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.
