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It is in this regard that Business Editor Victoria Ruzvidzo (VR) sought to engage RBZ Governor Dr Gideon Gono (GG) on the subject.
VR: Can you give us a background to the central bank’s retrenchment exercise?
GG: Our Parliament, on 31 March, 2010 passed legislation which curtailed and abolished Treasury’s (or Ministry of Finance’s) directives to the Central Bank to engage in quasi-fiscal activities of the past.
This led to the refocusing of the bank on core activities  centred around Bank Licensing, Supervision and Surveillance; Financial Markets and Sector Stability; Exchange Control; Economic Research and Policy Enhancement; Anti-Money Laundering and Prevention of Terrorist Financing; Bank to Government and Lender of last Resort Activities; Policy and Price Stability Advice to Government.
Subsequent to the passing of that Legislation, a new Board of Directors was appointed in April, 2010 and one of our first tasks was to re-align the Bank’s activities to its legal mandate and core-business, leading therefore to the drawing up of new internal organisational structures which are designed to meet the challenges of the Bank’s new mandate and operating environment.

VR: So how then did you go about it?
GG: It has to be appreciated that for me personally, this is not the first time I have had to deal with retrenchment exercises and challenges.
Having dealt with and successfully spearheaded almost six other retrenchment exercises before namely at Zimbabwe Development Bank (now Infrastructure Bank of Zimbabwe) in the late 1980s/early 1990’s; at CBZ in the mid and late 1990s; at University of Zimbabwe as Council Chairman in the late 1990s; and at the Zimbabwe Broadcasting Corporation (now ZBH) between 2000 and 2003 and also here at RBZ in 2004 and 2006, this assignment was, as those done before, predicated on the Chairman of the process adhering to the need for the negotiating parties to display the highest forms of integrity, honesty, openness to ideas and maintaining a degree of equitable fairness in relation to all parties to the negotiating process.
Adhering to the law and legal provisions of the process at every stage of the game; Being transparent with and in all your decision making processes to all parties to the negotiating process.
Remaining sensitive to genuine concerns of all parties to the negotiating process and giving each other reasonable timeframes for consultations with wider constituencies. 
Maintaining one’s “cool” even in times when everyone seems to be losing it, referring to precedents, facts and industry standards, Keeping all stakeholders and constituencies updated of progress, difficulties, challenges and proposed solutions. 
Showing humility from the pulpit without abdication of responsibility and demonstrating fearless leadership and decisiveness in the face of irrational behaviour or challenges that defy logic. 
Keeping your negotiations out of the press before conclusion.
This practical set of footsteps has helped us to deal with our situation in a remarkably non-confrontational way and away from mischievous influences from and by outside forces of doom and gloom.

VR: How much time did this process take and has Government approved the way in which you have done it?
GG: We began talking in earnest on the 26th of August, 2010 and subsequent to that, the bank’s works council which is comprised of equal management and non-managerial representatives with Governor as Chairman, met 11 times from 8 September, 2010 to 31 December 2010.
The various works council agreements were lodged with and noted by the Ministry of Labour in terms of the necessary procedures and legislation for both managerial and non-managerial employees and there was no dispute or disagreement between us. In short therefore, yes, the process has been approved.

VR: How many people have been retrenched and what is the nature of the packages?
GG: All in all, we are looking at 1 455 people affected, comprising of 964 non-managerial staff retrenched; 232 contract workers retired and 259 managerial employees who left the Reserve Bank of Zimbabwe for good, unless recalled, as at Friday, 28 January, 2011.
The budgeted cost of the retrenchment package is approximately US$30 million with an additional US$40 million in backpay, leave-pay and other statutory payments.
Of course, a budget is not the same as actual. 
Actuals will be reported in due course once the exercise is complete, but that figure is not expected to exceed the budget.

VR: How many employees are now left in the bank?
GG: Total complement of staff as at end of December, 2010 stood at 1 948. With 1 455 going, total bank complement will reduce to 493.
The cut has been across the board. This number should be sufficient to execute the bank’s revised mandate.
VR: What does the latest development mean for the central bank going forward?

GG: It’s an era of compliance with the new revised act and it’s a migration from the wider brief that we had to the narrow brief defined in the Act.
This is in line with the wishes of the legislature.
The sad thing though is that this realignment is resulting in the loss of jobs for 75 percent of the RBZ staff, 20 percent of whom had served the bank for between 15 and 35 years, 50 percent for periods of between 5 and 15 years while the balance falls in the service category of five years and below.

VR: Is this resulting in the closure of some departments?
GG: The refocusing of the bank has led to the closure of such departments as mechanisation, parastatals and local authorities reform and special projects, with other retrenchees coming from across the board in terms of just downsizing the contigency and management staff.
VR: You are leading this process, but what is your fate  given speculation around your future with the bank and that of the deputy governors?

GG: At Government level, the Act prescribes that there shall be two deputy governors instead of three and to that end Government is still seized with the matter of deciding who against the three goes or whether all three go and or whatever. As you know, the appointment of the governor and his deputies is the prerogative of His Excellency the President on the advice of the Minister of Finance.
VR: But are you yourself safe as governor?
GG: As you know, my reappointment has been the subject of several misconceptions and ill-informed debate among many stakeholders and I have refrained from getting involved in that debate.
Suffice to say that I serve at the pleasure of he who appoints me and consequent upon that the public will be aware that my boss the Minister of Finance announced to the nation in April last year that I had been appointed chairman of the RBZ board and as you are aware the RBZ Act confers the chairmanship of the RBZ  board to the sitting governor so I don’t want to get involved in this debate.

VR: How about funding for the retrenchments?
Have you already secured the needed resources?
GG: The initial pay out is being funded by an advance of US$7,5 million that has been given to us by the Ministry of Finance and this should see the retrenchees going away with about US$5 000 each and the balance will be paid during the course of the year.
The rest will be funded from the sale of non-core assets, which exercise is underway.

VR: It has been a mammoth task I presume? What advice would you give to others intending to retrench?
GG: My advice is that institutions which do not need to retrench should not just retrench for the sake of it. 
If however, you have to do it, the exercise should be done without malice, and should be carried out with a human face that recognises that life is tough out there without a job.
On the part of the retrenched, my advice is to look at the event as an opportunity to go out there and be an employer, use whatever little retrenchment package one gets to start something of a business, however, small.
Some economic giants we read of today started off as small backyard enterprises owned by a family.
You hold the same promise for your family and the country at large. 
Pooling of resources among trusted friends and simply growing “chickens” is not a bad idea to start with while thinking of bigger ventures to undertake. 
There should be no suicides arising from one’s retrenchment even though it is both a painful and unfortunate development. 
Life must still go on. That is my advice to all.

VR: Any more sentiments on the issue?
GG: As for me at RBZ and as its governor, nothing has been exhausted and pained me more than to see such a galaxy of talent, dedication and commitment going.
For all our faults, the departing staff are men and women who became the country’s final line of defence at its hour of maximum danger and need; for all our faults, these men and women possess some of the finest skills this country will ever know and if I had a way and means, I would employ each and everyone of them again even in my own personal or family entity because I know they are a fine group of people, but such is life.
I am convinced that those lucky enough to offer them new jobs will bear testimony of my commendations.
Go well fellow star-workers and managers, you did your best and gave your best and kept Zimbabwe on its feet when surrender was the easiest option.