Johannesburg adds 700 managers as city struggles to pay bills

The City of Johannesburg (CoJ) plans to add 1 000 managers and professionals to its workforce, according to budget documents, even as the SA’s biggest metro fails to pay bills for power and fuel supplies.

The decision comes as the South African Finance Minister Enoch Godongwana tells the city to address a wage bill he says it can’t afford.

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In an April letter to Johannesburg Mayor Dada Morero, Godongwana threatened to withdraw state funding unless the authorities cancel plans to boost municipal-employee pay by R10.3 billion ($620 million). That threat was reiterated last week, News24 reported on Thursday, 24 June.

CoJ plans to increase its workforce by 4.4%, or about 1 700 people, this financial year to more than 40 000. Included in that is a plan to add 695 municipal and senior managers and 308 “professionals,” a review of its budget documents shows.

Total pay packages — including allowances and performance bonuses — for senior managers range from R1.9 million to R4.4 million, multiples of the average household income of R204,359.

Still, the National Treasury said in a response to questions its primary concern was the broader wage bill as a result of the agreement with labour unions rather than “the filling of critical funded vacant positions.”

“The National Treasury’s concern was the increase in the wage bill in relation to the politically facilitated wage settlement agreement,” it said.

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Johannesburg’s dominant labour union is the South African Municipal Workers Union, which is part of a labour federation that’s in a political alliance with the African National Congress, the party that leads Johannesburg’s ruling coalition. Both Morero and Godongwana are ANC members.

The city didn’t respond to requests for comment.

“The city’s failure to provide a clear explanation for the financial impact and operational necessity of these appointments raises serious concerns,” the Democratic Alliance, the main opposition party in the city council, said in response to questions.

Since Godongwana sent his letter on April 23 to Morero the city has been in talks with the National Treasury about its financial management. Still, senior city officials have repeatedly said they won’t cancel the wage agreement.

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