SANDILE MOTHA
The ANC-led eThekwini municipality has found itself in hot water for its proposed salary adjustments and bonuses for its senior staff despite the ongoing tough economic climate.
Although President Cyril Ramaphosa announced an across the board salary cuts as a result of the projected economic meltdown due to the Covid-19 pandemic, Inside Metro has learnt that the city will forge ahead with the proposed salary increments.
The city is set to hold its full council meeting at the end of this month where the proposal will be tabled and deliberated with the ANC being a majority party, the proposal is expected to receive green light.
The proposed salaries, 13th cheque and bonus structure is said to be over a billion rand for the 2020/2021 financial year.
Now opposition parties in the metro have warned of disastrous consequences should the salary adjustments see the light of day.
“The ANC has an outright majority in the council. At the moment what we are trying to do is to ensure that the public understand as to what is going on. We are also working on a system of a more comprehensive objections to the budget and salary increases,” said Nicole Graham, Democratic Alliance caucus leader speaking to Inside Metro this week.
She said the municipality had experienced serious cash flow complications in the aftermath of the COVID-19 pandemic, saying the city recorded a mere 55 % collection rate for the last billing month.
“People can’t afford their bills and tariffs are set to go up again which make things less affordable for households. If this cannot stabilise the municipality cash reserves and it cash flow won’t be able to pay anyone shortly, let alone provide essential services,” she said.
Graham said the only option the city has is to renegotiate contracts with workers and not hide behind the defence that it had signed a binding three year salary agreement with trade unions.
“We are also having conversations with other political parties to have solidarity around this,” added Graham.
The Inkatha Freedom Party also joined the fray, saying the increases were a slap in the face to tax payers and the poor.
“We have also been informed that the metro did not implement the salary cut to its employees as a measure to counteract the economic effect of COVID-19. It is even more disturbing that the municipality is prepared to spend more money on salary adjustments,” said Mdu Nkosi, IFP caucus leader in eThekwini municipality.
According to the draft 2020/21 budget it sees the staff costs increase from R11.6 billion in 2019/20 to R12.7 billion for the 2020/21 financial year, a staggering increase of 9.5%.
The increment include a budget of R600 million set aside for 13th cheque and performance bonuses.
Half of eThekwini revenue comes from the selling of water and electricity while another portion comes from tourism and entertainment spin-offs.
This year, key profile events were halted due to the novel Coronavirus such as World Football Summit, Tourism Indaba, Comrades Marathon and another economic draw card the Durban July is likely to be postponed.
This has dealt a heavy blow to the city’s direct revenue.
Msawakhe Mayisela, Municipal spokesperson confirmed receiving a letter of grievance against the proposed increments from the official opposition, appealing for the city to be given time to deliberate on it.
“The issue of salary increments is decided at the bargaining council and the city cannot unilaterally take a decision to reverse the binding agreement in this regard. We are appealing to the opposition to refrain from using the plight of the country to score cheap political points,” lashed out Mayisela.
Former Cooperative Governance and Traditional Affairs MEC Nomusa Dube-Ncube during her tenure took a stance that all senior municipal employees in worse performing municipalities including Municipal managers who were unduly given performance bonuses will be forced to repay them.
