COCT 6.25% Wage hike amidst COVID - Perspective
In response to the City who is deadest to remain with the 6.25% increase for employees. Employee Costs contributes to 36.5% of 2020/21 of the City’s budget.
Deputy Neilson to take accountability!
“Several corporate executives had taken salary cuts due to the global pandemic.”
No Sir! The draft budget was forcefully released prior to the pandemic lockdown. Although speculated, no one knew (or still knows) near enough to make any final decisions. Thus, the corporate executives did not take pay cuts due to the global pandemic. Then I guess the others which received between 30 and 50% increase is also due to the global pandemic? No change in their salaries between draft and final budget. In total, 13.02% average increase over 2019/20 for executives. But you DID change the budget for COVID afterwards.
Deputy Mayor Ian Neilson said the salary hike was agreed to two years ago.
“We are part of the national bargaining council which, in 2018, put a three-year deal together and the City is required, because it is part of that bargaining council, to implement that 6.25%.”
Two years ago we did not know that this country would be in a technical recession. Neither did we know two years ago that the global economy was to collapse. At present, they project that global GDP growth to fall to -3% for 2020.
Whilst Cape Town, being a tourism concentrated City now more than ever, are going to have the worst brunt of all metro’s. Many of our B&B and SMME’s are going to be forced to close doors. Unemployment will rise and the C
OCT will not be able to absorb the unemployed at the same rate anymore.
Yet Deputy Mayor, you still have the audacity to casually state: “The salary hike was agreed to two years ago.”
Did you go through the 2018 contract? Did you read the exemption clause? Did COCT request for exemption? I thought it wise to attach a clip just in case your contract has lost this page.
Projected CPI for 2020 by the MPC for May 2020 (prior to the final budget being presented) was 3.4%. This makes your 6.25% you defend a good 84% increase over projected CPI.
Originally Published by Mike Heyns | Smart Compact