By Hlengiwe Ndlovu | 2018-03-18
GOVERNMENT’s new financial year begins in April, a period typically characterised by intensive negotiations between civil servants and government for salary increments, cost of living adjustments and other issues.
With negotiation season looming on the horizon, Industrial Court Judge President Sifiso Sibandze has appealed to all parties heading for the negotiation table to apply the highest level of responsibility in their approach.
He advised that the negotiation table should be approached with consideration of the country’s prevailing economic situation.
Judge Sibandze was speaking at the Royal Swazi Convention Centre yesterday in a labour law seminar attended by representatives from different organisations.
The judge president emphasised that nothing can beat a responsible approach so as to prevent unnecessary industrial actions with their adverse effects on the economy.
Nsibandze, however, was cognisant of the negative effect of proposed tax increments and hiked government services on civil servants which could lead them to seeking for some sort of compensation from their employer.
“We cannot run away from the fact that the cost government services has increased with taxes having been hiked. This will definitely hit civil servants in their pockets,” said Sibandze adding that whilst civil servants may seek some sort of compensation from their employer, but still, the negotiation table requires, to a large extent a sense of responsible bargaining from all parties.
Nsibandze observed that negotiations are typically characterised by workers proposing certain income percentages to the employee.
The judge president said industrial action such as the Nedbank strike which dragged on for weeks last year and the Mananga Sugar Backpackers strike should be avoided at all costs this year because industrial actions of this nature always have an adverse effect on the economy.
Judge Sibandze’s sentiments were echoed by FSE&CC Vice President Bheki Maziya, “We are also cognisant of the challenging socio-economic environment in which cost of living negotiations are going to be held this year.
The proposed tax increments on VAT, electricity, graded tax, and the increased costs of basic government services will certainly erode the disposable income of workers,” he said.
He predicted that demands on employers to fill the gap created by increased taxes in circumstances of a non-growing economy, aggressive tax collection, delayed refunds of VAT and delayed payments by government for goods and services will inevitably strain relations at the negotiation table.
“This seminar, does, however, give us an opportunity to put our heads together to see how we can proactively mitigate these foreseeable challenges.”
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