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GOVT STOPS PARASTATALS’ BONUSES

23/10/2017 05:35:00 BY THEMBINKOSI MAVIMBELA

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MBABANE – ‘“Ngumsindvo”. (This will cause trouble). This was the reaction of one of the Category A parastatals when reacting to government’s stance of halting the payment of bonuses to its staff.

Government, through the Public Enterprise Unit (PEU), informed some Category A parastatals, in writing, that Cabinet had taken a decision to halt the payment of bonuses for the 2016/2017 financial year while awaiting the approval of new guidelines for the payment of the bonuses. However, unions in these parastatals are not buying government’s story, with some alleging that this new move was purely meant to frustrate them and to grease government coffers through huge dividend payments at the expense of the workers.

The Public and Private Sector Transport Workers Union (P&PSTWU) Secretary General Thandukwazi Dludlu, when reacting to this new development said, “I foresee trouble if this is implemented.”
P&PSTWU represents workers from Swaziland Railway. Dludlu narrated that they had an agreement with their employer that they would get bonuses in December. He said their employer could not revoke the agreement as it might spark big trouble. He made an example that they were paid a 13th cheques which meant that it was a condition of service and changing that would need the employer and workers to agree.
“Knowing workers, this might start trouble,” warned Dludlu.

The decision by government will see workers from about 50 public enterprises, including the University of Swaziland (UNISWA), Swaziland Railway, Public Service Pension Fund (PSPF), Swaziland Electricity Company (SEC), and Swaziland Water Service Corporation (SWSC), to mention but a few not getting bonuses.

Some workers, especially those from the Swaziland Electricity Company (SEC), learnt of the decision through a letter written to the company’s Managing Director Meshack Kunene by the Ministry of Natural Resources. The letter states that the decision came after the Director of Public Enterprise Unit (PEU) advised the ministry that Cabinet resolved to halt bonus applications by Category A public enterprises pending the finalisation of new guidelines on the payment of bonuses and dividends. Although the letter suggests that the issue was new guidelines, sources suspect that the real issue was money.

A fortnight ago, SEC employees prayed for their employer to give them their promised bonuses this year. The Swaziland Electricity Supply Maintenance and Allied Workers Union (SESMAWU) President George Maseko was not pleased with news that they would not get the bonuses.

Maseko revealed that their members were not happy with the decision and would today have a special general council to deliberate on it and forge a way forward. He revealed that they had an agreement with management regarding the bonuses and it would not be ideal for that accord to be breached by either party.
He argued that decisions taken by management were by extension those taken by government as the former represents the latter. He was of the view that they should have let this agreement proceed as planned and then introduce the new rules later.

Maseko stated that it would be unfair to employees not to get the bonuses when the year ends as they had played their part.
According to a source, SEC employees did not receive bonuses last year and were eagerly awaiting them this year. The source noted that the rainy season was about to start; a time where there were often many power cuts. He stated that he would not be surprised if employees would engage in a go slow like they did last year.

Another source stated that the employees were bitter that they did not receive the bonuses last year and would not get them even this year yet the company’s financial position had improved. The agreement to give employees their bonuses was taken before the prayer held a fortnight ago. It was revoked after the company wrote to the Public Enterprise Unit through the Ministry of Natural Resources and Energy.

It could not be established as to what will stand between the agreements made by employees and the company and the decision to halt the bonuses. According to the PEU Act of 1989, Section 10 (1), no Category A public enterprise shall do certain activities without the approval in writing of the minister responsible acting in consultation with the Standing Commit. Subsection (1)(e) further states that public enterprises in this category cannot make any major adjustment to the level or structure of staff salaries and wages or other terms and conditions of service of its staff. Again, the decision by government came at a time when UNISWA staff was engaging their employer about getting bonuses as they were not given in the past.

The Swaziland Union of Non-Academic Staff for Higher Institutions (SUNASHI) Secretary General Fundizwi Sikhondze said although they did not receive bonuses, government’s decision was absurd. Sikhondze believed that employees should be incentivised for meeting set targets so that they could work harder. He noted that parastatals were mandated to provide a service to the public.
“We feel that the decision is incorrect because it might jeopardise the delivery of certain services such as energy, water, and many others,” Sikhondze said.

Sikhondze then added that UNISWA employees did not get bonuses because the institution was not a profit-making entity but offered services. He stated that they engaged management about bonuses as they felt they deserved them based on that they produced human capital for the country.