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By Kailene Pillay 
15h ago
Nicole Graham, head of the DA committee in the city, said they had been reliably informed that the 13th staff check remained in the budget of R600 million.
“This is in addition to a 6.25% staff increase and performance bonuses,” he said.
Since then, Graham wrote to city treasurer Krish Kumar and vice mayor Belinda Scott, chairman of the finance portfolio committee, to get the exact breakdown of personnel costs.
She said they were demanding that this expense be removed from the budget.
“In the real world, beyond protected government employment, people are cutting wages, and businesses and families are desperately trying to find ways to earn a living. The eThekwini municipality has offered minimal relief to those who are struggling, while rates will rise again.
“It is simply unacceptable that the personnel costs in the municipality increase by more than R1 billion in the next financial year and that the municipal personnel receive increases, number 13 checks and performance bonuses,” he said.
The city said the salary increase agreements had been signed and sealed in the negotiating council, and that it could not make a unilateral decision to reverse the “binding” agreement.
The draft of the 2020/2021 budget, which must be submitted to Exco at the end of May, shows that personnel costs in the municipality will increase by R1.1bn in the next financial year.
Deputy Mayor Belinda Scott requested that all inquiries be directed to Mayor Mxolisi Kaunda or Kumar.
“This is the first time I have heard of this. I really don’t know anything about it and I can’t speak to him, “Scott said.
City spokesman Msawakhe Mayisela confirmed that he received the letter from the district attorney and asked for space to deliberate on it.
He accused the opposition party of using the country’s difficult situation to earn cheap political points and spread a narrative that the municipality did not care about its residents.
“The issue of salary increases was decided in a binding contract in the negotiating council and the municipality cannot make a unilateral decision to go against it. The city is doing everything possible to minimize the costs associated with the basic services we provide. We will never be happy that our residents pay a significant amount of money for these services, but we must all bear in mind that the city has a responsibility to fulfill its constitutional mandate to provide basic services without ceasing. And it requires income for that, “said Mayisela.
He added that the municipality had reserved almost R70m for social aid exclusively for the poor during this difficult period.
“Why would the city be branded as indifferent?” he said.
The city suffered a decrease of R1.5 billion in net revenue, since the start of the blockade, as the collection rate fell by at least 40%. In a recent report to the city council, the projected loss in revenue for fiscal year 2019/2020 is estimated at R3.8bn and will result in cash available for 39 days.
Former IFP councilor Mdu Nkosi said this was a clear sign that previous agreements regarding raising wages should disappear.
Nkosi said the municipality needed to approach the negotiating council to renegotiate the deal and explain to its employees that the increases could not take place.
“We do not support these increases, bonuses or number 13 checks. These are unique times, so unique approaches must be taken. We cannot simply say that there is an agreement and that there is nothing we can do, “Nkosi said.
The binding three-year deal for wage increases has been described as a “sad excuse” by Efficient Group chief economist Dawie Roodt.
Roodt said that while he understood that the agreements were in force, the reality was that everyone had had deep financial problems due to the Covid-19 pandemic, which justified the renegotiation of some agreements.
“It is simply unacceptable for a municipality to issue bonds and increase while its residents lose jobs. It should not just be the private sector that is suffering right now. Municipalities should also be cutting back. The truth is that some of these politicians act like demigods and it is time for the taxpayer to put their foot on the ground, ”said Roodt.
The DA and IFP are expected to vote against the municipal budget unless changes are made.
Graham urged the public to take a position against this “immoral folly”.
“The public, which is struggling because of this pandemic, cannot be expected to spend more and more to finance the municipality’s ridiculous salary bill,” he said.
The Mercury
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