THE challenges facing the City of Tshwane in recent months, made worse by the ongoing unlawful and unprotected strike action, have led management to decide to pay the 13th cheque to its employees over three months.
According to Tshwane city manager of Tshwane Johann Mettler, the severe 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.
This was originally scheduled for processing at the end of November 2023, as has always been the norm.
"In the first three months of the new financial year, which started in July, the City didn't achieve its revenue-collection target. In July 2023, the revenue collection rate reached 82,02%, but it dropped to 76,08% in August 2023.
"This shortfall has significantly impacted the city's ability to meet its financial obligations, with particular concern for payments to bulk supply creditors, such as Rand Water and Eskom," he said.
Mettler said that even though the budget process does allocate funds for the 13th cheque payment for all employees, the impact on cash flow depends on actual revenue collection.
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Furthermore, revenue collection falls short of the projected year-to-date target.
"I must draw attention to the fact that my actions are not willy-nilly. They are informed by Section 62 (1) (a) of the Municipal Finance Management Act (MFMA), which demands, especially under the financial circumstances the City finds itself in, that the accounting officer of a municipality is responsible for managing the financial administration of the municipality," said Mettler.
Furthermore, he said it's against the afore-mentioned circumstances that the city is forced to make this difficult and painful decision to pay the 13th cheque in phases – over three months, the total amount of R565 166,041 to all its employees, from Task Level 1 – 22.
He said the payments will be staggered as follows: employees on Level 1-10 will receive the full 13th cheque at the end of November 2023, as has been the norm over the years, and employees on Level 11-15 will receive the full 13th cheque at the end of December 2023.
While employees on Level 16-22 will receive the entire 13th cheque at the end of January 2024.
He said last Wednesday, the city manager had a meeting with both the Independent Municipal and Allied.
Trade Union and the South African Municipal Workers Union (Samwu) to alert and inform them of this development.
"I'd like to sincerely apologise to some of the personnel affected by this decision. However, it had to be taken to keep the city afloat," said Mettler.
Samwu Tshwane regional secretary Precious Theledi said: "The workers are not happy with the 13th cheques and need the 13th cheque to be paid in November."
She said the increase is still under review, and they need the increment.
