Employees at financially-troubled Kadoma City Council have won a 50% salary increment arbitration award, a move that could sink the local authority deeper into the “red”.
Mayor Peter Matambo told NewsDay yesterday Kadoma’s $450 000 per month wage and salary bill could go up significantly if the arbitration award was effected.
Matambo said: “We were ordered to give our workers a 50% salary increase (in January) and honestly this local authority cannot afford such an increase on a strong currency like the (US) dollar — that is untenable.”
According to council management, before the award the lowest paid worker was getting a gross salary of $250 per month.
Council’s monthly revenue collection is around $650 000, hence the local authority’s fears that service delivery could likely suffer.
Matambo said currently they were engaging workers to find common ground before the increment could be implemented.
Apart from appealing to the workers, council has also approached the Local Government ministry seeking a bailout.
“We are largely in this position because government has failed to stimulate industrial growth in Kadoma and the entire country. They destroyed David Whitehead, Kadoma Board and Paper Mills, Maranatha and a host of other industries here as a result most of our ratepayers are unemployed and can’t meet their bills,” Matambo said.
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The 305-strong workforce has, however, dismissed council’s claims, accusing management led by town clerk Malvin Dondo of “pampering themselves” with hefty packages, to their detriment.
“Management consumes over 30% of the wage bill yet they constitute just 10% of the workforce, we are simply saying they should cut on their cake and give it to the workers,” said an employee who refused to be named.
