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Johannesburg Cannot Afford a R10,3 Billion Salary Agreement

The R10,3 billion salary agreement between the ANC-led coalition in the Johannesburg Metro Council and the South African Municipal Workers’ Union (SAMWU), to be implemented over the next two years, is simply unaffordable given the Metro’s current financial position. Although Executive Mayor Dada Morero insists that the agreement is necessary to ensure employee satisfaction, the […]

The post Johannesburg cannot afford a R10,3 billion salary agreement appeared first on Freedom Front Plus.

The R10,3 billion salary agreement between the ANC-led coalition in the Johannesburg Metro Council and the South African Municipal Workers’ Union (SAMWU), to be implemented over the next two years, is simply unaffordable given the Metro’s current financial position.

Although Executive Mayor Dada Morero insists that the agreement is necessary to ensure employee satisfaction, the reality is that any organisation experiencing financial pressure has to make some difficult decisions.

Usually when a business is struggling financially, overhead costs are cut back, salary increases are often suspended and operations are streamlined to restore financial stability.

The latest report by the Auditor-General (AG), which indicates serious shortcomings in management and financial control, further underscores this reality.

The Metro received a qualified audit opinion, which once again points to weak internal control measures and poor financial management.

Among the most concerning findings were the losses suffered by key entities, such as non-revenue water losses of 44,7% amounting to approximately R3,8 billion.

City Power reported technical and non-technical losses of approximately 30%, valued at about R5,7 billion.

Johannesburg’s financial position has deteriorated significantly over the past five years, with a staggering R45,16 billion written off due to unauthorised, irregular, fruitless and wasteful expenditure.

The party implores Morero to reconsider the salary agreement, as R10,3 billion could be put to much better use addressing Johannesburg’s growing infrastructure backlog and improving service delivery to residents.

The Freedom Front Plus remains committed to sound, fair, clean and accountable governance.

Residents should register and vote for the Freedom Front Plus on 4 November to ensure that Johannesburg is entrusted to the hands of an honest and transparent administration.

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