ESWATINI BEVERAGES EFFECTS 10% SALARY CUT

MBABANE - It’s official, salaries for Eswatini Beverages Limited (EBL) employees have been cut.

Following successful consultations and negotiations between employees and management, the 10 per cent salary cuts which were proposed three months ago has been implemented.

In May, this publication reported that due to COVID-19, and in an effort to save jobs, the EBL had proposed to cut salaries of all its employees by 10 per cent for the next 18 months.

The company, which is part of the global giant brewer Anheuser-Busch InBev (AB InBev) family, has been one of the major casualties of the coronavirus pandemic in the Kingdom of Eswatini after government implemented the COVID-19 regulations, one of whose guidelines was a ban on the production and wholesaling of alcoholic beverages.

Distribution

Liquor is among non-essential products that government decided to suspend, especially its production and distribution.

Confirming the latest developments was EBL Head of Legal and Corporate Affairs Mpumelelo Makhubu.

“The 10 per cent salary cuts for staff were effected on the July 1, 2020, as a means to avoid retrenchments, and to protect our company’s long-term viability during the industry shutdown. Consultations with staff prior to implementation were successful and there was general appreciation of the challenges presented by the disruptions in business resulting from the COVID-19 pandemic,” he said.

According to Makhubu, the salary adjustments will be effected until December 2021, but will be reviewed periodically if the current situation normalises and the business recovers.    

“This decision was not taken lightly. We empathise with the hardships that this will create for many of our colleagues. However, we fundamentally believe that in light of the shutdown and prohibition placed on our business, this is the best course of action to help preserve the employment and wellbeing of our entire Eswatini team,” he mentioned.

When asked to shed light on how the company had been affected, he said the damage had been very substantial considering that they had not been selling for more than three months since the first ban was announced in April.

“We are conscious that the business must prepare for a very challenging and protracted recovery,” he mentioned.

During the consultations and negotiations, the employees were represented by the Swazi Economic Improvement Workers Union. 

The organisation went out of its way to visit various towns to meet its members and allow them to present their views. President Mashumi Shongwe confirmed the implementation of the salary cuts and said they had no option but to agree as workers due to the state of COVID-19. “This didn’t go down well with us but there was no option since the impact of covid-19, in terms of business and employment, is clear that it has such, negative impact. 

Situation

“We are looking up to government to help intervene in this situation by easing some of the regulations to give an opportunity to open operations in this industry again. We all understand that alcohol has been suspended in the country, but still it must be considered that the industry employs a lot of people and, by extension pay a better portion of taxes that boost the economy of Eswatini,” said Shongwe.

He mentioned that they were aware that alcohol or any other substances that contained it had an effect on human behaviour but at this point in time there was a need to balance life, economy and the future of their work. 

Shongwe appealed to the union’s members employed by EBL and other liquor outlets to remain calm under this tough situation. “We have faith that this situation will pass as long as the nation and the world take serious caution by adhering to health measures to stop the vigorous spread of the virus. We all need to be cautious without getting used to the pandemic. If we all stick to the safety precautions, we believe we will overcome the pandemic,” he emphasised. It should be noted that in May, our sister publication, The Times Sunday, reported that the company revealed that about 224 000 bottles of beer kept in its warehouse would be destroyed due to the ongoing lockdown, which was effected as part of measures to fight the spread of COVID-19.

The publication reported that the booze, according to calculations where each unit of bottle was charged at E17, was worth over E3.8 million.

It was gathered that the bottles that had expired included those of Sibebe Premium Lager, Castle, Hansa, Castle Lite, Castle Milk Stout, Black Label and Lion Lager. The news of the pay cuts is obviously a disappointment to the employees as they have been enjoying salaries and benefits which came about in 2018 after an agreement where all wages and salary rates were increased by 6.5 per cent across the board. 

The increase came about through a collective agreement which was entered into by the Swazi Economic Improvement Workers Union and EBL, a deal which was agreed upon on August 8, 2018. According to the bargaining unit, which included conditions of service and salary increments, there was also to be an increase in certain allowances. 

This was to include ration or food allowance which was increased to E30.

The EBL is the leading beverages company in Eswatini. 

Distribution

It manufactures, markets, sells and distributes a range of the world’s giant company AB InBev beer brands.

Besides affecting the EBL employees, the ban on the manufacturing and wholesaling of alcohol has had negative effect in that imbibers have used illegal means just to ‘wet their throats’.

This publication reported about an influx of Mozambican alcoholic beverages in the country, amid the drastic shortage of booze. It was revealed that liquor sellers and locals were selling Mozambican booze at inflated prices, such as beers, to wines and spirits.

There were also reports that imbibers’ desperation led them to willingly buy expired alcohol at inflated prices from back-door sellers.

Worth noting is that South Africa President Cyril Ramaphosa on Saturday announced that the neighbouring country would be moving to Level 2 of the lockdown from midnight today.

The president, who was addressing the South Africans through a televised address, said tobacco, as well as alcohol sales, would be allowed; subject to certain restrictions. One of the conditions announced by the president was that alcohol would be permitted for on-site consumption in licensed establishments only up until 4pm.

Restaurants, bars and taverns, according to the president, would be permitted to operate under approved protocols.

He also announced that accommodation, hospitality venues and tours would be permitted in approved protocols to ensure social distancing.

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