By Thapelo Molefe
The South African Municipal Workers’ Union (SAMWU) has issued an ultimatum to the government, declaring zero tolerance for ongoing failures by municipalities to pay workers’ salaries.
As thousands of municipal employees across at least six municipalities woke up without pay on Wednesday, SAMWU General Secretary Dumisane Magagula labeled the situation a crisis of economic aggression.
He attributed this to National Treasury’s stringent austerity measures and a fundamentally flawed funding model for municipalities.
“This situation is not merely unfortunate; it is the direct consequence of National Treasury’s dereliction of duty in providing adequate, predictable, and sustainable funding to municipalities, particularly those serving rural and economically marginalised communities,” said Magagula in a media statement.
The union slammed National Treasury for failing to support municipalities, arguing that local governments are being “set up for failure” while betraying both workers and the communities they serve.
Municipal employees in Umzinyathi (KwaZulu-Natal), Thembelihle (Northern Cape), Kheis (Northern Cape), Mamusa (North West), Mafube (Free State), and Kopanong (Free State) have been officially notified that they will not receive their salaries this month.
But this is no isolated incident – it reflects a systemic collapse affecting multiple municipalities and pushing thousands of workers into financial distress.
SAMWU squarely blames National Treasury’s broken funding model, arguing that its failure to provide municipalities with stable, predictable, and adequate resources has rendered many local governments unable to function.
The equitable share system, intended to support poorer municipalities, has instead become a bureaucratic nightmare riddled with delays, underfunding, and resource misallocation.
Worsening the crisis, Treasury’s harsh cost-cutting measures have crippled local governments, forcing municipalities to take on unfunded mandates – essential services they are legally required to provide without the necessary financial backing.
“The equitable share system, ostensibly designed to ensure poorer municipalities can meet their constitutional obligations, has become completely dysfunctional and characterised by chronic delays, chronic underfunding, and systemic misallocation of resources,” Magagula stated.
The crisis is most severe in Mamusa Local Municipality, where workers have gone unpaid since January.
Meanwhile, employees in Kopanong Local Municipality receive their salaries only once every three months – a blatant violation of employment contracts.
“These workers, who include water services technicians, waste management personnel, and infrastructure maintenance teams, are expected to report for duty daily, maintaining critical services that keep communities functioning, all while facing impossible choices between feeding their children, paying their rents, or settling their debts,” Magagula stated.
“This goes beyond unfairness; it represents a fundamental moral failure of governance.”
Beyond unpaid wages, SAMWU has also exposed an even bigger scandal – many municipalities have been illegally deducting money from workers’ salaries for medical aid, pension funds, and funeral policies, but failing to pay these contributions to service providers.
“This constitutes nothing less than institutionalised theft, with devastating human consequences such as gravely ill workers being denied critical healthcare as their medical aid coverage lapses and grieving families facing the unbearable indignity of being unable to bury loved ones when funeral benefits are unpaid,” Magagula said.
“Additionally, workers are losing out on the interests that would have accrued if their pensions were paid over.”
The municipalities implicated in the crisis include Renosterburg, Kheis, Thembelihle, Mohokare, Kopanong, Mahikeng, Mamusa, Maquassi Hills, Tswaing, Naledi, Ditsobotla, Nkomazi, and Enoch Mgijima.
SAMWU is now demanding an urgent salary funding intervention from National Treasury, insisting that it immediately release funds to all defaulting municipalities to settle outstanding wages and compensate workers for the financial hardships caused by the delays.
The union is also calling for a complete overhaul of the equitable share system, arguing that the current funding model disadvantages under-resourced municipalities.
Additionally, SAMWU is demanding an immediate halt to unfunded mandates, insisting that Treasury either fully finance constitutionally mandated services or rescind obligations that force municipalities to provide services without financial support.
To address long-term financial instability, the union is advocating for a structured municipal debt relief program to help struggling municipalities escape unsustainable debt cycles.
SAMWU called for an urgent intervention by the Departments of Employment and Labour and Cooperative Governance (Cogta) to enforce labour laws, prevent municipalities from violating employment contracts, and ensure that no worker is forced to work without pay.
While Treasury bears the brunt of the blame for failing to fund municipalities, SAMWU has also condemned COGTA, accusing the department of cowardly inaction as the crisis escalates.
“The time for empty rhetoric has passed. COGTA and National Treasury must act immediately to protect municipal workers and preserve service delivery,” Magagula declared.
“SAMWU will not stand idly by while municipal workers are reduced to conditions resembling modern-day slavery.”
SAMWU made it clear that this crisis will not be ignored any longer and warned that failure to act will result in nationwide resistance.
“We demand immediate action!” Magagula stated.
“National Treasury cannot continue pleading helplessness while municipalities collapse around it.”
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