Union shocked by managers’ huge pay hike

Union members yesterday reacted with shock to the huge pay hikes municipal bosses across the country are set to receive in the 2015-16 financial year.

The Daily Dispatch reported yesterday that the Department of Cooperative Governance and Traditional Affairs (Cogta) had re-categorised some of the country’s municipalities, resulting in salary adjustments of more than 40%.

South African Municipal Workers’ Union (Samwu) issued a statement immediately after the report, saying the union was disgusted at reports that municipal managers and directors would receive such highly inflated increases.

The announcement comes days after Samwu finalised a wage deal with South African Local Government Association (Salga), which runs until June 30 2018.

Samwu spokesman Papikie Mohale said they believed Cogta had deliberately waited for the union to conclude its salary and wage negotiations with Salga before announcing “the exponential and unjustifiable salary increases” municipal managers and senior managers would receive.

“When municipal workers demand living and decent wages, we are conveniently told that municipalities do not have money for such increases, yet when municipal managers get exponential increases, that argument does not work,” said Mohale.

Samwu reached a 7% salary increase agreement with Salga on September 2. The agreement includes other benefits including a homeowner allowance of R700.

Mohale said municipal workers demanded to be treated fairly, further adding these were the people responsible for the delivery of services.

“Samwu believes that the huge wage bill that Treasury minister recently complained about is as a result of these salaries given to senior management in municipalities, people who are clueless about service delivery,” he added.

While addressing Samwu’s 11th national congress, Cogta’s Minister Pravin Gordhan promised to ensure there would be a ceiling on salaries received by municipal managers, Mohale claimed.

“We are disturbed and disappointed that the minister has gone back on his word and is now allowing practices which will ultimately lead to the crippling of municipalities, under his watch. We urge the minister to stick to his words to ensure that municipalities are financially viable.”

The union singled out King Sabata Dalindyebo (KSD) Municipality.

The Dispatch has reported extensively on how KSD municipal managers and its directors earn above Cogta’s determination.

In the 2014 gazette, category one municipalities were meant to pay their municipal managers between R575930 and R703910.

The latest gazette now places the pay for these municipal managers between R804440 and R983204.

KSD, which falls under category one, already pays its directors R1.1-million, while the municipal manager’s salary is about R1.3-million.

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