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Home » Goudstad cannot afford a R10.3 billion salary agreement
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Goudstad cannot afford a R10.3 billion salary agreement

By staffJune 11, 20262 Mins Read
Goudstad cannot afford a R10.3 billion salary agreement
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A garbage collector carries garbage bags to a garbage truck in downtown Johannesburg on November 7, 2025. (Photo: EMMANUEL CROSET / AFP)

The FF Plus says the Johannesburg metro board’s proposed salary agreement of R10.3 billion with the South African Municipal Workers’ Union (Samwu) is unsustainable and comes at a time when the metro is already under serious financial pressure.

Franco de Lange, FF Plus councilor in the Johannesburg metro council, says the ANC-led coalition’s decision to enter into the agreement over the next two years is irresponsible given the city’s deteriorating financial condition.

According to De Lange, no organization that is suffering financially can continue to increase expenses without first getting its financial house in order.

“When a company is under pressure, overhead costs are reduced, salary increases are often suspended and operations are streamlined to restore financial stability. The metro should apply the same principles,” he says.

Archive photo of a protest against poor service delivery in Diepkloof, near Johannesburg. (Photo: Phill Magakoe/AFP)

The FF Plus refers to the latest report of the auditor general, in which serious shortcomings in Johannesburg’s financial management and internal control measures are pointed out. The metro only received a qualified audit opinion, which according to the party is further proof of poor management.

Among the most worrying findings are water losses of 44.7%, which amounts to around R3.8 billion in lost income. In addition, City Power reported technical and non-technical losses of approximately 30%, with an estimated value of R5.7 billion.

The FF Plus also points out that Johannesburg’s financial position has weakened significantly over the past five years. According to the party, a total of R45.16 billion was written off in this period due to unauthorized, irregular, fruitless and wasted expenditure.

De Lange says the planned salary agreement should be reconsidered and that the money should instead be used to repair the metro’s dilapidated infrastructure and improve service delivery to residents.

“R10.3 billion can make a significant difference to Johannesburg’s growing infrastructure backlog and the improvement of basic services,” he says.

The FF Plus maintains that responsible financial management is essential to halt the city’s decline and restore residents’ trust in local government.

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