Residents to fund City salary hikes

THE Windhoek City Council last night approved a five per cent across-the-board increase in basic salaries for its employees, pushing up the wage bill for this financial year by more than N$14,2 million.

The increases for its 1 658 employees inflated the City’s wage bill to N$347 million and is backdated to July 1. Employees at lower levels also received a 10 per cent increase on their transport allowances while the housing allowance for those at middle-management level will now be calculated at 40 per cent of their basic salary, up from 33 per cent last year.The increases will be funded from assessment rates.In the last financial year the salary bill of the Windhoek City Council swelled by N$19,4 million when employees’ housing benefits were upped by as much as 33 per cent depending on their basic salaries.The City contributes 60 per cent towards employees’ medical aid funds.The salaries will account for around 35 per cent of the Council’s total operational costs.The salaries have been approved by the two unions representing the workers at the municipality, the Namibia Public Workers’ Union and the Local Authorities Union of Namibia.The Namibian has seen documentary evidence in which a Napwu representative proposed a 14th cheque for their members at the meeting with the City Council management.Although the City’s lowest-paid employees earn as much as 51 per cent more than other companies in the public sector, the two unions complained that the cost of living was too high and their members needed more money.The City’s top management motivated the increases by citing the official inflation rate of around 4,4 per cent and the high price of fuel.At that meeting, the management also informed the unions that the Minister of Local Government John Pandeni “recommended at least a maximum of five per cent increase”.The latest increase has caused a huge uproar among the opposition councillors in the City of Windhoek.The Namibian has it on good authority that the opposition councillors were only presented with the documents for the proposed increases on Monday afternoon, while the law requires that it be done at least 72 hours before the meeting.The proposed salary increases were earlier approved by the Council’s Management Committee and passed by the Council in a special meeting last night.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 done by PE Corporate Services SA for the City Council last year 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 managers in 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 a year (D1) to N$512 582 (D3) a year, compared to a range of between 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.Employees at lower levels also received a 10 per cent increase on their transport allowances while the housing allowance for those at middle-management level will now be calculated at 40 per cent of their basic salary, up from 33 per cent last year.The increases will be funded from assessment rates.In the last financial year the salary bill of the Windhoek City Council swelled by N$19,4 million when employees’ housing benefits were upped by as much as 33 per cent depending on their basic salaries.The City contributes 60 per cent towards employees’ medical aid funds.The salaries will account for around 35 per cent of the Council’s total operational costs.The salaries have been approved by the two unions representing the workers at the municipality, the Namibia Public Workers’ Union and the Local Authorities Union of Namibia.The Namibian has seen documentary evidence in which a Napwu representative proposed a 14th cheque for their members at the meeting with the City Council management.Although the City’s lowest-paid employees earn as much as 51 per cent more than other companies in the public sector, the two unions complained that the cost of living was too high and their members needed more money.The City’s top management motivated the increases by citing the official inflation rate of around 4,4 per cent and the high price of fuel.At that meeting, the management also informed the unions that the Minister of Local Government John Pandeni “recommended at least a maximum of five per cent increase”.The latest increase has caused a huge uproar among the opposition councillors in the City of Windhoek.The Namibian has it on good authority that the opposition councillors were only presented with the documents for the proposed increases on Monday afternoon, while the law requires that it be done at least 72 hours before the meeting.The proposed salary increases were earlier approved by the Council’s Management Committee and passed by the Council in a special meeting last night.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 done by PE Corporate Services SA for the City Council last year 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 managers in 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 a year (D1) to N$512 582 (D3) a year, compared to a range of between 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.