Swazi Observer

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WORLD BANK, ECONOMIST MUST MIND THEIR BUSINESS - PSUS

By SIBUSISO DLAMINI AND SIBONISO NKAMBULE | 2023-08-09

Public Sector Unions (PSUs) have reacted with dismay to the World Bank’s recommendation that the State should not award above inflation cost-of-living adjustments (CoLA).

They were also irked by comments made by an independent economist, Thembinkosi Dube, that the 8.7 per cent they demanded was not feasible as the economy was still ailing.

PSUs want an 8.7 per cent increase yet government has tabled three per cent.
Senior World Bank Economist, Marko Kwaramba warned the country against spending the E11.75 billion of SACU receipts on short-term needs like paying wages or awarding above inflation cost-of-living adjustments.

The PSUs said recommendations were unfortunate because they did not consider that government had not given them CoLA in about eight years.

Swaziland National Association of Teachers Secretary General, Lot Vilakati, said government owed workers and should pay them what they deserved.

He said the World Bank should also consider other factors like workers rights when offering such advice, but right now, ‘all we have to say is that thanks, but no thanks. We will continue pushing for 8.7 per cent’. The Swaziland Democratic Nurses Union (SWADNU) Secretary General,

Mayibongwe Masangane said they were not shocked at the recommendation and accused the World Bank of only considering the interests of business instead of the people.

“It is very disappointing to learn that that’s what government is being advised on, but again, the World Bank clearly does not consider the people’s standard of living,” he said.

Masangane questioned why the bank didn’t make comments on wages for security services.
“There have been increases for certain officials under the guise that we are following a SADC benchmark. How did they miss that and its impact on the economy?” he asked. They accused Dube of tainting the spirit of negotiating, as he has poked his nose on matters that did not concern him.

Vilakati said Dube does not have an authority to dictate how much civil servants deserved to get on the negotiations, adding that such comments from economists could influence the outcome of their negotiations.

He urged Dube to focus on advising government to stop unnecessary expenditure. “A lot of government expenditures are man-made and his focus should be to advise these officials to stop the unnecessary expenditure. The economist is way offside in this issue. Civil servants deserve the CoLA adjustment to consolidate the rising inflation. We will engage him as we believe in engagements,” Vilakati said.

He further revealed that if government insist on the three per cent offer, the other balance they want would be contributed by Dube, who allegedly warned government against giving them their demand.

“After the JNF we will pay him a visit so that he explains himself,” he said. Meanwhile, Dube welcomed the proposed visit by the PSUs.

He said the visit would help them to discuss all the arising issues between the unions and him.
According to Dube, as independent economists, they discuss issues that were on the ground and could not side with government or the unions.

“What we discuss is what is being projected by the economy at that moment. This is an independent opinion on what we see on the ground, not taking the side of government or that of the PSUs,” Dube said.

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