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Limpopo premier Stan Mathabatha with Zweli Mkhize and Thoko Didiza
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Fury over boss' hefty pay hike

By Alex Matlala | Jul 13, 2010 | COMMENTS [ 0 ]

EMPLOYEES at the Limpopo Economic Development Enterprise have downed tools over a pay dispute.

The workers are also incensed that enterprise managing director Stan Mathabatha gave himself a hefty salary increase.

His annual salary now stands at R2,5million.

The disgruntled workers embarked on a go-slow last Thursday and a fully fledged strike started yesterday in five regions of the province.

The workers are demanding a 12percent salary increase across the board and performance bonuses. But the employer is offering a 10percent raise.

Provincial secretary for the National Education, Health and Allied Workers Union, Richard Monyela, said the strike was precipitated by allegations that salaries for certain executives sky rocketed during the 2008/9 financial year while those of ordinary workers remained unchanged.

According to the 2009 annual report in possession of Sowetan, the salary of Mathabatha was R1585750 in 2008, including emoluments, performance bonus and travelling allowance.

It was then increased to R2528171 the following year.

The report further indicates that eight other executive managers shared a total of R14million per annum in the same year

Ironically, the enterprise is allegedly making a profit of about R124million a year but is currently running on an overdraft of R9million.

"This is so because those in power increased their salaries to millions of rand but are unable to offer only 2percent difference to the workers," said Monyela.

Speaking to Sowetan yesterday, Mathabatha said he could not see anything wrong with his salary.

He said management was hoping to meet with the union to try to avert the strike action.

He said management had a new offer in store for the workers but declined to go into details.

He also said his salary and that of directors was determined by the MEC for economic, development, environmental and tourism.


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