PSUS SLAM PARASTATAL ALLOWANCES HIKE

MBABANE – PSUs have condemned government’s recent decision to increase allowances for Board members of Category A parastatals.
They said the decision is discriminatory and an unfair labour practice. The public sector unions (PSUs) argue that this move demonstrates government’s purported disregard for workers, whom they feel are being treated unequally. The unions expressed frustration and anger, describing the allowance hike as the ‘middle finger’ to civil servants, who have been consistently pushing for a cost-of-living adjustment (CoLA) that barely keeps pace with inflation and a long-overdue salary review which has dragged on for years. Allowances of Category A parastatals Board of directors have increased by a maximum of 87.5 per cent. The increment is subsequent to the introduction of the Public Enterprise Unit (PEU) Circular No.3 of 2024, which came to effect on September 1, 2024.

The Director of PEUs, Busangani Mkhaliphi, in a communiqué, said the new circular revoked PEU circulars No.2/2017 and No.5/ 2013, which until August 31, 2024, were used to remunerate the Board of directors of parastatals. PEU Circular No.3 of 2024 articulates the Board fees and guidelines on travel for parastatals executives. The circular, which was issued on Monday, September 9, 2024, was directed to all chief executives of Category A public enterprises and their Board of directors.According to Mkhaliphi, it was published to inform the recipients that the Cabinet Standing Committee on Public Enterprises, in a meeting held on August 20, 2024 (SM5499) approved the revision of the fees paid to members of the governing bodies of the Category A parastatals. The retainer allocated to a chairperson of a Category A parastatal, according to the PEU Circular No.3 of 2024, has, since the beginning of September 2024, increased by 66.67 per cent.

Retainer

This is because, until the introduction of this circular, chairpersons of Board of directors in the Category A State-owned enterprises (SOEs) had a retainer of E2 400, which has since been reviewed upwards to E4 000. Their sitting allowance will increase by 47 per cent for an ordinary sitting. According to the circular, the number of ordinary Board meetings should not exceed six per year and this is the same with the number of Board sub-committee meetings. In reaction to the increment, the Swaziland Democratic Nurses Union (SWADNU) Secretary General (SG), Mayibongwe Masangane said government was insulting them, as civil servants.  Masangane said these developments meant that government has money, however, they are surprised, why it is not shared with them, as workers.  

According to Masangane, they always receive CoLA below the inflation rate, yet board of directors are given an increment. He shared their disappointment, saying this called for the PSUs to meet and discuss these developments. He stated that once they have engaged as PSUs, they would be able to see what they could do, in order to show that they were against government’s decision.

discriminatory

On the same note, the National Public Services and Allied Workers Union (NAPSAWU) President, Bawinile Ndlovu said the government’s act is discriminatory, unfair labour practice and shows that they are treated unequally.  Ndlovu said all government employees should be treated the same and not deprive others of their intended benefits. According to Ndlovu, this act will not boost workers’ morale, as they are not fairly treated. She explained that, the fact that government has given the board of directors an increment, meant that government has money to spend on certain employees.

Ndlovu stated that as a union, they would not sit and watch government ill-treating its workers, who deserve to be fairly compensated. “We will not sit down and fold our arms. Definitely, we will do something, but it is a matter of going back to members so that we can get a mandate on what we should do, to show how much we despise this act,” she said.She acknowledged that salary review is ongoing but in their eyes, it is long overdue. “We are surprised that government has money, yet civil servants should have been granted a salary review years ago.

Important

“The same workers being deprived of their rights by government are the same workers who worked even during the COVID-19 outbreak, risking their lives and those of their loved ones, showing commitment and dedication to their work. This basically shows that within government eyes, workers are nothing, but the important people are the parastatals board of directors,” Ndlovu stated. Furthermore, she mentioned that the government’s decision was allegedly annoying, but promised that they would ensure that government treats all workers fairly.
Meanwhile, the Swaziland National Association of Teachers (SNAT) SG, Lot Vilakati said they were not surprised by this move as this is what government normally does and they expect the same on the salary review, whereby they will be given fewer increments, while the directors get hefty increments.

Vilakati said it was heinous to give the directors such increments yet they got several packages in their salaries, thus creating a huge gap among employees. According to Vilakati, this affects civil servants, creating huge salary gaps thus demoralising them. He went on to state that this move was a plot to buy the directors, so that they would not question government decisions.

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