Makana Municipality is unlikely to go ahead with its lawsuit against the South African Municipal Workers Union, according to a source close to the case who said that the municipality's financial woes might be a deciding factor on whether to proceed with the costly litigation.
Makana Municipality is unlikely to go ahead with its lawsuit against the South African Municipal Workers Union, according to a source close to the case who said that the municipality's financial woes might be a deciding factor on whether to proceed with the costly litigation.
Legal fees could cost Makana in the region of R150 000 to R200 000. Even if Makana drops the case, the embattled municipality will then have to pay the union's legal costs.
This is according to a lawyer, who spoke on condition of anonymity. Makana municipality spokesperson Yoliswa Ramokolo said the municipality was aware of the implications of the case.
Ramokolo told Grocott's Mail Thursday 16 October that a meeting was going take place between Makana's Labour Relations division and the newly appointed Administrator Pam Yako to discuss whether to continue with the case. Local SAMWU Chairperson Zola Kolisi was not keen on speaking ahead of the case.
He said that the union would wait for the outcome and then decide what move to make.
"We can not pre-empt, we will make a statement later on," Kolisi said. This comes ahead of today's (Friday 17 October) court battle between the two parties over an alleged violation of an interdict by the workers aligned to the union. The workers embarked on a strike in July this year despite the fact that the court had declared it illegal.
The industrial action began on 3 July, the first day of the National Arts Festival. It was declared illegal the following week after the municipality obtained an urgent court interdict.
Last month, Grocott's reported that the municipality was unable to pay their lawyers and was, therefore, unable to defend itself in various actions. Creditors were taking advantage of the beleaguered institution's financial situation.
Rumours reached bizarre proportions, with some people saying creditors intended to attach the City Hall itself.
A source within City Hall said some creditors intended to attach municipal fire trucks and the municipal finance building, among other assets.
A report on the state of Makana Municipality compiled by Masifunde Education Trust mentioned expensive lawsuits aginst municipality as one of the factors that contributed to the downfall of Makana.
Samwu and Makana Municipality last appeared in court in August.
