<\/p>\n
The City of Johannesburg (CoJ) plans to add 1 000 managers and professionals to its workforce, according to budget documents, even as the SA\u2019s biggest metro fails to pay bills for power and fuel supplies.<\/p>\n
The decision comes as the South African Finance Minister Enoch Godongwana tells the city to address a wage bill he says it can\u2019t afford.<\/p>\n
Read: Pothole, signal repairs halted as CoJ liquidity concerns mount<\/p>\n
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.<\/p>\n
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 \u201cprofessionals,\u201d a review of its budget documents shows.<\/p>\n
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Total pay packages \u2014 including allowances and performance bonuses \u2014 for senior managers range from R1.9 million to R4.4 million, multiples of the average household income of R204,359.<\/p>\n
\nStill, 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 \u201cthe filling of critical funded vacant positions.\u201d<\/p>\n<\/blockquote>\n
\u201cThe National Treasury\u2019s concern was the increase in the wage bill in relation to the politically facilitated wage settlement agreement,\u201d it said.<\/p>\n
Read:
Treasury threatens to cut City of Joburg funding
Eskom warns of power cuts to \u2018defaulting\u2019 City of Johannesburg
Ramaphosa taps former treasury budget chief as economic advisor<\/p>\nJohannesburg\u2019s dominant labour union is the South African Municipal Workers Union, which is part of a labour federation that\u2019s in a political alliance with the African National Congress, the party that leads Johannesburg\u2019s ruling coalition. Both Morero and Godongwana are ANC members.<\/p>\n
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\nThe city didn\u2019t respond to requests for comment.<\/p>\n<\/blockquote>\n
\u201cThe city\u2019s failure to provide a clear explanation for the financial impact and operational necessity of these appointments raises serious concerns,\u201d the Democratic Alliance, the main opposition party in the city council, said in response to questions.<\/p>\n
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\u2019t cancel the wage agreement.<\/p>\n
Read\/listen:
Solving Johannesburg\u2019s debt crisis is critical for both Eskom and CoJ
Joburg not absolved from its obligations to pay Eskom \u2013 Ramokgopa
Crisis committee plan for Eskom\u2019s municipal debt \u2018stalled\u2019<\/p>\n\u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\n
#Johannesburg #adds #managers #city #struggles #pay #bills<\/p>\n","protected":false},"excerpt":{"rendered":"
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