The Confederation of Ethiopian Trade Unions (CETU) has revealed concerning financial trends, indicating that its expenses have been increasing by an average of 18% over the past five years, outpacing a gross revenue growth of only 12%. This information was presented during CETU’s 20th Annual General Meeting, where a five-year audit committee report was shared with its members.
The audit report covering the fiscal years from 2019 to 2024 highlighted that while the organization recorded a profit of 3.948 million birr in the 2019/20 budget year, subsequent years saw a significant rise in expenditures. As a result, CETU’s revenue began to fall short of its expenses, leading to a decline in net capital.
The report warned that if current spending trends continue, CETU’s operational viability could be jeopardized, posing an existential threat to the organization. For the 2023/24 financial year, CETU had planned to generate over 81 million birr but ended up spending more than 89 million birr—105% of its budgeted expenditure.
The increase in costs has been attributed primarily to education and training projects funded by donors without proper planning. During the meeting, Kassahun Follo, President of CETU, emphasized the importance of addressing these financial issues to safeguard the interests of over one million workers represented by the union across 2,300 grassroots trade unions.
Kassahun also noted that despite facing resource constraints and operational inefficiencies, CETU remains committed to advocating for workers’ rights and addressing pressing issues such as minimum wage adjustments and income tax reductions.
The audit committee reported that out of 4,163 employee complaints filed in court since 2020/21, only 169 were resolved in favor of employees. This statistic underscores ongoing challenges within the legal framework supporting workers’ rights.
As CETU continues to navigate these financial hurdles, it has called for immediate action to address the plight of employees who are struggling to meet basic needs. The confederation reiterated its commitment to enhancing worker welfare and ensuring that their voices are heard in discussions about labor policies.
