually our affiliate samwu. We are looking at municipal workers being at the cold face of service delivery in the country. And yet they’re [workers] facing weakened by underfunding. There’s collapsing infrastructure. There’s corruption, outsourcing. ”

“Crucially there’s nonpayment of salaries and benefits. We shouldn’t continue as workers to suffer poor political leadership, austerity budgeting withy management, corruption and the refusal by government to properly implement collective bargaining agreements,” adds Sabela.

Below is the full interview with Cosatu spokesperson, Zanele Sabela:


Source: https://www.sabcnews.com/sabcnews/cosatu-samwu-and-sadtu-to-hold-national-day-of-action-today/

COSATU calls for urgent action to prevent Transalloys closure

Sizekhaya

The Congress of South African Trade Unions (COSATU) has called for urgent intervention to prevent the closure of Transalloys, South Africa’s last remaining manganese smelter.

COSATU spokesperson Matthew Parks says the loss would deal a significant blow to the country’s economy, particularly in eMalahleni, Mpumalanga.

He says the closure comes at a time when South Africa is grappling with an unemployment rate of 43.7%.

According to Parks, around 600 direct jobs and a further 7 000 indirect jobs are at risk if the smelter closes. He said the shutdown would also undermine efforts to reindustrialise the economy, expand local beneficiation and strengthen industrial value chains.

“It is critical that Transalloys, Eskom, the Departments of Electricity and Energy plus Trade, Industry and Competition meet and pull out all stops to find solutions to this long simmering crisis. Closure of this smelter cannot be an option,” Parks stated.

COSATU said it believes the reduced electricity tariff relief package agreed for struggling smelters at Samancor Chrome and the Glencore-Merafe Chrome Venture could provide a model for Transalloys.

The federation said while such a package would offer much-needed short-term relief, a longer-term solution was needed to ensure electricity tariffs remain affordable for consumers, particularly energy-intensive industries such as mining and smelting.

“Key to making electricity affordable to unlock economic growth and ease the cost-of-living crisis for the working and middle classes, is to ensure that all consumers pay for electricity consumed. Municipal debt currently stands at over R120 billion and is rising by approximately R20 billion annually. Tackling this will enable Eskom to end its dependence upon above inflation tariff hikes and in fact begin to reduce the price of electricity and provide greater relief for indigent households,” he added.

COSATU said it would engage Eskom, government and industry stakeholders in an effort to secure a solution that protects jobs at Transalloys and across its value chain, while allowing Eskom to meet its operational mandates.

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Source: https://www.power987.co.za/featured/cosatu-calls-for-urgent-action-to-prevent-transalloys-closure/

Spur launches probe after workers allege labour abuses at Cape Town franchise

Cape Town Spur workers allege exploitation, poverty wages and labour law violations

Allen Ambor's A Taste for Life How the Spur Legend was Born

The allegations have been made by current and former employees of Malibu Spur at Bayside Mall in Table View, Cape Town. (File photo)

Pick n Pay pays its lowest-paid employees nearly R6k per month, while Spar promised 40% increase

If Spar keeps its promise of a 40% increase, the lowest-paid employees could earn more than double what Pick n Pay employees earn.

Pick n Pay pay gap ratio between the Top 5% and Bottom 5% averages is 15.5:1. Picture: iStock

South Africa’s biggest retailers continue to reward their top executives with multimillion-rand pay packages, but their latest remuneration reports reveal a stark gap between top executives and workers on the shop floor.

While some executives take home tens of millions of rand a year, many retailers’ lowest-paid employees earn less than R100 000 annually, highlighting the widening pay disparity across the sector amid the country’s persistent cost-of-living pressures.

Pick n Pay and its sister company, Boxer, released their remuneration report for the 2026 financial year, revealing that their lowest-paid employees earn no more than R6 000 per month. Spar has promised its lowest-paid employees a 40% increase for the 2026 financial year.

Pick n Pay payday

According to Pick n Pay’s remuneration report released last week, the pay gap between executive and non-executive employees speaks volumes, as expected.

The retailer’s highest-paid employee is CEO Sean Summers, who received more than R56.7 million during the period – comprising R25.2 million in total guaranteed pay and R31.5 million in “the annualised accounting accrual recognised in respect of share-based incentive awards for the year”.

The remuneration report revealed that the retailer pays its lowest-paid employee R67 700 per year, which is approximately R5 641.67 per month.

Pay-gap ratio at Pick n Pay

The remuneration report stated that the retailer’s pay gap ratio between the Top 5% and Bottom 5% averages is 15.5:1.

Revealing pay gaps within Johannesburg Stock Exchange (JSE) listed companies is in line with the amendment to the Companies Act of 2008, which requires publicly listed and state-owned companies to disclose how much they pay their lowest- and highest-paid employees.

“The lowest paid remuneration is in respect of a newly appointed Category 1 unskilled general worker remunerated at the applicable prescribed minimum wage of R28.79 per hour in the financial year 2026 who had not yet qualified for an annual bonus payment or other employee benefits,” read the report.

Retailer pays R40 per hour

The report revealed that Pick n Pay’s cashiers earned R40.16 per hour, 20% above the prescribed Sectoral Determination 9 (SD9) minimum of R33.44 per hour. Including the value of benefits provided, the average hourly rate increases to R45.66, or 36% above the SD9 minimum.

“Learners participating in Pick n Pay training programmes have been excluded from the table as they receive a statutory training stipend, which is not comparable with employee remuneration,” read the report.

“Had learners been included in the table provided, the lowest paid remuneration would reflect at R42 000, with average remuneration at R180 000, median remuneration at R121 400 and the reported pay‑gap ratio would have increased from 15.5:1 to 16.4:1.”

Boxer’s payday

Pick n Pay’s sister company, Boxer, pays its lowest-paid employee R67 369 per annum, approximately R5 614.08 per month.

The discount retailer’s highest-paid employee is its CEO, Marek Masojada. He received R34.9 million during the period; this comprises a total guaranteed pay of R8.5 million, short-term performance bonus of R8.5 million, legacy settlements of R4.2 million, and long-term share awards charges of R13.7 million.

“Legacy settlements relate to incentives paid in respect of the pre-IPO retention scheme,” said Boxer.

R28.79 per hour

“The lowest-paid remuneration refers to a full-time general assistant in their first year of employment, remunerated at the prescribed minimum wage of R28.79 per hour in financial year 2026,” read Boxer’s remuneration report.

“Learners participating in Boxer training programmes have been excluded from these calculations, as they receive a statutory training stipend which is not comparable with employee remuneration.

“Had learners been included in the table provided, the lowest paid remuneration would reflect at R36 000, with average remuneration at R107 497, median remuneration at R71 170 and a pay gap ratio of 8.7:1.”

Spar could be the highest payer

Spar could be the retailer that pays its lowest-paid employees the most if the group keeps its promise to raise pay by 40%, from R107 435 per annum.

Spar, Woolworths, and the Shoprite Group have not released their remuneration reports for the financial year 2026.

But Spar, in its remuneration report for 2025, said: “The lowest-paid permanent employee will increase to R150 000 per annum (40% increase) in line with Spar’s living wage for phase 1 in FY2026”.

If this happens, the retailer’s lowest-paid employee will earn R12 500 per month.