200% salary hike, reckless, irresponsible –Siabutuba

The irresponsible and reckless increase of salaries for Civil Servants by the Patriotic Front (PF) government is not sustainable as it will put pressure on the country’s economic growth; charges Former Civil Society for Poverty Reduction board chairperson Partner Siabutuba.
Analyzing the 200 percent salary increment for Civil Servants, Mr. Siabutuba said that the problem the country and the PF government was facing was the failure to show the economic capacity to pay the increased salaries they have awarded Civil Servants in the 2013-2014 collective agreement.
Mr. Siabutuba said that the increase by government by over 200 per cent would put pressure on the private sector, which will result in several industrial unrest in a bid to meet the new demanded increment for people doing the same job in the private sector.
He said that it was reckless for the PF to promote lawlessness in the country by awarding controversial increments that would force polarization in the private sector.
Mr. Siabutuba said that there was need for the PF government to understand the intricacy   of running a sustainable and sound economy by balancing public and private sectors affairs by way of opening up windows for negotiations.
“Where will the PF government find the money to pay the workers? I was looking at these increments the lowest paid civil servant will take home K2.9 million or Kr2, 900. This is not sustainable under the current economic indicators. It will force them to increase or introduce other taxes in order to increase revenue to cater for the wages. Workers will end up being over taxed,” he said.
Mr. Siabutuba who is also Youth Development Organization Executive Director said that what was annoying was the failure by the PF government to re-introduce the windfall tax on copper mines where it could have raised enough funds for such activities.
“The PF government has failed to re-introduce the windfall tax on copper mines which was the only sure and sustainable way of increasing revenues from the mine to cater for economic activities such as salary increments. This was the only sure way of increasing and expanding income revenues for the country’s economic activities rather than depending on the Eurobond,” he said.
He wondered why government had pleaded with the unions to give it time to effect the salary increment in September 2013 if it had funds and not now.