RES Corporation Spent E954 Million on Salaries & Wages in 2022/23 Financial Year

The sugar industry is highly instrumental in the country’s economy. The Royal Eswatini Sugar Corporation (RES) recently released its 2023 Integrated Annual Report which reveals that a total of E954 million was spent on salaries and wages.

The report by the corporation reveals that a total of 4 206 employees were employed at year-end, compared to 4 593 recorded at the same time in 2021/22.

“In the year underreporting, 1 809 were permanent – including fixed-term employees – compared to 1 864 recorded in 2021/22, while 2 372 were seasonal employees, compared to the 2 729 recorded at the same time last year. Although the number of seasonal employees fluctuates according to operational requirements, this year, the ongoing expansion of land-under cane at Homestead saw an increase in the number of seasonal employees.”

The Eswatini Sugar Association (ESA) in its Integrated Annual Report for 2021/22 notes that the industry remains key to the Eswatini economy, accounting for approximately 6% of the country’s gross domestic product (GDP) with the cane growing and sugar milling components contributing substantively to the agriculture and manufacturing sectors, respectively.

“The sugar industry is also the largest non-government employer in Eswatini. The multiplier effect of the formal and informal downstream economic activities, which derive from the main activities of the industry and direct employment, is immense,” notes ESA’s Integrated Report.

RES further notes that the total manpower cost stood at E954 million at year-end (2022: E883 million), showing a E73 million increase from last year, while discretionary overtime exceeded budget by E27m due to the above-normal breakdowns experienced in the plant.

In terms of staff turnover, a total of 22 permanent employees resigned from RES employment for the reporting period, 5 were from middle management, and 3 came from T16 and above. RES notes that these figures show a healthy turnover rate, which is substantially below the universal 5% threshold.

The company states that due to several start-up teething problems, they spent more on overtime than had budgeted for.

“Nearly E110 million has been spent on overtime, against a budget of E83 million. In the majority of cases, the E27 million over-expenditure arose from the several factories’ start-up teething problem, as well as breakdowns experienced during the difficult milling season this year which resulted in higher lost time available (LTA). As a result, the overtime expenditure was 2% above the standard 10% of the total wage bill.”

Moreover, RES reported a E4.15 billion revenue for the reporting period and distributed E179 million as dividends to shareholders. The corporation also divulges that corporate tax paid to the government was E29 million, while E270 million was other tax remitted to the government.

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