Chitungwiza to lay off 400

CHITUNGWIZA Municipality has given its workers a voluntary retrenchment option ahead of the forced exercise to be implemented soon.

The workers are expected to have submitted their application letters on or before July 24.

Currently, the council has an establishment of 1 134 workers and is set to lay off close to 400 excess staff.

The local authority obtained a $250 000 loan from FBC to go towards the retrenchment.

In a circular (No. 3 of 2017) issued by the Town Clerk, Mr George Makunde, on July 4, council says the retrenchment exercise follows the approval of the 2014 organogram rightsizing the organisation.

“Following the approved organogram of 2014 which saw the staff establishment being reduced to 846 and the subsequent termination of employment contracts to some of the excess labour in August 2015, please be advised that the municipality is continuing with rationalisation of staff,” said Mr Makunde.

“In view of the ongoing staff rationalisation, the municipality is hereby inviting all interested employees to apply for voluntary retrenchment.

“Management will consider applications as they come and employees will be allowed to proceed on retrenchment upon approval by management.”

This follows a recommendation by the three-member caretaker commission to the council chaired by Mr Madzudzo Pawadyira to right-size the organisation as it is struggling to balance its wage bill and improve service delivery.

“The retrenchment is done on purposes for reduction of expenditure, efficiency and effectiveness. The municipality is currently in serious financial difficulties being evidenced by its failure to pay salaries on time, as well as failure to fulfil its mandate on service delivery.

“To date, we have so many outstanding financial obligations and the institution is owed a substantial amount by its debtors,” he said.

Mr Makunde said the retrenchment package provides two weeks’ salary for every year served multiplied by the number of years served as provided for in Section 12C (2) of the Labour Amendment Act, No. 5 of 2015.

“It will include relocation allowance in the form of transport to any destination in Zimbabwe within three months of retrenchment, free treatment for two years from the date of retrenchment at council clinics in line with the current policy and funeral assistance for two years from the date of retrenchment.

“Pension benefits will be calculated and paid separately in terms of the pension fund regulations,” Mr Makunde said.