US embassy cable - 05GABORONE685

UNCLAS SECTION 01 OF 02 GABORONE 000685 
 
SIPDIS 
 
AF/S FOR HOFSTATTER 
 
E.O. 12958: N/A 
TAGS: PHUM, ELAB, PGOV, BC, Labor 
SUBJECT: TRIPARTITE COOPERATION LACKING 
 
REF 04 GABORONE 1607 
 
1.  SUMMARY:  Tripartite cooperation in Botswana's labor 
sector is hampered by weak unions and a lack of trust 
between labor, management and the Government.  Participants 
in a May 18-19 labor conference identified these factors as 
causes of slow productivity growth in Botswana.  The USDOL- 
funded Improving Labor Systems in Southern Africa program 
will help address some of these concerns.  Mission will 
continue its outreach in support of an organized and capable 
labor movement.  END SUMMARY. 
 
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ORGANIZED LABOR WEAK 
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2.  A May 18-19 conference hosted by the Botswana National 
Productivity Center (BNPC) gathered workers, government 
officials, private sector representatives, and NGO members 
to consider the role of tripartite partners in increasing 
productivity.  A prominent theme of these deliberations was 
the need for more effective representation of labor.  Deputy 
Commissioner of Labor Richard Mukuwa asserted that the 
drastic disparity between the capacity of unions and that of 
management undermined tripartite cooperation.  Victor 
Digwamaaje, a representative of the Botswana Federation of 
Trade Unions (BFTU), primarily blamed the Government for 
this, noting that until last year the law barred unions from 
employing full-time officers.  While admitting that unions 
lack financial and human resources, he explained that they 
are working with the BNPC on a five-year plan to 
systematically address their weaknesses. 
 
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LACK OF TRUST DIVIDES LABOR FROM MANAGEMENT AND GOVERNMENT 
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3.  Dr. Collie Monkge, Coordinator of Vision 2016, the 
Government's development objectives for the fiftieth 
anniversary of independence, cited concerns that the 
Government has not created a level playing field, thereby 
unfairly disadvantaging workers.  The President of the 
Association of Botswana Tertiary Lecturers pointed out that 
the Government fails to enforce some labor laws, such as the 
minimum wage law.  Earlier in the week a fire at a 
commercial warehouse claimed the life of one man, in part 
because workers were locked into the building.  The Deputy 
Commissioner of Labor supinely observed that his Department 
is not responsible for "security and safety measures of 
companies."  Mr. Digwaamaje of the BFTU complained that 
instead of consulting unions on the formulation of labor- 
related laws and policies, the Government informs unions of 
decisions it has already finalized.  As a result, workers 
often perceive the Government to be biased in favor of 
employers. 
 
4.  A representative of Debswana, the De Beers - Botswana 
joint venture that operates Botswana's diamond mines - 
explained that some companies' unwillingness to divulge 
profit and wage information to unions reflects their lack of 
confidence in them.  Recent incidents such as the disclosure 
by an employee of a company's confidential information and 
the August 2004 diamond miners' strike that violated the 
union's own constitution (reftel) have exacerbated this 
trust deficit.  Debswana recently dismissed the Chairman and 
Secretary General of the Botswana Mine Workers Union, 
 
SIPDIS 
apparently in connection with this illegal strike.  On May 
21, the BFTU will present a petition to the Office of the 
President protesting this action. 
 
5.  Although Government officials uniformly welcomed the 
unionization of the public sector, they also voiced some 
distrust of unions.  Echoing recent criticism expressed by 
Minister of Local Government Margaret Nasha, the Acting 
Chair of the Local Enterprise Authority questioned the 
propriety of union activists publicly acknowledging a 
political affiliation.  (Note:  Opposition parties typically 
find more support among organized workers than does the 
ruling Botswana Democratic Party (BDP).  End Note.)  Not 
surprisingly, similar concerns have not been expressed about 
employers, some of whom are major financial backers of the 
BDP.  Elias Magosi, Coordinator of Public Service Reforms in 
the Office of the President, went further to state that the 
"highest levels" in the Government were not even familiar 
with the concept of tripartite cooperation and insinuated 
that senior-level political commitment to this principle was 
lacking. 
 
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SKEWED INCOME DISTRIBUTION LOWERS PRODUCTIVITY 
--------------------------------------------- - 
 
6.  While most of the discussion focused on institutional 
explanations for low productivity, Professor Mogalakwe of 
the University of Botswana encouraged participants not to 
overlook social factors.  Skewed income distribution and the 
resultant poverty, he argued, also undermine productivity 
growth.  Mogalakwe cited numbers generated by the 
Government's Central Statistics Office indicating that only 
20 percent of Botswana households earn 61 percent of the 
country's income.  According to his own calculations, he 
added, it would take the lowest paid government employee 35 
years to earn what the Permanent Secretary to the President 
earns in just one year.  This inequality impacts 
productivity-related factors such as health and education as 
well as undermines labor buy-in to productivity-enhancing 
efforts. 
 
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GOB FOCUSED ON GROWTH 
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7.  Officially opening the conference, Minister for 
Presidential Affairs and Public Administration Phandu 
Skelemani lamented the slow growth of productivity in 
Botswana.  He observed that increases in wages have not been 
matched by greater productivity.  This has limited the 
competitiveness of Botswana's exports and impeded efforts to 
attract foreign direct investment.  While Skelemani 
encouraged further unionization of the work force, he called 
on unions to "come out of their cocoon" and help improve 
productivity. 
 
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COMMENT 
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8.  Historically, labor has supported the opposition parties 
and large corporations have backed the BDP.  A recent 
meeting of the BDP in the Central District, which includes 
the Orapa diamond mine, yielded the consensus that as 
support for the opposition grows the ruling Party must 
broaden its appeal to workers.  This appeal is likely to 
fall on deaf ears if the Government is not seen to intervene 
in the BMWU leaders' dismissal. 
 
9.  As noted during the conference, the Improving Labor 
Systems in Southern Africa program, funded by USDOL, will 
help address some deficiencies in Botswana's labor sector. 
Mission has made workers' rights a priority, as illustrated 
by its nomination of an Assistant Commissioner of Labor to 
participate in an International Visitor Leadership Program 
on labor issues in August 2005 and developing labor-related 
proposals for the Democracy and Human Rights Fund program. 
Mission plans to continue its support for workers rights 
through arranging voluntary visitor programs for labor 
stakeholders and by hosting digital videoconferences on the 
role of organized labor in enhancing economic growth. 
 
HUGGINS