The recognised Trade Unions are demanding a 16 percent salary adjustment comprising 13.8 percent inflationary adjustment and a 2.2 percent salary increment based on the improving economic outlook and the erosion of the purchasing power of the pula currency through cumulative inflation over a period of three years.
The position of government is that the economy cannot afford the salary increase of 16 percent, as the cash flow projections already indicate budget deficits which are anticipated to continue during the first half of NDP 10. It is not the government intention to either downsize the Public Service or trim down the already stretched development budget in order to increase Public Service salaries rather than protecting employees from losing their jobs. It is therefore not in the best interest of our country's economic situation to increase public service salaries by 5 percent before the second quarter of the economic review as the review would guide on its affordability and sustainability in the medium to long term.
