We had proposed 11% – unions
Innocent Selatlhwa | Tuesday May 10, 2022 06:00
The talks with the five unions Botswana Public Employees Union (BOPEU), Botswana Teachers Union (BTU), Botswana Sector of Educators Trade Union (BOSETU), Botswana Land Board and Local Authorities and Health Workers Union (BLLAHWU) and Botswana Nurses Union (BONU) commenced on May 3 and were concluded on May 7.
“For each of the fiscal years 2022–2023 and 2023–2024, public sector unions propose an across-the-board nominal wage/salary increase of 11%: The cooperating unions propose an 11% increase in nominal wages purely to address the erosion of real wages by the surge in inflation since the second quarter of 2021. The alternative, i.e., leaving nominal wage unchanged, effectively amounts to a decrease of at least nine percent. In quarter 1 of 2021, the rate of inflation was 6.7 percent. It was 8.7 percent in quarters 2 and 3 and closed the year at 8.7 percent. in December of 2021. It is projected to pick at 10.5% in March of 2022 to more than 11% by the end of 2022. The proposed adjustment is just enough to compensate workers, albeit partially, for the erosion of their real incomes by inflation. The cooperating unions propose a salary adjustment of 11% for the fiscal year 2023–2024 as well. Assuming the inflation rate returns to the Bank of Botswana target range of three percent to six percent, 2023–2024 will see public sector workers get a real salary increase of five to eight percent. In both years, public sector wages will, relative to the 'without salary increase' scenario contribute to stabilizing aggregate demand and giving impetus to growth and job creation,” reads the union’s position papers.
BOFEPUSU deputy secretary-general, Ketlhalefile Motshegwa said they had to settle for five percent though they initially wanted 11%. "We, however, could not get it our way as the employer also had their own reasons,” he said.
Motshegwa further said it was possible to conclude the talks at a set time because the parties followed laid down rules.
According to a joint press release, parties agreed as thus on the following aspects; an across-the-board salary adjustment of five percent for the financial year 2022–2023 effective April 1; an across-the-board salary adjustment of five percent for the financial year 2023–2024 effective April 17, 2023; an across-the-board salary adjustment of five percent for the 2024–2025 financial year effective April 1, 2024, subject to the performance of the economy and to be reviewed jointly by the parties.
“Further to the above, parties invoke the provisions of Clause 5 of the agreement they entered into on August 27, 2019, and amend the start and end dates for the beginning and conclusion of all items set out under and pertaining to: The start date of the Remuneration Policy for the Public Service is amended to June 2022 and the conclusion date is amended to December 2022; the start date of the Development of the Fan-Shaped Salary structure is amended to June 2022 and the conclusion date is amended to April 2023; the start date of the Performance Management and Development (PMD) is amended to June 2022 and the conclusion date is amended to March 2023; the start date of the Job Evaluation Exercise is amended to June 2022 and the conclusion date is amended to June 2023, and the dates for the Task Team that was mandated to conclude Overtime Management Report are amended to a start date of June 2022 and a completion date of August 2022,” reads the statement.