admin
Municipal Reporter
Chitungwiza Town Council has resolved to borrow US$25 million from banks to pay its striking workers and has also engaged debt-collectors to aggressively pursue defaulters owing more than US$28 million in rates. The council intends to use US$11 million of the loan to settle outstanding salaries and the remainder to resuscitate service delivery which has continued to plummet since the industrial action began three weeks ago.
Municipal authorities last week sought borrowing powers from Government and now await the go-ahead to engage financial institutions.
They are also banking on debt-collectors to rake in outstanding sums from defaulting residents and businesses in the town of 350 000 people.
Chitungwiza Chamber Secretary Ms Priscilla Vengesai, in an interview with The Sunday Mail, said borrowing was the local authority’s only immediate route out of the quagmire.
She also confirmed that debt-collectors have since swooped on some debtors.
The council employees, who include refuse collectors, firemen as well as water and sewer engineers, embarked on job action on July 4 after going for 14 months without full salaries.
They returned to their respective work stations on July 11 and invariably began sit-ins and go-slows. Service delivery has been the heaviest casualty with raw sewage flowing on the streets and garbage piling up.
The 1 600-strong workforce accuses its employer of making lavish vehicle purchases while workers fail to access basics such as healthcare.
Most employees are now vending and borrowing to make ends meet, according to Zimbabwe Urban Councils Workers’ Union chairman Mr Ephraim Katsina.
Council authorities, in turn, argue that the employees brought the situation on themselves by advocating an unsustainable 132 percent salary hike with previous management.
The municipality is said to be getting less than US$1 million in monthly revenue against a US$1,4 million wage bill and a potential revenue base of US$2,4 million.
Mr Katsina said: “We are concerned about the health of our members. Some of them have approached council with letters from doctors for assistance, but council has not been assisting them.”
Ms Vengesai said the workers were being unreasonable.
“They are forgetting that they contributed to the problem after they negotiated a 132 percent salary increment with the past management.
“The workers are refusing a reversal of the increment and retrenchment. What do they expect us to do?”
Tinaye Agere
Online Reporter