Harare to slash wage bill by $2m

HARARE - The City of Harare is looking to slash its wage bill by $2 million every month by laying off over 1 000 employees.

This is part of the city’s efforts to meet Local Government minister Ignatius Chombo’s directive to reduce its wage bill to only 30 percent of its budget.

Harare mayor Bernard Manyenyeni said exact figures which the city was going to spend on retrenchment packages were not yet known as council was yet to finalise the retrenchment process.

“We have not worked out how much the retrenchment will cost because the process is yet to be finalised but I can tell you we  are targeting to save at least $2 million every month,” Manyenyeni said.

Human resources committee chairperson Wellington Chikombo said council was looking to lay off employees who were over 60 years, or retire them in line with government policy.

“We are not firing workers but it is a way of retiring them because they are over 60 years,” Chikombo told the Daily News.

According to minutes of the human resources committee, there are over 1 330 employees in council service, including in the department of Harare Water who are aged 60 years and above.

The committee also resolved that “council authorises the town clerk to carry out a further rationalisation exercise of council’s functions with a view of cutting costs and improve synergies.”

So far council has laid off six directors, city treasurer Misheck Mubvumbi, business development manager Cosmas Zvikaramba, housing and community services manager Justine Chivavaya, urban planning services manager Psychology Chiwanga, health director Stanley Mungofa and director of amenities Dombo Chibanda.

At least 10 out of 45 middle managers will also lose their jobs.

The city has a total workforce of 6 348.

 

Comments (1)

By so doing you guys must employ young people

Abraham Sanga - 27 March 2014

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