Makerere dons join traders strike

SOURCE: THE DAILY MONITOR, 11 JANUARY 2012

Lecturers accuse government of slamming high interest rates on their loans.

Makerere University lecturers yesterday confirmed they will today join Kampala City Traders Association in their strike over high interest bank charges.

But the traders’ effort to wrestle the commercial banks over exorbitant interest charges on loans continued to attract a cocktail of reactions from familiar but important circles.

Makerere University Academic Staff Association (Muasa), said they are part of the strike because government does not care about the plight of the people, yet it is its greatest resource.

“Out of the meager salary we earn, the government slammed heavy interest rates on that salary because we use loans. Inflation is at 27 per cent because Bank of Uganda funded the last elections and encourages corruption,” the association’s spokesperson, Mr Louis Kakinda, said.

Mr Kakinda warned that the lecturers will not rest until they have received what they deserve. They have planned to have a general meeting after the institution’s graduation on January 20.

The lecturers also want government to take up the university’s 100 per cent wage bill like it does in other public institution.
 

Negotiations

The Private Sector Foundation (PSFU), an umbrella body of all business-related associations voiced its support for the traders’ cause but differed with them on the method of resolving the stalemate, arguing that the strike is bad for business and would undermine ongoing efforts for a negotiated settlement.

“Our position has always been dialogue, lobbying and advocacy, the PSFU boss, Mr Gideon Badagawa, said, adding: “I don’t think you can work by issuing ultimatum. What we can do is to confront government and other institutions with facts.”

Kacita declared an ultimatum to the commercial banks nearly two weeks ago but nothing much to alter their cause has happened.

In all meetings with the Ministry of Trade, BoU and Committee on Economy no way forward has been reached to the satisfaction of both parties.

The PSFU boss said the issue is the law, which his organisation will take a lead in agitating for its change.
“Whether we take the banks to court we shall lose. Because our people actually signed those loans whose interests rates are charged according to how the economy performs,” Mr Badagawa said.