GEORGE NEWS - A proposal on what workers should be paid on major municipal infrastructure projects has raised questions about whether higher labour costs could result in fewer jobs or less money being spent on infrastructure.
The issue came before a special sitting of George Council on Monday 28 September, during discussions on the municipality's infrastructure spending plans.
The Patriotic Alliance (PA) proposed that workers employed on civil engineering projects funded wholly or partly through the Integrated Urban Development Grant (IUDG) should be paid applicable industry-related wage rates.
The proposal, tabled by Cllr Raphael Goeieman and seconded by Cllr Marcell Kleynhans, called for the wage requirements to be built into project budgets, grant applications, tenders and contracts. However, the municipality warned that there could be a trade-off.
Acting Municipal Manager Dean O'Neill said grant funding is limited and that if the cost of a project rises, less money is available for the actual infrastructure and potentially fewer workers can be employed.
The municipality also pointed to the Expanded Public Works Programme (EPWP), through which temporary work opportunities can be created at applicable EPWP rates.
Council considered the wage proposal while adopting its 2026/27 Consolidated Capital Expenditure Framework (CEF). The framework is essentially a long-term plan that helps the municipality decide which infrastructure needs should receive priority when limited capital funding is available.
Projects are assessed according to factors including service backlogs, population growth, affordability, infrastructure needs and whether they are ready to proceed.
Importantly, adoption of the framework does not mean individual projects have been funded. "The CEF does not approve funding for individual projects. Projects still have to go through the annual budget process and can only proceed once funding has been approved and is available," reads the statement by George Municipality.
‘We bring you the latest Garden Route, Hessequa, Karoo news’
