/ 5 July 2002

Union trashes ‘disgraceful’ salaries

The South African Municipal Workers’ Union (Samwu) highlighted “disgracefully” high salaries paid to municipal managers in the war of words surrounding its national wage strike this week.

Samwu represents 220000 muni-cipal employees nationwide and had demanded “a minimum living wage” of R2200 a month in talks with the South African Local Government Association (Salga), an overall 10% increase. Salga unilaterally awarded an 8% raise.

The union estimates that 100000 workers are on strike. Salga has given no figures, but municipal services have been disrupted in Johannesburg, Cape Town, Durban and other major centres. In downtown Johannesburg, where tons of rubbish has been left uncollected, some workers have overturned dustbins and strewn garbage over the streets.

Justifying its wage demand, Samwu said that the municipal manager in Bergville, KwaZulu- Natal, which had an annual income of R2,1-million, was paid R404000 a year. Vulamehlo municipality, near Scottburgh in KwaZulu-Natal, was a grade one council without a rates base, but paid its manager R520000 a year.

Other examples of excessively high managerial salaries cited by the union included:

” Matatiele in KwaZulu-Natal, where the manager was paid R520000 a year;

” Newcastle, where the manager was paid R836870, plus a performance bonus of R80000;

” Durban’s unicity manager was paid R836870, plus a performance incentive of R507204;

” Kimberley’s city manager Phemelo Sehunelo was paid two transport allowances totalling R15710. Sehunelo’s yearly salary, excluding 13th cheque and performance bonuses, was R490579;

” In Buffalo City (East London), manager Mxolisi Tsika took home R660000 and would receive a performance bonus of 20%. Municipal directors were paid salaries of R600000, also with a 20% bonus;

” The Nkonkobe municipality, incorporating Alice, Fort Beaufort, Middledrift and Seymour, had set aside more than R3-million in councillors’ benefits for the coming year, and only R10,5-million for basic services for residents.

“It is unjustifiable for senior officials to award themselves huge salaries, denying the small worker a minimum living wage,” Samwu chief bargaining officer Dale Forbes told the Mail & Guardian.

“One of privatisation’s messages is the need to cut costs by retrenching workers, while a major drain on funds is senior officials’ huge pay packets.”

Salga chief negotiator Dan Seemise defended salaries paid to some members, saying they were necessary to attract talent from the private sector.

Other Salga sources said “a small clique” in the union had pushed for the strike, and that “a good number of workers had been willing to accept the pay offer”.

Seemise said there would be no further engagement with the union. He said the 10% demand, if met, could lead to rates increases of up to 21%, and a ratepayers’ revolt.

Minister of Local Government Sydney Mufamadi has not gone public on the strike. But given his concern about the state of local government finances, he is unlikely to favour strike action.

In a surprising show of support for the workers, Minister of Labour Membathisi Mdladlana rebuked Salga for its uncompromising stand, accusing it of arrogance. Mdladlana said Salga was obliged to go back to the negotiating table.