The ongoing Public Service Wage theft, its roots, progression and defeat through collective bargaining

 The ongoing wage theft from public service workers, its roots, progression and ultimate defeat through collective bargaining. 

By Fundizwi Sikhondze

Image sourced from the internet

Last week on 03 August 2022 what appears to have been a breakthrough in the protracted negotiations in the public sector led to an agreement on the agenda for the negotiations year of 2022/2023. In the agenda parties agreed that for the 2022/23 financial year negotiations will prioritise the salary review, then Cost of Living Adjustment for the financial year 2022/23 and lastly appeals from the 2016 salary review process.

Whether the agreement on the agenda means anything meaningful is going to be determined by the actions of the government and the reaction of public service workers in the coming weeks as negotiations unfold. What is clear is that from the onset the 11^th government of Eswatini (2018-2023) followed a policy framework whose point of departure was the assertion that public sector wage bill (central government and public enterprises) was too high. This they said was to the enxtent that the wage bill had become an impediment to the potential development of the country and that the wage bill negatively impacted the country’s ability to meet its broader service delivery obligations to Eswatini citizens. 

It is also of curious interest that 11th government officials such the current Finance Minister Neal Rijkenberg, had utilised the wage bill as a campaign tool that got them appointed into key ministerial positions . For those who are quick to forget Neal was widely cited by local media, at the people’s parliament gathering before the promulgation of the 11^th government, strongly advocating of the freeze of the wage bill. He was subsequently appointed as the Minister of Finance thereafter. In the 2021 as well as in the 2022 budget speeches as finance minister Mr Rijkenberg indicated strongly that he was leading the government in a highly intensified crusade against the public sector wage bill. In both speeches Mr Rijkenberg indicated that this time around global institutions namely, the International Monetary Fund (IMF) and the World Bank were firmly on board to assist them through the Fiscal Adjustment Plan (FAP) that the government had agreed to with the IMF and World Bank as a consequence of being awarded COVID-19 loans worth at least E3.Billion by both the institutions to cope with COVID-19.  

The 2021/2022 financial year public wage bill stands at E7.2 billion which falls around 30% of the E24 billion budget announced by the finance minister and stands at around 12% of GDP. The wage bill in comparison to Southern Africa Development Community (SADC) is moderate. Further, given the fact that the contribution of the public service to the GDP surpasses 50% the mark it would not be surprising to have high expenditure to public service. Analysis without taking these factors into consideration constitutes analysing the expenditure in the narrow terms devoid of any reference to the developmental and economic contribution.  

Worth noting is the fact that the current Cleopas Dlamini (Prime Minister) and Rijkenburg government was not the first Eswatini government to bring up the issue of the wage bill. In the period post 2008 global economic meltdown/crises period, the then Prime Minister, Sibusiso Barnabas Dlamini (2013-2018), also initiated a processes towards introducing austerity measures aimed at reining in the wage bill. These measures included unilaterally refusing to pay the annual Cost of Living Adjustment (COLA) increases from 2011 onwards and trimming down the public service headcount. During the August 2013 launch speech of the personnel audit Prime Minister Barnabas informed the country that the government needed to reduce the public service headcount by 7000, out of the 42 000 people, if it wanted to remain sustainable. 

Subsequent to, and as a result of, these pronouncements, the annual inflation based Cost of Living Adjustment (COLA) to public sector workers (from central government and from public enterprises) has been scarce since then. In response, public sector workers have over the years engaged in different forms of industrial action, including the protests and strike actions to voice their utter displeasure at being squeezed financially by the government. The response to the industrial action by the state  has often been to unleash the armed forces to violently supress the collective action of public sector workers, the latest incident being the October 2021 incident where public sector workers from Northern Hhohho were shot at while inside a bus on a way to a protest march in Mbabane, the capital city of eSwatini. 

Many can be forgiven to believe that the concern with public expenditure comes from a point of view of rationality and the desire to balancing the public purse. Far from it. On close analysis it has been discovered that the governments expenditure in the same period has been quite high in non-essential  expenditure items for the upkeep of an opulent life in the royal household, expenditure borne by the ever increasing numbers of personnel in the armed forces, construction projects particularly the construction of a multi-billion Emalangeni International Convention Centre in Ezulwini, royal link roads, Mandvulo Hall at the King’s Lozitha Palace, to name but a few but at the same time critical public service is at deplorable levels from underfunding. For instance roads are  impassable, schools have acute teacher shortages, school feeding programmes have been severely cut and hospitals are without critical personnel while at the same time qualified young people are sitting at home without employment..

As we all look forward to  the outcomes of the negotiations starting from Wednesday 10th August 2022 it is hoped that the money lost over the years will be clawed back into workers pockets.