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By Moneyweb

Moneyweb: Journalists


Tshwane workers demand 18% increase given to top managers

The city manager was supposed to come to an agreement with the unions about the matter, but seemingly failed to do so.


Members of the South African Municipal Workers’ Union (Samwu) locked down the Pretoria central business district (CBD) yesterday in protest against an 18% pay increase, backdated to 2017, that was given to group managers and executive directors in the city administration.

They want the same.

Movement in the city centre was disrupted on Monday morning (July 29), and rubble strewn across the streets by striking workers was still affecting traffic in Arcadia, a suburb on the outskirts of the CBD, on Monday night.

The 18% increase is over and above the 6.5% annual increase agreed upon at the bargaining council, according to Samwu.

The demands come while the city is still awaiting energy regulator Nersa’s approval of its electricity tariffs. The tariffs were supposed to take effect on July 1 and generate a 12% increase in electricity revenue compared to the previous financial year.

The city however submitted an incomplete and flawed application, which delayed the approval process. As a result, its major source of income is still uncertain.

Against this background, extending the increase across the entire workforce could have a very negative impact on the city’s finances.

According to Rudy de Bruyn, Tshwane regional manager of the Independent Municipal & Allied Trade Union (Imatu), the city implemented the controversial 18% increase for group managers and executive directors earlier this month and also made the payment backdated.

Unions not consulted

Buys said this was done against Imatu’s advice and outside of the bargaining council structures.

The decision to grant the group this increase stems from a report that was tabled in council in October last year. It dealt with the fact that the group heads and executive directors were mistakenly appointed on fixed-term contracts, instead of being part of the city’s permanent staff complement.

To rectify this, and at the same time provide for the upgrading of the city from a grade 9 to a grade 10 council, the city decided on the 18% increase.

The city manager was supposed to come to an agreement with the unions about the matter, but seemingly failed to do so.

De Bruyn says the impact of the higher grading was supposed to be discussed at the labour forum. The aim was to reach agreement between the employer and workforce about the impact and implementation of any changes in conditions of employment.

This has not yet happened, he said.

In the meantime it has also been disclosed that the city has agreed to pay Tshwane city manager Dr Moeketsi Mosola a golden handshake of more than R7 million to relieve him of his duties less than halfway into his five-year contract.

De Bruyn says the unions now demand at least a non-pensionable allowance until the new salary scales have been finalised.

The union met with the employer last week and hopes to get some feedback this week.

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