City on salary spree Staff get second increase in a year

THE Windhoek City Council has approved another salary hike for its employees this year despite a market survey indicating that its lowest paid employees earn as much as 51 per cent more than other companies in the public sector.

The increases for its 1 454 employees will swell the salary bill by N$19,4 million this financial year. Last year the salary bill was N$320 million.Whilst forking out for increases in water and electricity costs, ratepayers will also support a five per cent across-the-board increase in basic salaries for municipal employees.In addition, employees’ housing benefits will be upped by as much as 33 per cent depending on their basic salaries.The increases in the municipal salary bill – which council puts at 32 per cent of its total operational costs – will be funded from assessment rates.It is the second salary increase in the last year for municipal employees – which last year ranged between five per cent for lower levels and as much as 14 per cent for top management.The City contributes 60 per cent towards employees’ medical aid funds.The two unions representing workers at the municipality, Napwu and Laun, even proposed a 14th cheque for their members at wage negotiations, as well as increases in medical aid contributions.The Chairperson of the Management Committee, Bjorn von Finckenstein, yesterday confirmed to The Namibian that a special council meeting was held on Friday to approve this year’s increases, but said he could not comment any further on the salary discussions.”To safeguard the interests of the employer and employees these things are not discussed in the open,” he said.But insiders say the council agreed on the increase based on the expected increase in the inflation rate from around 4,1 per cent at present to six per cent by the end of the year and a further one per cent next year.’INAPPROPRIATE’ Approached for comment, the two opposition parties on the council, the CoD and RP, said yesterday that they did not vote in favour of the increases, given the burden on ratepayers who already faces utility increases.The CoD’s Herbert Schulz said the move was “inappropriate” given increased costs to the consumer for general commodities.”I am not one for underpaying people.But then the service must be there,” said Schulz, making the point that the municipality was primarily a service organisation.The RP’s Nico Smit said it was unacceptable to him that management levels were receiving a second salary increase within six months without any performance appraisal being done.The Windhoek Municipality does not have a performance management system in place.”Compared to parastatals, the indications are that people are well paid.We can’t afford an increment every year.To me this is not acceptable: whether you are working or not, just to receive an increment across the board,” Smit said.Smit said the council was responsible for working with ratepayers’ money and had to consider their needs first.Windhoek residents have already started paying 12 per cent more for electricity, another 12 per cent on the basic charge for water and an additional 10 per cent on consumption following increases by bulk suppliers NamPower and NamWater.Sewerage costs were also hiked – by five per cent – to cover the costs of a new treatment plant at Ujams.Over and above this, Mayor Matheus Shikongo has appealed for a Government subsidy, saying the council could not cope with catering for the needs of the capital’s growing population.ABOVE AVERAGE With the exception of employees in the highest category according to the Patterson Grading system (E band), the City pays all its staff above the median band of the same grading system in the public sector, both in terms of basic salary and the total cost of employment.In terms of the grading system used by the municipality, each salary scale contains three notches.A salary survey by PE Corporate Services SA shows that the municipality’s employees in the lowest notch of the lowest salary scales A and B earn between 34 and 51 per cent more than the market average.In the middle salary range C, employees earn between 28 and 33 per cent more than at parastatals.For example, a municipal employee at supervisory level earns a total salary package of N$281 616 in the lowest notch of scale C5.An employee in the country’s para­statals at this level would only earn around N$186 730.Middle management in the category D earn as much as 49 per cent more than their equals in other public companies.Municipal salaries in the lowest notches of category D range between N$389 417 per annum (D1) to N$512 582 (D3) per annum compared to a range of N$220 827 and N$276 156 at other companies.The highest employment level, category E, under which the City’s Strategic Executives and CEO fall, have the least discrepancy in what they earn compared to their equals elsewhere – earning only four per cent more in the lowest notch (N$640 500 a year), but less in the middle and upper notches.Last year the salary bill was N$320 million.Whilst forking out for increases in water and electricity costs, ratepayers will also support a five per cent across-the-board increase in basic salaries for municipal employees.In addition, employees’ housing benefits will be upped by as much as 33 per cent depending on their basic salaries.The increases in the municipal salary bill – which council puts at 32 per cent of its total operational costs – will be funded from assessment rates.It is the second salary increase in the last year for municipal employees – which last year ranged between five per cent for lower levels and as much as 14 per cent for top management.The City contributes 60 per cent towards employees’ medical aid funds.The two unions representing workers at the municipality, Napwu and Laun, even proposed a 14th cheque for their members at wage negotiations, as well as increases in medical aid contributions. The Chairperson of the Management Committee, Bjorn von Finckenstein, yesterday confirmed to The Namibian that a special council meeting was held on Friday to approve this year’s increases, but said he could not comment any further on the salary discussions.”To safeguard the interests of the employer and employees these things are not discussed in the open,” he said.But insiders say the council agreed on the increase based on the expected increase in the inflation rate from around 4,1 per cent at present to six per cent by the end of the year and a further one per cent next year.’INAPPROPRIATE’ Approached for comment, the two opposition parties on the council, the CoD and RP, said yesterday that they did not vote in favour of the increases, given the burden on ratepayers who already faces utility increases.The CoD’s Herbert Schulz said the move was “inappropriate” given increased costs to the consumer for general commodities.”I am not one for underpaying people.But then the service must be there,” said Schulz, making the point that the municipality was primarily a service organisation.The RP’s Nico Smit said it was unacceptable to him that management levels were receiving a second salary increase within six months without any performance appraisal being done.The Windhoek Municipality does not have a performance management system in place.”Compared to parastatals, the indications are that people are well paid.We can’t afford an increment every year.To me this is not acceptable: whether you are working or not, just to receive an increment across the board,” Smit said.Smit said the council was responsible for working with ratepayers’ money and had to consider their needs first.Windhoek residents have already started paying 12 per cent more for electricity, another 12 per cent on the basic charge for water and an additional 10 per cent on consumption following increases by bulk suppliers NamPower and NamWater.Sewerage costs were also hiked – by five per cent – to cover the costs of a new treatment plant at Ujams.Over and above this, Mayor Matheus Shikongo has appealed for a Government subsidy, saying the council could not cope with catering for the needs of the capital’s growing population. ABOV
E AVERAGE With the exception of employees in the highest category according to the Patterson Grading system (E band), the City pays all its staff above the median band of the same grading system in the public sector, both in terms of basic salary and the total cost of employment.In terms of the grading system used by the municipality, each salary scale contains three notches.A salary survey by PE Corporate Services SA shows that the municipality’s employees in the lowest notch of the lowest salary scales A and B earn between 34 and 51 per cent more than the market average.In the middle salary range C, employees earn between 28 and 33 per cent more than at parastatals.For example, a municipal employee at supervisory level earns a total salary package of N$281 616 in the lowest notch of scale C5.An employee in the country’s para­statals at this level would only earn around N$186 730.Middle management in the category D earn as much as 49 per cent more than their equals in other public companies.Municipal salaries in the lowest notches of category D range between N$389 417 per annum (D1) to N$512 582 (D3) per annum compared to a range of N$220 827 and N$276 156 at other companies.The highest employment level, category E, under which the City’s Strategic Executives and CEO fall, have the least discrepancy in what they earn compared to their equals elsewhere – earning only four per cent more in the lowest notch (N$640 500 a year), but less in the middle and upper notches.