Durban - Despite having made a last-minute back payment over the weekend to disgruntled workers who engaged in an illegal strike, Mhlathuze water is still on edge as there is still an unresolved dispute.
Late last week hundreds of workers from the Richards Bay-based water entity downed their tools, demanding their money.
According to the workers, the bone of contention was over salary increments, housing and overtime allowances.
They alleged that the management, dating back from the time of the suspended chief executive, Mthokozisi Duze, claimed that they had no money to pay them.
As a result, a collective bargaining agreement reached with the Amanzi Bargaining Council where all water boards employees bargain, could not be implemented.
In a sudden turn of events, the workers were angered when IOL carried a video clip where the acting CEO of the water board, Dr Simo Lushaba, said their finances were not strained at all and the decision to merge them with Umgeni water was not because they were an entity under distress.
UPDATE: Mhlathuze water board in Richards Bay has issued an ultimatum to its illegally striking workforce to return to work with immediate effect. The strike is over salary increments and customers of the water entity have been warned that water supply could be disrupted. @IOL pic.twitter.com/hrdhwYdtAp
— Sihle Mavuso (@ZANewsFlash) October 28, 2022
“All along they claimed that they have no money to increase our salary and pay other benefits. Yet the new CEO told the media last week that they have money. So why not pay the workers,” a worker told IOL late last week.
Later a batch of documents was sent to IOL to prove that the workers have been trying to force Mhlathuze Water to honour the agreement.
In one case, an arbitrator ruled in favour of the workers, but the ruling was ignored by the water board.
On Friday the workers engaged in a wildcat strike and police had to be called in to restore order.
LOOK: Tense situation at Mhlathuze Water offices after workers of the entity engaged in a strike over salary increments. The entity allegedly refused to implement a decision of the Amanzi bargaining council on the matter. The entity says it is negotiating with the workers. @IOL pic.twitter.com/XDR9cQ2EwX
— Sihle Mavuso (@ZANewsFlash) October 28, 2022
Under pressure, Mhlathuze Water had to issue an impromptu note to its clients which include the City of Mhlathuze (Mpangeni-Richards Bay) and big factories to allay fears of water cuts.
Later, they also issued an ultimatum to the striking workers to return to their posts or face the consequences.
From there the workers were immediately back-paid for their outstanding housing allowances to avert a full-blown strike.
“Further to the meeting held with Samwu representatives yesterday, and as conveyed, the board has resolved that management implement the Arbitration Award in respect of the housing allowance to staff within the Bargaining Unit. The board had requested management to determine the value of backpay in the housing allowance from the time that the staff were converted from basic plus benefits and allowances (2006) to the current total salary package.
“Having applied annual increments to the housing allowance from October 2006 on an A-band employee, this amount has been derived to be R13 126.12 backpay for the period July 1, 2019 to June 30, 2022.
“This being the difference between what was paid towards housing allowance and the amount reflected in the collective agreement. As per the arbitration award, management has derived the backpay amount to be paid to staff for the period July 1, 2019 up to the June 30, 2022
“The board has resolved that this amount be paid out to all staff in the Bargaining Unit. The finance department will therefore be processing this payment as per the resolution of the board on the 28th October 2022,” reads a memo announcing the payment of the housing allowance.
However, there is still an outstanding issue as there is a dispute regarding when should the backpay start – some want it dated back to 2017.
The workers are once again threatening to strike to force the water board to look at the matter.
In response to the allegations that when it did not honour the bargaining agreement because it was broke, the water board said that was not true.
“First, we would like to reject the insinuation that Mhlathuze Water is in financial difficulty and is therefore unable to meet its obligations to its employees.
“The organisation remains financially viable with a healthy balance sheet. Equally untrue is that we have defied the decision of the Amanzi Bargaining Council to backpay employees.
“If anything, we have complied with the ruling by paying employees, on the weekend of 29 October 2022. Having applied annual increments to the housing allowance from October 2006, this amount was calculated to be a sum of R13 126.12 per employee, backdated to 2019.
“This amounted to R2 691 409.12 for 229 employees within the Bargaining Unit – A to D3 at Mhlathuze Water. We believe that employees may have misunderstood the award in demanding that they be paid extra than what has already been paid to them,” the entity told IOL on Tuesday.
The water board said it does not anticipate a fresh strike since the workers are not, by law, permitted to strike.
“We are an essential service and registered as such. We therefore do not believe that the strike will be legal in terms of the laws of the country.”
sihle.mavuso@inl.co.za
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