Union voices concern about Tshwane’s decision to use workers’ 13th cheques as ‘piggy bank’

The Independent Municipal and Allied Trade Union (Imatu) says Tshwane is using a strategy to drive employees to resign or go on early retirement to ease its debt.

The union said it has become clear that Tshwane does not recognise and undermines union consultations after the decision to stagger employees’ Christmas bonuses totalling R565-million.

Imatu was due to provide its views to the city manager by 16:00 on October 11 regarding the decision to stagger Tshwane employee bonuses due and payable on November 26. However, the metro issued a statement that it had decided to stagger the payment of the 13th cheque to employees over a three-month period.

The metro gave financial constraints as the reason for splitting payments to employees.

The payments will be staggered as follows over the three months:

– Employees at levels 1-10 will be paid at the end of November.

– Employees at levels 11-15 will be paid at the end of December.

– Employees at levels 16-22 will be paid at the end of January.

Imatu Tshwane manager Lynette Burns-Coetzee said in principle that Tshwane would be in breach of contract if they staggered the payment of bonuses.

“We will never agree to the contracts being breached and we will explore all our legal avenues if Tshwane continues with this decision.

“Imatu is disheartened that the city manager brought out his official announcement literally 30 minutes after our letter was sent to him.”

On October 4, Tshwane gave both Imatu and the South African Municipal Workers Union (Samwu) until 16:00 on October 11 to respond to the decision to stagger bonuses.

Burns-Coetzee said Imatu had responded by 15:35.

“The official announcement of the city manager came out at 16:00. It is clear his official announcement was drafted long before the unions even answered him.

“We are being undermined and not recognised by Tshwane. They are pretending to consult with the unions, although consultation needs to be bona fide and with trust that parties will come to a consensus while taking all interests into account.”

She said Imatu was not in agreement with these bonuses after their members were consulted and it did not allow Tshwane to create a divide between the various categories of employees.

According to her, the union was concerned that Tshwane was contemplating the staggered payment of these bonuses and was prepared to use its employees as the metro’s bank.

“The timing of this issue is also of serious concern, as the employer shows zero regard for the financial prejudice, psychological well-being, and continued frustrations of employees.”

Burns-Coetzee said employees had suffered financial dire straights since the metro’s failure to budget for and pay the 5.4% increase for this financial year.

The union believed Tshwane was using a strategy to completely drain and demotivate employees to the point of utter exhaustion and no return.

She said these decisions would drive employees to resign or go on early retirement to ease Tshwane’s large staff bill.

“We do not believe you were transparent in the reasons for the proposed staggered payment of the bonuses. As far as Imatu is concerned, the bonus expenses are budgeted for on a yearly basis and provision is made for these expenses on a monthly or yearly basis.”

Burns-Coetzee said the union expected payments to be configured and paid on November 24, as per the contract of employment.

“Should you fail to pay as per the contract of employment, we will have no other option than to follow legal remedies available to us.”

City manager Johann Mettler reiterated that Tshwane was facing liquidity challenges which have worsened in recent months, raising a need to stagger the 13th cheque payment to its employees.

He said this was compounded by the ongoing unlawful strike action which began on July 24 and was crippling Tshwane’s unfunded budget.

“The dire current financial constraints, which include a cash flow deficit, declining revenue collection and heightened operational costs due to the ongoing illegal strike, are factors that unfortunately compelled the city to reconsider the payment of the 13th cheque to its employees.”

Mettler said in the first three months of the new financial year which started in July, Tshwane did not achieve its revenue-collection target.

“In July this year, the revenue collection rate reached 82.02%, but it dropped to 76.08% in August.

“This shortfall has significantly impacted adversely on the ability to meet our financial obligations, with particular concern for payments to bulk supply creditors, such as Rand Water and Eskom.

“I must draw attention to the fact that my actions are not willy-nilly. They are informed by the Municipal Finance Management Act which demands that the accounting officer of a municipality ensures the effective, efficient economical use of the municipality’s resources.”

He said the bonuses expected to be paid totalled R565 166 041 to all employees, from task levels 1-22.

“The city management is mindful that, this is the first in many years that it has had to arrive at this unpleasant decision, which completely goes against the norms and practises of 13th cheque payment to employees, as expected every year, which has been the end of November.”

Message from the City Manager on the staggering of the 13th cheque payment to employees. pic.twitter.com/K38mxaPjXH

— City of Tshwane (@CityTshwane) October 11, 2023

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