Responding to a question in Parliament asked by Member of Parliament for Selebi-Phikwe West, Reuben Kaizer recently, Atamelang said this was revealed by a consultant who was engaged to do a review of the BR’s organisational and salary structure.
The Selebi-Phikwe West legislator had wanted Atamelang to state: (i) when last the Botswana Railways (BR) Organisational and Salary Structures were reviewed and implemented; (ii) if the two structures were both reviewed and implemented across all positions; if not, why not; (iii) why there is a huge disparity between the highest paid and the least paid employee; and (iv) when there will be a review and increment of salaries for the BR staff.
The junior minister in response stated that the organisation has adopted a pay policy to pay at the 50th percentile (median rate of the Botswana Parastatal Market) of the prevailing market compensation rates for every surveyed job position.
He explained that this means that for every job position at BR is compared against compensation rates for similar job positions in the market.
According to the assistant minister, the disparity in terms of pay between the lowest and highest job grades in the organisation isn't substantiated as the current salary market survey findings show that the executive job positions at the rail parastatal are currently the lowest in the market.
Interestingly, Atamelang stated that the organisation’s lower job positions were found to be above the market as per the findings by an independent consultant.
“Employees amongst the unskilled, semiskilled, to clerical are paid well within the organisation’s targets of the 50th percentile. Employees at technical, supervisory, management, and executive level were paid below the market rates; and the basic salary of the General Manager has been pegged at Permanent Secretary (PS) level as it is the same for other parastatals of the same level.
“However, the survey indicated that the total compensation and benefits were well below compared to other counterparts,” he said.
Furthermore, he told Parliament that the current BR organisational structure was last reviewed by an external consultant in 2019.
Additionally, the assistant minister revealed that consultations with the union on that structure were concluded in June 2021, and implementation was effected in September 2021.
Atamelang said that following this organisational structure review, an independent consultant was engaged during the financial year 2022–2023 to do the salary structure.
He stated that although the salary structure has been approved by the board, it is yet to be implemented due to financial challenges besieging the organisation.
Atamelang explained that the approved salary structure which was done across the board covered all job positions from the lowest grade to Executive Management.
The organisational structure has on the other hand been implemented. He stated that the salary levels of Botswana Railways across positions are guided by the Botswana Railways compensation and benefits policy.
He explained that the salary levels and their implementation are purely guided by the financial performance of the organisation as well as the prevailing market rates per job position, which is done through participation in annual market compensation and benefits comparisons by Private Sector Consultants as engaged by Botswana Railways.
“...It was approved by the Board of Directors in March 2023 for implementation, subject to the availability of funding. To date, management hasn't been able to implement the approved salary structure despite the board’s approval because the organisation’s financial situation hasn't improved to accommodate the budgetary requirements of the new structure,” he revealed.
Therefore, he said, the new salary structure will be implemented once the organisation’s revenues exceed its operating costs.
