adminThe employees have downed tools twice in the past two months demanding their outstanding salaries amid revelations that the cash-strapped council cannot afford the new $300 000 wage bill.
The local authority’s monthly revenue is less than $270 000.
According to a certificate of settlement from the Labour Court — Case Number- ML/14/06/12, which is in possession of Chronicle, the Zimbabwe Council Workers’ Union (Victoria Falls employees) took the Victoria Falls management to court after a dispute over non-payment of salaries for three months.
The case was referred to conciliation on 7 June and was heard by the Labour Officer Mr Edmos Mashumbwa on 13 June.
The employees had wanted council property attached to force management to settle their outstanding salaries.
Management, which has not paid the employees’ salaries for March, April and May was represented by the Town Treasurer, Mr Thembinkosi Khumalo while the employees where represented by the chairperson of the workers’ committee, Mrs E Ndlovu.
“. . . as resolved by agreement of the parties on the 13/06/12 and further that the terms of agreement as follows, salaries to be paid by grades for two months up to 17 July, inclusive of back pays for Grades B3 and B4.
June salary and the remaining back pays for Grade C will be finished by 6 August . . .,” reads part of the certificate of settlement.
Sources in management said trouble for the municipality started when the Labour Court ruled that the employees be given a 32 percent salary increase in August last year.
The source said as a result, the council wage bill sky-rocketed to $300 000 from about $170 000 for the 312 workers.
“The reality on the ground is that the municipality cannot afford the new salary bill. During salary bargaining, council indicated that it was comfortable with paying the workers between $120 and $168 salary increments depending on one’s grade but now has to pay between $150 and $220,” said the source.
The source said the local authority had applied for a $250 000 loan from a local bank but that would not make a difference.
“We applied for a loan two months ago and up to now nothing has materialised. Even if it is released, it will not even cover the salary bill which stands at more than $300 000,” said the official.
He said the municipality retained the 2011 budget that was $8,5 million — the same figure that council had for the 2010 budget.
“We retained the 2010/2011 budget because we are aware that the economy is not performing well. We were shocked by the ruling by the Labour Court president because we are really not performing. Council has no money as we are getting less than $300 000 from residents and other stakeholders monthly.
“It means if we are forced to stick to this wage bill we will fail to even purchase water chemicals, take our vehicles for repairs and service our debts,” said the source.
Contacted for comment, Mayor, Councillor Nkosilathi Jiyane said he was still to go through the ruling before commenting.
Online Reporter