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City of Joburg commits to honour R10bn wage agreement with SAMWU

Jul 13, 2026 | Labour Market News

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