Financial crisis prompts Tshwane to pay employees 13th cheque in phases

The City of Tshwane says not all its employees will receive their 13th cheque at the end of November as usual, as some will be paid theirs at the end of December or January. 

The decision to stagger the payments was brought on by the liquidity crisis in Tshwane in recent months, compounded by the ongoing “crippling, unlawful and unprotected strike” by some municipal employees.

“The dire financial constraints, which include a cash-flow deficit, declining revenue collection and heightened operational costs caused by the ongoing illegal strike, are factors that unfortunately compelled the city to reconsider the payment of the 13th cheque to its employees, which was originally scheduled for processing at the end of November, as has always been the norm,” said Tshwane city manager Johann Mettler.

Tshwane spokesperson Selby Bokaba said Mettler had had a meeting with both the Independent Municipal and Allied Trade Union (Imatu) and the South African Municipal Workers Union (Samwu) last Wednesday to inform them of the development.

“The city management is mindful that this is the first time in many years that it has had to arrive at this unpleasant decision, which completely goes against the norms and practices of 13th cheque payment to employees which has always been at the end of November,” Bokaba said.

Bokaba said in the first three months of the new financial year, which started in July, the city did not achieve its revenue-collection target.

In July the revenue collection rate reached 82.02% but dropped to 76.08% in August.

“This shortfall has significantly affected the city's ability to meet its financial obligations, with particular concern for payments to bulk supply creditors, such as Rand Water and Eskom,” Bokaba said.

“Notwithstanding that the budget process does allocate funds for the 13th cheque payment for all employees, the impact on cash flow depends on actual revenue collection. Presently, revenue collection falls short of the projected year-to-date target.”

The city said employees on levels 1-10 will receive their 13th cheque at the end of November, as normal. Employees on levels 11-15 will receive theirs at the end of December, while employees on levels 16-22 will receive their 13th cheque at the end of January.

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