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Government, Civil Servants Lock Horns on Pensions
By Olivia Kumwenda, Nationmalawi.com
Malawi
August 17, 2005
Government, Civil Service Trade Union (CSTU) and Teachers Union of Malawi (Tum) are failing to hold talks to avert a nationwide civil servants' strike over calculation of employee terminal benefits.
This follows failure by Ministry of Finance to rescind a circular on a new calculation method, which the civil servants argue leave the employee with less benefits.
Last month government issued a circular to all principal secretaries and civil servants indicating that terminal benefits will be calculated based on a five-year-salary averaging method and not on a consolidated salary scheme.
The idea of the talks followed civil servants' threat last month that they would go on a nationwide strike if government does not rescind its new formula which they claim would lead to loss of two thirds of one's benefits.
According to CSTU president Thomas Banda, the two unions met government officials on August 9 to discuss the issue.
"Our condition was that if government wants us to go back to the negotiation table, it should first rescind the circular so that we clear the grounds for discussion. And we gave them seven days to do that," said Banda on Tuesday.
The deadline for the ultimatum was Tuesday and government had not yet communicated anything to the two unions.
Director of Pensions in the Ministry of Finance David Kandoje confirmed government's failure to meet the deadline.
"It is true that we were given an ultimatum of a week to rescind the circular but this has not been done because the time we were given was too little for us to make necessary consultations and inform Cabinet.
"The decision was made by Cabinet and it is only the cabinet that can reverse it," said Kandoje.
He said during the meeting he informed the unions that the time given was not enough, a point which Banda refuted.
"They did not write to us that the time is not enough . We were told to put our condition in writing and we expected them to write back and tell us that they don't have enough time," said Banda.
He said the union will not consider giving government more time, adding that the next stage would be to start arranging for industrial action as this will now be considered a dispute.
"They will find time when the strike is on because right now they are not treating the issue as an emergency. If government is playing tricks or underrating this, it is very unfortunate," said Banda.
But he was not sure on the exact date the civil servants would down tools but said proper procedures will be followed.
Kandoje said at the moment there is nothing his ministry would do to avoid the pending strike as it is only the cabinet that can rescind the circular.
Tum president Bernard Manda could not be reached for comment.
Finance Minister Goodall Gondwe last month admitted those retiring will get less under the five-year salary averaging method but said government cannot change the decision now because there is no money to implement a system that the civil servants want.
Gondwe said government will need K8 billion to pay on the consolidated salary systems while the five-year salary averaging system will only require K3.5 billion which, he said, was already budgeted for.
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