Municipality introduces shift-based reforms to improve services and cut costs
Municipality has enforced shift reforms and a six-day work week to reduce overtime costs and boost service delivery efficiency.
The Newcastle Municipality is undergoing major operational changes after it racked up an eye-watering R41 million in overtime payments.
The reforms, which came onto effect July 1, will include the introduction of a six-day work week and a shift-based system, primarily affecting departments under Community Services and Technical Services
The drastic reforms come after critical findings by the Auditor-General and recommendations from KZN COGTA (KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs).
Both bodies flagged the municipality’s excessive overtime costs as unsustainable and called for immediate action to improve efficiency, compliance, and cost control.
“These changes aren’t just about saving money. They’re about delivering better, more reliable services within the bounds of good governance,” remarked Municipal Spokesperson Mthandeni Myende.
Myende explained that the reforms are being implemented in line with Section 10 of the Basic Conditions of Employment Act and supported by the KZN Conditions of Service Collective Agreement.
The municipality stressed that both major unions, SAMWU and IMATU, participated in the decision-making process through the Provincial Bargaining Chambers.
Before implementation, the Municipality held an extensive consultative process involving bilateral meetings between management and unions; deliberations within the Local Labour Forum; Department-level discussions facilitated by the Human Resources Directorate and the submission of signed employee alignment declarations to Human Resources.
Officials have reiterated that the restructuring is designed not only to curb unnecessary spending, but also to ensure the municipality can retain jobs while improving governance and productivity.
A formal council resolution endorsed the operational changes, with a promise that funds previously allocated to overtime will now be redirected toward core service delivery needs, specifically, repairing roads, storm water systems, water infrastructure, and sewer networks.
“This marks a new chapter for how we function as a local government,” said Myende. “It’s no longer business as usual. Our operations must reflect the needs of the people we serve.”
Municipal employees are encouraged to support the reforms, and communities are urged to report any disruptive activities such as go-slows, sabotage, or unlawful actions to the Municipality or the South African Police Service (SAPS).
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