BCC wage bill spirals, gobbles 52 percent of budget

SALARIES are consuming more than half of the Bulawayo City Council (BCC) budget, exposing the local authority to significant financial strain as workers intensify pressure on management for another round of wage increases.

According to confidential council documents, the local authority’s salary-to-service delivery ratio currently stands at 52:48, against the mandatory 30:70 ratio prescribed under Government Statutory Instruments 170 of 2025 and 69 of 2026.

The worsening financial position has forced the council to explore non-monetary incentives for employees after resolving to enter salary negotiations with a “zero mandate”, citing suppressed revenue inflows and limited fiscal space.

The developments are contained in a report titled ‘Collective Bargaining: Request for a Mandate – Unions Position Paper First Quarter 2026’, presented by the human capital director, Mr Makhosi Tshalebwa, following submissions by the council’s two labour unions, the Zimbabwe Urban Councils Workers union (ZUCWU) and the Progressive Allied Municipal Workers union (PAMWU).

According to the report, the matter had initially been deferred pending approval of the 2026 budget by the parent Ministry of Local Government and Public Works.

However, after Government directed local authorities to reduce targeted tariffs and licence fees, council’s projected revenue was adversely affected.

“Following the approval of the budget by the parent ministry, Central Government authorised a mandatory reduction in targeted tariffs and licence fees in local authorities. Such a move had an adverse effect on the council’s budgeted income, hence this carries a ripple effect to council’s expenditure budget (payroll costs included),” reads part of the report.

The report further reveals that council engaged the finance director, Mr Tennyson Mpunzi, in March this year to assess whether the local authority could absorb additional labour costs. In a memorandum dated 23 March 2026 addressed to the human capital director, the finance director painted a bleak picture of the city’s financial position.

“The 2026 Revenue Budget is US$153 million, and the staff costs budget is US$78 million. The revenue budget salary to service costs ratio is 52:48 as opposed to 30:70 prescribed by the ministry. In terms of cash collections, staff costs take up 67 percent of the total cash collected,” reads the memorandum.

The report notes that the current wage bill structure is now in direct conflict with Government regulations, which require local authorities to prioritise service delivery expenditure over employment costs.

“It was further brought to the attention of the committee that budgetary performance in all local authorities was now measured and regulated in terms of Statutory Instruments (SI No.170 of 2025 and 69 of 2026), which inter alia stipulates the ratio of payroll costs and service delivery outlay at a 30:70 ratio, respectively,” reads the report.

Faced with declining revenue inflows and mounting operational pressures, council resolved to avoid committing to further salary increments during the current fiscal year.

“It was resolved to recommend: That Council’s delegation in the Permanent Negotiation Committee be hereby authorised to engage in collective bargaining with a zero mandate due to evident suppressed revenue inflows on a clear understanding that negotiations should shift and focus on the identification of non-monetary benefits during the current fiscal year (2026),” reads the report.

According to the document, council workers have been demanding upward salary adjustments, citing the rising cost of living and growing economic pressures.

“As a norm, we hereby forward our Position Paper for the first quarter, January-March 2026, requesting the following: that our basic salary be raised from US$233 to US$600 or equivalent and that our COLA be raised from US$192 to US$300. Hoping for a favourable response,” reads the position paper from ZUCWU.

PAMWU’s position paper, on the other hand, reads: “We hereby make a presentation for our position paper for the first quarter of 2026. Taking into consideration that the previous three requests were not fruitful, it is our hope that this time it shall yield positive results.

“We, therefore, request the following: a 67.5 percent increase in our basic salary and a 100 percent COLA increase, translating to a grade one raise from US$235 to US$470.”