Times of Eswatini

Increase minimum wage – some MPs

- STORIES BY SIBUSISO ZWANE

MANZINI - Some MPs are in support of the call to review the minimum wage as part of a shortterm interventi­on to the increasing cost of living, but say it should not be a national minimum wage.

Kukhanyeni Member of Parliament (MP) Malavi Sihlongony­ane said he recently conducted a study on the matter with the intention of moving a motion in Parliament.

He said this followed the rise in prices of basic commoditie­s, which increased the cost of living in the country and caused leaders of the Trade Union Congress of Swaziland (TUCOSWA) to march and petition various government department­s.

Sihlongony­ane said he was of the review of the increased minimum wage in the various sectors, but said it should not be implemente­d as a national minimum wage because it could affect some workers and small and medium enterprise­s (SMEs).

Helpers

For example, he said if the national minimum wage was set at E3 500 per month, some workers who hired helpers might struggle to pay them that amount.

On the same note, he said people who operated spaza shops, which fell under SMEs (retail), might not afford to pay their workers E3 500 per month, which other retail businesses (supermarke­ts) could manage to do.

In that regard, he said government should look into the minimum wage of the different sectors of the economy and down to other categories; SMEs and large chain stores. He said a national minimum wage could discourage SMEs, yet the country needed them to stimulate the economy.

On the same note, MP Sibusiso ‘Scorpion’ Nxumalo said indeed prices of basic commoditie­s had strained most families in Eswatini and the inflation had eroded people’s income due to the recent catastroph­es such as COVID-19 and the ongoing Russia/ Ukraine war.

Again, he said in terms of civil servants’ cost-of-living adjustment (CoLA) (three per cent, plus a once off payment of one per cent of their annual salaries) would not be sufficient.

“So, the minimum wage proposal is similar to the salary review,” the MP said.

Again, he said emaSwati needed short-term interventi­ons from government that would be time bound. He said if government could not meet their salary demand, it should do shortterm interventi­ons like tax cuts for a certain period, which should last until the dust settled as far as the inflation rate was concerned.

He stated that the Russia/Ukraine war and the inflation would not settle anytime soon, thus the people and government needed to think outside the box.

“I also suggest that we cut pay-as-you-earn (PAYE) as an interventi­on since we introduced value added tax (VAT) as a country. I think the time has come to consider a PAYE decrease as a short-term interventi­on because the tax is too high,” MP Nxumalo said.

Other parliament­arians who supported the call for a review of the minimum wage included Nkilongo MPTimothy Myeni, Gilgal MP Kenneth Sandla Fakudze and Mkhiweni MP Michael Masuku, among others.

The Gilgal MP said the sharp rise in food prices had significan­tly affected household consumptio­n as food accounted for a larger share of families’ budgets in the country.

He said: “Sisebentel­a nje kutsi simane sidle (We are working to survive).”

Mistrust

The Gilgal MP said government needed to improve collaborat­ion between the public and private sector because there was mistrust between them.

This, he said, had contribute­d to the domestic food price volatility because it increased the uncertaint­y in decision-making.

He said a higher degree of predictabi­lity and transparen­cy in the behaviour of government and the private sector should be pursued through various ways, like sharing of market informatio­n and various arrangemen­ts of public–private partnershi­ps.

Thereafter, he said policy interventi­ons to be introduced in subsequent periods of time should be made public and opportunit­ies for anti-competitiv­e behaviour and corruption in the supply chain should be reduced or eliminated. He also added that government needed to take proactive steps in monitoring the price increases to prevent abuse or manipulati­on by certain parties.

“We also need to trace a product’s path from the beginning until it reaches the consumer and see how we can minimise the cost,” the Fakudze added.

 ?? (File pic) ?? Madlangemp­isi MP ‘Scorpion’ Nxumalo.
Sibusiso
(File pic) Madlangemp­isi MP ‘Scorpion’ Nxumalo. Sibusiso

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