SAMWU threatens strike as Joburg wage deal stalls after finance minister halts R10.3bn agreement

Union signals industrial action after minister halts deal

SAMWU, which represents about 23,000 members in the city, said it will meet its members next week to decide a way forward and has not ruled out withdrawal of services. The union’s regional leader, Lebogang Ndawo, told Sowetan the minister’s intervention undermines workers and the courts.

“As a union, we don’t believe the deal has been halted. He [Godongwana] might have written a letter, but that letter does not carry the weight of a court order. He’s acting beyond his powers. That’s why we’re saying the letter itself exceeds the authority he’s been granted, because it undermines labour bargaining and collective agreements, which is not his scope,”

Ndawo also said the city’s wage bill is around 20% of the budget and that the union is “far from the issue of budgets.” He said SAMWU will discuss possible action with members but did not specify timing or form of protests.

Minister cites unsustainability and threats to financial stability

Finance Minister Enoch Godongwana decided to halt implementation of the wage agreement, calling it unsustainable and a threat to the city’s financial stability. The minister also warned he could withhold grant funding if the city fails to address financial-management issues, including R25.2 billion owed to creditors.

City leadership urges calm, engages with auditor and national government

Johannesburg mayor Dada Morero has urged calm while discussions continue. Morero told Sowetan he has met with the Auditor-General and was expecting to meet with Godongwana for further talks.

“Post that meeting [with Godongwana] we will then be able to give you a fully informed report on the discussions that we had in relation to the letter,”

“I want to assure residents, stakeholders, investors, and the broader public that there is no cause for concern. The city is confident it will provide satisfactory responses to the matters raised and remains steadfastly committed to transparency, accountability, and sound financial management in the best interests of the residents of Johannesburg.”

Background: deal and workers’ hardships

The wage agreement was finalised in 2025 and consolidated in 2026 to address long-standing pay disparities. The increases were scheduled to be paid in batches starting this year.

Workers told Sowetan they are under financial strain and that the adjustments would ease their burdens. One SAMWU member using the pseudonym Nthando, who has worked in administration for the city for 10 years and earns R12,000, described severe monthly financial pressure.

“From my perspective, inflation is high, and the cost of living in Johannesburg isn’t like an ordinary city; it’s impossible to survive comfortably… After deductions, I’m left with little,”

Another worker, using the pseudonym Maria, an emergency services employee of 28 years who earns R40,000, said she had been waiting for the pay boost to help provide stability for her family.

“I am a single mom who cannot afford many things because I have to pay certain expenses… It’s really hand-to-mouth,”

What’s next

SAMWU’s planned meetings with members and the scheduled talks between the city and the finance minister will determine whether the standoff escalates into industrial action or is resolved through negotiations. City officials say they will report back after the planned meeting with the minister.

Note: Some worker names in reporting were not their real names.