Latest News: When Trade Unions Become Cash-Loan Operations

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The launch of the Free Trade Union Movement (FRETUM) marked a pivotal moment for trade unions in Botswana, providing an opportunity for leaders like Cde Allan Keitseng, President of the Trainers and Allied Workers Union, and Cde Kaboda Phillip, Secretary General of the Botswana Government Workers Union, to address a concerning trend within the movement.

It has become apparent that some civil servants are joining trade unions primarily to access loans, with their activism limited to recurring cycles of borrowing and repayment—often to sustain personal financial needs rather than advancing worker rights.

Cde Keitseng expressed his concerns, stating, “Trade unions are losing the grip of trade union ideology; they are being commercialised.” He emphasized that when profit motives drive union activities, it leads to unhealthy competition rather than unity. “Why compete when all you should be doing is bringing workers together? Why should we be disturbing each other?”

While unions do require funds to operate effectively, a proper balance must be maintained between commerce and genuine trade unionism. To illustrate the dangers of misplaced priorities, Cde Phillip shared an example of a union member who took a P12,000 loan to buy a laptop for their child. Later, when that child falls ill, the same member struggles to afford quality healthcare, revealing how financial decisions can backfire.

FRETUM aims to empower union members through education and awareness programmes that shed light on financial matters, enabling unions to make informed decisions when venturing into businesses. Cde Keitseng highlighted some of the pitfalls, citing cases where unions invested in shares, only to find themselves employers—firing employees and then seeking legal recourse against themselves once the company faced layoffs and collapse. Such risky investments often end badly, especially when unions are unaware of the inherent dangers and responsibilities involved.

“Our goal is to correct these mistakes,” Cde Keitseng stated. “We want unions to understand why they should be in business and that, in the long run, their rights should not be subsumed by profit-driven objectives.” The enlightenment provided by FRETUM will also help unions engage in ethical, morally upright businesses.

Cde Phillip was particularly critical of union leadership that, instead of empowering members, has become self-serving. “Today some unions have gotten wealthy at the expense of their members,” he said, later warning that “as we get poorer, unions get richer,” underscoring the need for financial discipline. FRETUM will prioritize prudent fiscal management to protect members from misappropriation and reckless spending.

Lastly, Cde Keitseng expressed alarm over the unethical use of financial resources, noting the growing phenomenon of “capture,” where leaders manipulate unions’ wealth and influence for personal or political gain. “We hear talk of people being captured, and we are seeing it in our midst. Nowadays, trade unions use financial resources to exert influence over others,” he concluded.

This development underscores the urgent need for fiscal responsibility and integrity within Botswana’s trade union movement, with FRETUM leading the charge to safeguard members’ interests.

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