The document revealed that at last week’s meeting, Exco accepted the proposal to increase the salaries of the deputy city manager (DCM) for Community and Emergency Services, Dr Musa Gumede (pictured), and DCM for Corporate and Human Resources, KA Makhathini, from R2 055 005 to R2 601 272 each.
Durban – THE eThekwini executive committee wants to increase the salaries of three recently appointed deputy city managers by a total of R2.1 million, and is justifying the move by saying their subordinates earn more than they do due to “salary creep”.
In the document requesting the increases, which The Mercury has seen, concerns are raised that succession planning could be at risk if the salaries are not adjusted.
Exco used the broad interpretation of Chapter 4 of the Municipal Systems Act to hold a closed-door meeting to discuss the salary increases last week.
The City is obliged to publicise the salaries of these positions in its annual financial statements.
It did not respond to questions in this regard.
The document revealed that at last week’s meeting, Exco accepted the proposal to increase the salaries of the deputy city manager (DCM) for Community and Emergency Services, Dr Musa Gumede, and DCM for Corporate and Human Resources, KA Makhathini, from R2 055 005 to R2 601 272 each, while the salary of the DCM for Trading Services, AS Makhanya, is set to increase from R1 026 342 to R2 055 005.
The unit heads reporting to the trio earn between R2.3m and R2.8m per annum.
The DCMs, who report directly to acting city manager Sipho Cele, were appointed to their positions between March and August. The increases were expected to be backdated to their date of appointment.
The increases are well within the range outlined in the Government Gazette titled the “Upper Limits of Total Remuneration Payable to Municipal Managers and Managers Directly Accountable to Municipal Managers”, as gazetted by Minister of Co-operative Governance and Traditional Affairs, Dr Nkosazana Dlamini Zuma, on March14 this year.
However, the way in which the earnings were presented to council did not give a complete picture of the overall earnings that come with the positions.
For instance, according to the 2020/21 eThekwini Medium-Term Revenue and Expenditure Framework (MTREF), the post now held by Gumede, who was appointed in May, has been budgeted to earn a total package of R4 149 825, which includes an allowance of R1 782 082 and a performance bonus of R154 783.
The same figure applies to the post of human resources, now held by Makhathini, while the trading services package now held by Makhanya came in at R3 421 414.
It is believed that these numbers were what their predecessors would have earned. However, the average total package of the six deputy city manager positions listed in the budget comes to R3.9m.
The request for the increases also raises questions why the salaries were not finalised at the time of the appointments, which is standard practice and allowed for in the same Government Gazette.
In Gazette 43122, it states that the “offer of remuneration on appointment will be determined by the competencies, qualifications, experiences and knowledge of the candidate considered for appointment”.
The Gazette criteria breaks down appointments into three salary categories: minimum, midpoint and maximum, with variances depending on the grade of the municipality.
EThekwini, like most metros, is considered to be on the highest possible grade of 10. This is calculated by scoring the municipality on population size, the size of the municipal budget and the municipal equitable share.
On grade 10, the minimum, midpoint, and maximum limits for managers who report directly to the municipal manager are set at R2 055 005, R2 601 272 and R3 147 538, respectively.
All positions require relevant qualifications, and persons who have “acquired a competent achievement level as measured against a competency framework”. The final deciding factor is years of service.
However, it appears that the limits are treated as guidelines instead of rules. As an example, according to the eThekwini MTREF 2020/21, the city’s DCM for Economic Development and Planning, Phillip Sithole, earns a basic salary of R4 082 188. With allowances and performance bonus this rises to R4794 051 per annum.
Noticeably, the municipality is not obliged, according to the Gazette, to pay the amounts prescribed and can pay less.
According to the motivation presented by Cele for the increases, his request for a waiver to increase the salaries of the fixed-term employees was, except for that of Makhanya, because they had previously earned more at the municipality and that staff reporting to them currently earned more than them. Makhanya’s increase is due to it being well below the minimum range, as published in the gazette.
“It is evident from the analysis that Dr Gumede and Ms Makhathini took a reduction in their total remuneration packages relative to their previous total remuneration packages as level 3 senior managers (within the city), commensurate with the enormous added responsibilities as deputy city manager,” said Cele.
“The resultant salary creep affects all three deputy city managers as their unit heads, who fall within the scope of the bargaining council and who report to them, are being paid a total remuneration package in excess of the deputy city manager packages. Apart from the fact that this situation is contrary to the Employment Equity Act Code of Good Practice, it also affects succession and talent management planning of the City since senior managers are not keen to be promoted or appointed to deputy city managers as their total remuneration package will be substantially reduced.
“Further, the position is for a fixed term five-year contract with no guarantee of continued future employment,” said Cele.
He is now expected to approach KwaZulu-Natal MEC for Cooperative Governance and Traditional Affairs, Sipho Hlomuka, in a bid to get his support for the waiver.
The Mercury