BCM workers to receive thousands each in backpay

BUFFALO City Metro has allocated close to half a billion rands for salary increments and backpay for thousands of its employees in the current financial year.

The council on Wednesday approved the standardisation of salaries in the metro following prolonged negotiations with unions – the South African Municipal Workers Union (Samwu) and the Independent Municipal and Allied Trade Union (Imatu).

Although the R456-million commitment is less than Samwu initially demanded, workers yesterday expressed happiness over the newly approved agreement.

The matter was discussed behind closed doors in council on Wednesday as a confidential matter.

However, Times Media has seen the report which states that R3 000 will be paid to each BCM employee a month as an ongoing commitment from July 1 to June 30 next year.

This will cost the metro R195- million for the financial year. The amount will increase annually.

A commitment of R2 000 from March 1 to June 30 this year will also be paid to each employee, amounting to R44-million.

The biggest amount will go towards the employees’ backpay, which will be a once-off payment of R40 000 each to those who joined BCM before 2014. Those who joined after 2014 will receive backpay based on the number of years they have been there.

The metro believes funds can come from several sources:

ý Vacant funded posts are expected to generate about R44million for the 2015 financial year and R100-million annually from July 1 to June 30 next year, except for critical posts;

ý General expenses to be reduced by an average of 8% on the 2016-17 adjustment budget, which is expected to generate about R60-million;

ý The scarce skills allowance and additional responsibility allowances would need to undergo a policy review and;

ý Overtime would have to be reduced by 50%.

Acting city manager Bob Naidoo’s report read that funding for the backpay would be sourced from existing cash resources, but only temporarily.

“However, the funding of this needs to be done by future tariff impacts.

“It is envisaged that the return will be performed over a five-year period, suggesting the operating budget would need to have a surplus of R40-million per year over the next five years.”

Samwu BCM regional secretary Zolani Ndlela said: “We welcome the council resolution as Samwu although it is not what we initially wanted.

“We wanted to be on the same level as our colleagues in the Nelson Mandela Metro. We demanded the backpay should be R114 000, but we reached a compromise because we also did not want to bankrupt the metro.”

The DA, COPE and ACDP also welcomed the resolution.