The employees of the four state-owned financial institutions - the Commercial Bank of Ethiopia, the Construction and Business Bank, the Development Bank of Ethiopia and the Ethiopian Insurance Corporation -were recently given salary raises.

The government should be commended for introducing these raises without any pressure as well as entitling the employees to a four-month back pay. These measures demonstrate that the supervising agency which administers these institutions, which has been practically non-operational for the last three years, is active.

The escalating cost of living, sometimes on a daily basis, is knocking on the door of each and every citizen. Employees who used to be regarded as being highly paid are now finding that their remunerations are no more "high" owing to rising inflation.

This escalating inflation is precipitating salary raises by employees of all governmental organizations.

Given that the problem caused by the soaring cost of living is not limited to state-owned financial institutions only, we hope that the government will make salary raises for employees of other institutions as well. All state-owned enterprises must be able to make good pays if they are to be competitive.

The issue of salary raise is not a matter of concern to governmental organizations alone. The private sector and NGOs are also facing similar questions. As such they also need to make a salary raises commensurate with the sky-rocketing inflation.

Having said that, however, one thing should be underscored here; in as much as it is incumbent upon employers to raise wages, workers are expected to work harder so that their employers can pay them better, and not to demand a raise that is beyond their employers' means. Otherwise, the employers will be forced to go out of business, which means that they will become unemployed.

This balance between the obligations of the two parties on the part of employers to raise wages and employees to be reasonable in their demands and to work harder should be maintained.

It should, however, be understood that the effects of the spiralling cost of living cannot be mitigated by a salary increment alone. It is imperative to explore options aimed at keeping prices down.

Coupled with this, the actions of traders, which are injurious to consumers, should be closely monitored with a view to take the appropriate corrective measures without violating the spirit of a free market.

For instance, the stores dotting Addis Ababa must be put to use in such a way that they solve problems, and not create them. They should not become facilities which are the subject of scheming, intrigues and conspiracies to get rich quick illegally; they need to become centers of development and fair trade that serve the public.

Increasing production and productivity also needs to be looked at seriously as one means of dealing with inflationary pressures as they are instrumental in stabilizing prices.

We believe that through the three strategic mentioned above - salary raise, strict monitoring of traders as well as increasing production and productivity - it would be possible to withstand the crippling effects of the rising cost of living.

It is unnecessary to cause ruckus and disrupt peace while taking these measures; they should be effected in a spirit of understanding and cooperation. Employers should not wait for employees to demand a salary raise to make an adjustment for inflation. On their part, employees must refrain from making demands or taking actions that would break the back of their employers.

We need to have a dialogue on the subject wherein the public expresses its opinion and professionals provide explanations and propose solutions. This is a job which should be done by the mass media.

Price increases that are the result of the hike in the world oil price are beyond our control. But we must put a stop to unjustified price increases on the pretext that the price of oil has soared. Towards this end we need to have discussions to distinguish price increases which are attributable or otherwise to oil price rise.

What about the case of surtax?  Although it was declared at the time it was introduced that it would be applicable to luxury goods, it is not being levied on items such as milk. Revisiting the application of this tax so that basic items are no longer taxable under it can help to lower the prices of these goods.

Let all of us discuss the matter and seek solutions for it. Let's follow the lead of the government and make salary adjustments to workers who are severely affected by the rising cost of living.