HomeNewsMarondera to shell out $1,9m on retrenchment packages

Marondera to shell out $1,9m on retrenchment packages

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THE cash-strapped Marondera Municipality recently retrenched about 90 workers and plans to lay off another 100 to keep its wage bill within the 70:30% ratio prescribed by Local Government minister Ignatius Chombo.

By Jairos Saunyama

Marondera mayor Anthony Makwindi told journalists on Friday that the local authority was now sourcing for $1,9 million required for the exercise.

“Council retrenched 89 workers both those on contracts and permanent basis. We require about $1,9m as their retrenchment package and the local authority is currently trying to raise the money to pay off the affected workers. As for now, we do not have the money, but we will give them as soon as we get it,” Makwindi said.

He revealed that government had refused to approve the council’s 2015 budget demanding a massive slash in salary costs for the estimated 400 employees.

Marondera’s salary bill currently stands at $300 000 each month against monthly revenue inflow of $320 000.

Recently, council offered a voluntary retrenchment opportunity, but only 42 workers grabbed the offer.

A reliable source told this paper that three of the retrenched managers had gobbled more than $150 000 in packages.

“Council is retrenching, but I do not know where they will get the money from. So far, three managers have claimed more than $150 000 with one of them walking away with $92 000,” the source said.

Chombo recently said that his ministry would not approve council’s 2015 budget presented without complying with the 70:30% ratio.

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