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Oliver Kazunga Senior Business Reporter
THE Bulawayo City Council has announced plans to restructure some of its departments as part of cost cutting measures. Mayor Councillor Martin Moyo told Business Chronicle in an interview after the unveiling of the city’s 2016 budget last Wednesday that councillors would soon meet to map the way forward on the issue.
He said the local authority was looking at outsourcing some of its critical services such as street cleaning. “Although the recent Supreme Court ruling provided an opportunity to give three months notice on termination of employment contract, the city council couldn’t take that route because we felt it was too harsh on the part of employees,” said Clr Moyo.
“Actually, we’ll soon be sitting down as council to look at how we can restructure our entities with a view to give some of them autonomy to operate as stand-alone entities who would meet employment costs for their workers. “Instead of BCC paying for their salaries, we’ll now be paying entities for the service rendered and not salaries. By doing so, we’ll be able to reduce our wage bill.”
Clr Moyo said council-run health facilities, for instance, employed nurses that were being paid from the local authority’s coffers. “In our city council run clinics we employ nurses who’re supposed to be paid by the government and by our standards, our salary grading is high, so we would want a scenario whereby we would restructure some of our entities so that we create autonomy on their part.
“By doing so, it means the entities will now be able to meet salary bills for their staff and as city council we’ll engage them and pay for services rendered,” Moyo explained. While availing the 2016 budget, the council’s finance and economic development committee chairperson, Councillor James Sithole, said total labour costs would amount to $59 million against a stand-still revenue budget of $107.6 million.
The city council’s total budget for next year would remain flat at $153.6 million. Council said it has resolved to maintain tariffs for 2015 citing the need to ease pressure on ratepayers taking into consideration the prevailing macro-economic challenges.
Online Reporter