Unemployment, currently standing at
28.2%, remains a socio-economic
challenge for the country. It is
expected that this figure will increase in the
short term. There is also a tendency to
employ males in preference to females and
the Employment Act is being reviewed in
an effort to address gender discrimination.
Despite sustained efforts the labour force is
characterised by excess supply and the
10,000 graduates and school leavers
entering the market each year are hardpressed
to find jobs with only about 20%
likely to be employed.
Sources of job creation include a tourism
development, the promotion of SMEs,
construction projects and investment
promotion by SIPA.
More lately, the Smart
Partnership initiative has become a positive
factor with 15,000 jobs expected to be
created through this channel.
The latest figures indicate that public sector
employment has grown by 1.65% p.a. and
government has failed to uphold its policy
of zero growth. The proportion of the
recurrent budget allocated to salaries
continues to be excessive and Swaziland
does not compare favourably with other
developing countries in this respect. The
need to reduce the size of the civil service is
crucial. If the voluntary retirement strategy
for civil servants aged over 55 years is
adopted, this sector could decline by 2.2%
per annum. However, this is yet to be
implemented.
Retrenchment programs involving the
shedding of non-core activities by several
major entities during recent years has
resulted in many of the affected employees
receiving assistance to form their own SME
operations, from which the organisations
concerned outsource. This trend is in
keeping with the Government policy of
assisting and developing the SME sector.
However, the threatened closure of Sappi
Usuthu will not only result in further job
losses, but also impact negatively on many
of these small operations.
As already noted, the SME sector is a
crucial arena for job creation and the
promotion of Swazi-owned businesses
continues to show encouraging growth.
Swaziland’s SMEs have access to various
schemes and funds and are a priority for
relieving unemployment. The last official
estimate is that there are over 52,000 jobs
in this sector. The Entrepreneur of the Year
Competition, hosted by the Ministry of
Enterprise and Employment, serves to
publicise this sector and encourage people
to participate.
As far as migrant labour is concerned, this
group has significantly declined over recent
years with fewer Swazis employed on the
South African mines. Taking into account
street vendors and small holder farmers,
indications are that about 300,000 people
are employed or engaged in some form of
income-generating activities.
The Industrial Relations Act
Workers’ rights in Swaziland are governed
by the Employment and Industrial Relations
Acts. The latter was amended during 1996
and subsequently revised through the
Industrial Relations Bill of 2000, which was
passed that year. This was in response to
the requirements of both employers and
organised labour unions. When the
International Labour Organisation expressed
dissatisfaction with certain clauses in the
new Act, it was again revised and
subsequently passed in 2001. It conforms
to ILO standards and conventions, and
provides a structured framework for effective
industrial relations, ensures an ideal
environment for new investors, and enables
procedures to be conducted in an unbiased
manner.
The Industrial Relations Act No. 3 of 2005
contains amendments to the Act of 2000.
These relate to the reporting of disputes.
Industry Unions
The unions registered with the Department
of Labour include:
* Building and Construction Workers Union
of Swaziland.
* Union of Financial Institutions and Allied
Workers.
* Hotel, Catering and Allied Workers
Union.
* Commercial and Allied Workers Union.
* Manufacturing and Allied Workers Union.
* Transport Workers Union.
* Post and Telecommunications Workers
Union.
* Mining, Quarrying and Allied Workers
Union.
* National Association of Civil Servants.
* Association of Lecturers and Academic
Personnel of the University of Swaziland.
* Electricity Supply, Maintenance and
Allied Workers Union.
* University of Swaziland Workers Union.
* Workers Union of Swaziland Town
Councils.
* National Association of Teachers.
* Conservation Workers Union.
* Agriculture and Plantation Workers
Union.
* Engineering, Metal and Allied Workers
Union.
* Workers Union of Swaziland Security
Guards.
* Media, Publishers and Allied Workers
Union.
Only non-management personnel may
belong to a union which can be established
within an organisation once a recognition
agreement is approved by all concerned and
the number of employees wishing to be
unionised meets the minimum set
percentage.
There are Staff Associations at large
organisations, membership of which
comprises employees whose status falls
between worker and management.
The Federation of Swaziland
Employers & Chamber of Commerce
(FSE&CC)
The FSE&CC is an employer and business
organisation that is recognised by
businesses, organised labour, government
and the international community. As the
voice of business in Swaziland, the
objectives of the organisation are to promote
and protect the interests of its members and
to encourage industrial harmony,
productivity and prosperity for all. Services
provided include consultation and advice
on industrial relations and other legal
matters, employment issues, trade
facilitation, training, occupational health
and safety, publications and research, and
representation on statutory and nonstatutory
bodies.
In fulfilling this mandate the organisation’s
core functions are advocacy, representation
and providing both free and user pay
services. It also facilitates business linkages
with investors from other countries and
attends to trade enquiries from members
and non-members. It has regular contact
with the media, local and international
employers and labour organisations, regional
and international chambers of commerce,
and foreign governments through the
diplomatic missions in the country.
Affiliation to regional, continental and
international organisations has widened the
networks and the FSE&CC is an active
member of SADC Employers Group; East,
Central and Southern African Employers
Group; Pan African Employers
Confederation; SADC Association of
Chambers of Commerce and Industry and
the International Organisation of Employers.
The various sized and diverse concerns
represented by the FSE&CC account for
over 70% of businesses in the country. To
effectively serve its membership, the
FSE&CC has developed the concept of
sectorial meetings, where members within
the different sectors of the economy meet
with relevant government ministries and
departments to discuss issues of mutual
interest. This enables the organisation to
speak with one voice on behalf of its
members, which is seen as an important
step in the development of the country and
one that benefits both the members and
the general public. The phenomenal growth
of small and medium enterprises in recent
years has prompted the FSE&CC to
package services targeted to this sector.
Globally, the SMEs sector plays a major
role in job creation and economic growth.
The vast majority of large companies are
outsourcing non-core services to SMEs and
the role of FSE&CC is to ensure that the
sector is well capacitated so that it offers
quality services.