EThekwini residents expected to fork out a billion rand more for staff increases and bonuses
14 May 2020
The Democratic Alliance (DA) in eThekwini has been reliably informed that no planned changes are being made to the municipality's staff salary, increase or bonus structure for the 2020/ 2021 financial year. This is despite the global Covid-19 pandemic hammering the local economy and the city's dwindling cash reserves.
The draft 2020/ 2021 budget- which has to be tabled in the eThekwini Council by the end of May- sees staff costs increase from R11,6 billion in 2019/ 2020 budget to R12,7 billion in the next financial year. This is a staggering increase of 9.5%.
The DA has also reliably been informed that thirteenth cheques for staff remain in the budget to the tune of R600 million. This is in addition to a staff increase of 6.25% and performance bonuses.
We have written the City Treasurer Krish Kumar and Deputy Mayor Belinda Scott, who chairs the Finance portfolio, to ascertain exactly what these figures are and demand that they be removed.
As far as the DA can ascertain, all staff were paid their full salaries during the lockdown and no salary cuts have been implemented for the senior level staff or executive committee Councillors. This was a recommendation of the DA that seemed to have broad support at the Executive Committee level but was simply never actioned.
In the real world, beyond sheltered government employment, people are taking pay cuts and businesses and families are desperately trying to find ways to make ends meet. Very little relief has been offered by the eThekwini Municipality to those struggling and tariffs are set to again go up by exorbitant amounts.
The municipality's cash flow is in serious trouble, with a 55% collection rate for the last billing month. All projections indicate that the municipality is quickly running out of money and if the trend continues, will have very little cash left on hand within a few short months.
It is thus simply unacceptable that staff costs in the municipality go up by more than a billion rand in the coming financial year and that municipal staff receive increases, thirteenth cheques and performance bonuses.
The only real response from the city to date has been referring to a three-year salary agreement with unions. This is a sad excuse and one the DA and the public will not tolerate.
The DA will vote against this budget unless serious changes are made and urges the public to take a stand against this immoral lunacy The public- who are struggling due to this pandemic- cannot be expected to fork out more and more to fund the ridiculous wage bill of the municipality.
Issued byNicole Graham,DA EThekwini Caucus Leader, 14 May 2020
