An end to wage negotiations within the local government sector could be in sight as a conciliator’s proposal, setting out a number of settlement suggestions to resolve the deadlock, was expected on Monday.

The Independent Municipal and Allied Trade Union (Imatu) stated that the 2015/16 local government wage conciliation talks were concluded on Friday, with conciliator Dr Attie van der Merwe drawing up a nonbinding offer over the weekend.

“We are optimistic that we will have a way forward after this weekend. Once the conciliator’s proposal is received, we will need to embark on extensive consultation with our structures, principals and members,” explained Imatu general-secretary Johan Koen in a statement.

With the conciliation period extended for a further 30 days to enable all parties to obtain a mandate for acceptance or nonacceptance of the proposal, a certificate of nonresolution would not be issued until the parties had responded to the proposal.

Wage negotiations between Imatu and Congress of South African Trade Unions affiliates and the South African Local Government Bargaining Council deadlocked into a formal dispute earlier this year – following the expiry of the current agreement in March – with a “major issue of contention” remaining the sector’s housing allowance.

“The current homeowner’s allowance available to local government employees is R522 a month and this allowance is only available to employees who own houses,” Koen explained, noting that the union aimed to promote home ownership and demanded a housing allowance of R1 100 for all employees who were renting, owned a house or paid loans towards a housing bond.

“[The] parties still need to agree on an appropriate model, the extension of the housing allowance to all local government employees and the movement away from a complex formula to a flat-rate system,” Koen explained.

Despite the proposal being open to acceptance or rejection, he believed it would provide a constructive platform for agreement.