MALKERNS Town Board employees are demanding 12.5% cost of living adjustment (CoLA) across all board.
The employees are currently in talks with the management regarding the CoLA.
Through their union, the National Public Service and Allied Workers Union (NAPSAWU), the workers submitted a position paper to the Malkerns Town Board, demanding the 12.5% CoLA for the 2025/2026 financial year. Last Monday the union met with the workers to provide an update on the ongoing CoLA negotiations that started in May.
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The union, represented by its Deputy General Secretary Msimeto Malindzisa, stated that the proposed increase was necessary to help employees combat the rising costs of basic goods and services.
According to NAPSAWU, the past year had been a difficult one for Malkerns Town Board employees, with their salaries being eroded by low yearly offers for CoLA.
The union’s position paper, which was presented to the management when the talks started in May, highlights that nearly 75% of a typical member’s expenditure goes towards essentials such as food, transportation, rent, utilities and communication.
“Prices for these goods and services have seen significant increases in recent years. For instance, public transport fares rose by 15% in 2022, water tariffs increased by 9% in the same year, with an additional 10.2% hike for the 2023/2024 financial year, and electricity tariffs recently rose by 8%,” reads the paper.
NAPSAWU argued that the country’s economy has been improving since 2021, showing a period of stability after the socio-economic turbulence of the Covid-19 pandemic. The union points to a projected healthy GDP of about 4.5% for 2023, according to the ministry of economic planning and development.
Additionally, government received a lucrative E11.75 billion in SACU receipts in the 2023/2024 financial year, with a projected E13.06 billion for the 2024/2025 financial year. NAPSAWU believes that this healthy financial position means improved subventions for parastatals like the Malkerns Town Board.
The union’s demand for a 12.5% CoLA is based on the combination of the projected 2025 inflation rate of 5.13% and a GDP growth of 3.1%. NAPSAWU believes this amount is adequate to enable workers to live decently and will allow them to put more money into the economy, thereby reinvigorating it. The union states that such an award would result in positive general economic growth for the entire country.
Last Monday, Malindzisa said they met with the employees to give them a percentage that was offered by the management. He said hopefully they would be signing sooner as the feedback from the employees warmed up to the proposed percentages by the management. He said he could not disclose the proposed increment by the management.
However, sources within the town board said there is a 5% to 6% that is making the rounds.
Malkerns Town Board Chief Executive Officer (CEO) Cinisela Dlamini did not respond when reached for comment.
He was called around 12.02 p.m. and did not pick up his call. A WhatsApp message was also sent to him. He returned the call at 2.21 p.m. last week and he stated that he does not engage with this publication due to previous articles that were published about the entity he is leading.
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