The Democratic Alliance (DA) has urged the Acting City Manager (ACM) of the Nelson Mandela Bay Municipality to urgently seek a legal opinion on overtime payments to employees, which has unfairly prejudiced hundreds due to a significant rate reduction.
As of July, this year, the municipality has been paying overtime at the ‘threshold’ rate, regardless of the employee’s grade. The ‘threshold’ rate refers to the rate applicable to employees earning at or below a level set annually by the Minister of Employment and Labour. Employees earning at or below this level are entitled to claim overtime payment. However, all artisans and skilled workers in the municipality earn well above this threshold.
Employees were never consulted about the change, and they were never informed. This cannot be construed as fair. It is reckless and unprocedural. Employees’ payslips and bank accounts reflected the decision, and the municipality is now, understandably, struggling to placate a highly irate workforce.
We have written to the ACM requesting him to do all that is necessary to ensure the lawfulness of the metro’s approach to overtime payment, and to follow proper procedure in determining what is fair to both our residents and our employees.
[download letter here]
There are two reasons given for the change in overtime threshold, depending on whom you ask:
- Overtime payments are out of control, with some employees abusing the system. Costs have ballooned and must be brought under control.
- Alternatively, the Minister of Employment and Labour has set a legal threshold for overtime payments, which cannot be exceeded. The Department of Employment and Labour is warning the municipality that failure to comply may result in fines.
But it cannot be assumed that all municipal officials working overtime and claiming for that overtime are abusing the system. There is no doubt that some are, but these transgressors can be identified and managed.
The DA is as concerned as anyone about cutting costs and managing overtime so that it is used only when absolutely necessary and the metro must work within legal and financial constraints. But we also know we cannot burden residents with additional costs to cover overtime payments.
The DA remains committed to getting Nelson Mandela Bay working again and will do whatever it takes to make this a reality.