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The belated salary adjustment for employees of state
financial institutions has finally arrived. The
Public Financial Enterprises Agency (PFEA) approved
a 30-50pc salary increase for these institutions it
supervises.
According to a letter Eyob Tesfaye (PhD), director
of the Agency, wrote to the Commercial Bank of
Ethiopia (CBE), Construction and Business Bank (CBB)
and the Ethiopian Insurance Corporation (EIC), on
February 28, 2008, the Agency has increased their
salaries more than the 25pc the institutions had
requested four months ago. However, a copy of the
letter has not been sent to the Development Bank of
Ethiopia (DBE).
“The letter will be sent to DBE next week,” a senior
official at the Agency, told Fortune.
The salary adjustment is effective as of November
2007, and the payments for the four months running
up to February 2008, is expected to be added
employees salaries this month.
“We are glad that our demands have finally been
accepted,” Mintesenot Tibebe, president of the
labour union at CBE, told Fortune.
The four state financial institutions collectively
have 11,700 employees, of which 8,000 are from CBE.
Following the escalation of the consumer price index
(CPI) six months ago, the government increased wages
of civil servants as much as 37pc but employees of
state development and financial institutions have
not enjoyed any salary increment, prompting a
request.
On February 12, 2008, the labour union of CBE also
had threatened to call an employee general assembly
and pass a resolution if the request was not
addressed within 15 days. However, following a
discussion the labour union had with Eyob, it
announced on February 21, 2008, that it had
cancelled the precondition.
“I am glad but it is quite late,” an employee of CBE
told Fortune.
The highest percentage increase was given to the low
income-earning employees while the management
members enjoyed a raise of 30pc.
“This is the highest increase in CBE’s history,”
said an employee of the state giant. “It tops the
20pc increase made right after the EPRDF’s took
power.”
According to sources at the Agency, the latest
increase is temporary. He disclosed that the new
salary rate would again be readjusted based on the
Business Process Reengineering (BPR) study that
these banks are conducting now.
“A new regulation on employees’ bonus and annual
salary increase will be issued soon,” an Agency
official disclosed.
CBE spends close 168 million Br for salary payments
annually while CBB’s 1,000 employees require 23
million Br for salaries. For its 900 staff, DBE
allocates 22 million Br while as the state insurer,
EIC, apportions 18 million Br for its 1,800
employees.
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