The Guadalajara Reporter

Chapala mayor adopts new tactic to cut payroll costs

After failing to meet his objective of convincing scores of municipal employees to quit their jobs, Chapala Mayor Joaquin Huerta this week announced a “Plan B” to avoid bringing down the axe with outright dismissals to reduce payroll expenses.

The ultimate aim is to permanently cut 150 to 200 positions out of the budget in order to keep the municipality on a sound financial footing.

City Treasurer Jose Guadalupe Dueñas revealed that Chapala is running with a deficit that will total around 30 million pesos this year.  Meeting the full goal in staff reductions would bring some relief to the tune of an estimated drop of 500,000 pesos in monthly expenses.  

Since mid-May staffers at all levels had an opportunity to voluntarily resign their posts, with full settlement of standard labor benefits plus an extra month’s pay. Only 14 individuals, among them two department chiefs, have gone for the deal to date.

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