Maravi

Sata tells ministers to Stick to procedure

Sata tells ministers to Stick to procedure
By Joan Chirwa-Ngoma
Tue 31 Jan. 2012, 13:00 CAT

PRESIDENT Michael Sata has warned his ministers against making pronouncements that are not in line with government policy.

But economic consultant Professor Oliver Saasa says President Sata's statement signals the lack of coordination in the government, cautioning that there must be careful consultation among stakeholders before salary hikes are effected for public workers to avoid overstressing the economy.

In apparent reference to recent announcements of salary increments by government officials, President Sata cautioned ministers and other government officials against taking approaches that were away from established procedure.



"Ministers and government officers should not resort to arbitrary positions which can only induce loss of confidence in the country and in the process undermine progress which is essential and crucial to achieving poverty alleviation and reduction within the shortest time possible," President Sata said in a press release issued by State House deputy Press Secretary Amos Chanda.

"Government style and policy is to discuss with employers and workers, matters of mutual interest following the statutory channels and procedures. To this effect, some of the approaches pursued by individuals in government are adrift with established procedure. Labour unions are free to bargain with employers on salary or wage settlements as by law established."

President Sata said employers must guard against inflationary pressures when adjusting salaries for their workers.

"In the interest of the economy, the President's guidance, save for the special case of workers in the medical sector, is that the salary adjustments stay as close to inflation as possible. This is necessary to avoid triggering inflationary spirals which would then render salary increases futile," said President Sata.

Last week, labour minister Chishimba Kambwili announced in Ndola that the government had increased salaries for all health workers by 100 per cent, a decision that has the potential of triggering inflationary pressures on the local economy.

Kambwili said the pay rise would boost morale among health workers across the country.

But Prof Saasa, in an interview, said the principle behind salary increments for health workers was not bad except that the decision may pose serious fiscal challenges on the government.

"Is he President Sata thinking twice about it? It is government's duty to ensure they health workers are properly remunerated. The principle is not bad. But how much salaries go up should go with how much the government is able to pay. If you don't work this out, it will be a serious fiscal challenge. If you are passing too much money suddenly, all people will do is to peg their prices a little bit higher because people's purchases power has increased," he warned.

"The capacity of the government needs to be weighed to be able to handle the up-scaled salaries…Government shouldn't overstress the economy to a level where it might get depressed. Consultation is essential in the government."

Prof Saasa said President Sata's statement signals that there is little or no coordination in the government to a point where some ministers could make pronouncements that have far-reaching consequences on the economy.

"Is what these ministers are doing in line with what the president wants done? There must be guidance from State House," said Prof Saasa.

Last week, Judiciary officials also pressed the government for a salary increase by staging a one-day work stoppage as they demanded a K2 million rise across the board.

Investors have also promised to adjust salaries for their employees, with Konkola Copper Mines granting a 17 per cent pay rise to its employees effective January 1.

Labels: AMOS CHANDA, CHISHIMBA KAMBWILI, MICHAEL SATA, OLIVER SAASA

posted by MrK @ 10:20 AM