Fury as new payment system cuts salaries of local govt staff

The new payment system for Local Government workers has caused anger among workers whose salaries were cut in the process of rolling out the system.
While addressing the press last evening in Kampala, the leaders of the Uganda Local Government Workers Union (ULGWU), demanded that the underpayment in the pilot districts be rectified and the arrears cleared immediately.

The new payment system being piloted in selected districts across the country is dubbed “Human Capital Management System.”
“We demand that an order for payment of salary arrears to all affected members of the union whose salaries were reduced without administrative due process and all those who are being paid a lower scale contrary to appointment letters be issued to that effect,” Mr Hassan Mudiba Lwabayi , the ULGWU’s general secretary, said.

He added: “The newly introduced Human Capital Management System has illegally and unlawfully reduced salaries of cold chain officers and their assistants by placing them under administration, in spite of them being under the district health officers on appointment. The said system has also illegally and unlawful taken away remuneration of statisticians.”

Mr Mudiba said automated systems introduced by government should be designed in a way that respects laws, other than being a disservice to the people it is meant to 

Further, he said the union was considering legal action, demanding that judicial investigations be done on why their money is being cut without any explanation.
For example, cold chain technicians earn an equivalent of Shs2.2m under U5 per month but under the new payment system, they are being paid on the scale of U6 Upper, which is equivalent of Shs1.5m, according to Mr Mudiba.

The other example he gave was that of cold chain assistants appointed under salary scale of U7, who are supposed to earn a gross of Shs1.4m per month with a net pay of about Shs1m but in the new payment system, this category is now earning Shs268, 143.
Mr Ivan Nalungu, the Kumi District cold chain technician, said: “It is so hurting for someone to earn Shs430,000.” 
He said this is against public service standing order, which states that any cold chain technician who enters government payroll with a diploma should be on a salary scale of U5.

Mr Joseph Kakande Kiwanuka, the senior planner in Mubende District, also revealed that some planners were holding appointments for scientist but were being paid salary of nonscientists.
Efforts to get a comment from the Ministry of Public Service were futile as some of the known officials’ phone numbers were not available.

However, Mr Adam Bukenya, the Undersecretary in the Public Service ministry, said he could not comment on the matter but advised that the information will be provided by authorised people.

Background
Information available from the Ministry of Public Service shows that the Human Capital Management System was launched by the line minister, Mr Wilson Muruli Mukasa on November 17, 2021.
After the launch, the system  was rolled out in four mock sites  such as Ministry of Public Service, Public Service Commission, National Information Technology Authority Uganda and selected Local Government locations. 
The entities started using the system to process salary and pension payroll in December 2021. The system is now being piloted in selected districts in a phased manner.