Mozambique: Businesses concerned about impact of TSU on 2023 minimum wage discussions – Carta

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Mozambique: Businesses concerned about impact of TSU on 2023 minimum wage discussions – Carta

5:27 CAT | 09 Dec 2022

Photo: Confederação das Associações Económicas de Moçambique - CTA

In Maputo this Thursday (08-12), business representatives expressed concern about the impact that the government’s new Single Salary Table (TSU) will have on the readjustment of the minimum wages for the year 2023. The concern was expressed by the Confederation of Economic Associations of Mozambique (CTA) at the end of its 33rd ordinary General Assembly session.

“Members expressed concern about the potential impact of the Single Salary Table on minimum wage negotiations,” said Jorge Fernandes, chairman of the CTA Board of the Assembly.

The private sector’s concern arises from the fact that the government, within the scope of the wage reform through the TSU, has increased the minimum wage to be applied in the country from 4,750 to 8,750 meticais. With this, in negotiations for the readjustment of the minimum wage for 2023, it will defend that the private sector also raises the lowest wage to the aforementioned 8,750 meticais, an amount deemed too high by some employers.

“Usually, in the world of employability, it is common that if there is an increase on one side [e.g., public sector], there is automatically an increase on the other [the private sector]. Because of this, we are already reflecting on this,” said Fernandes.

Speaking to the press, the Chairman of the Board of the Assembly of the CTA also noted that members had during the session expressed dissatisfaction with the final content of the Fiscal Package, as, in their opinion, “it moves away from the spirit of stimulating the economy”.

“Members were equally concerned about the new proposal for the Cashew Law, which introduces a tax on the skin of the kernel, which will make the product more expensive and reduce competitiveness. There are currently 19 cashew nut factories [in Mozambique], but fewer than four are in operation. The members recommended the CTA management to continue to express concern about this in talks with the government,” Fernandes added.

During the General Assembly session, members approved the plan of activities and budget for 2023. The main objectives of the plan are to increase the productivity of public-private dialogue, deepen the institutional development of the CTA, ensure the competitiveness of the Mozambican private business sector and strengthen internal and external partnerships.

In 2023, the CTA also plans to go ahead with an assessment of the quality of services provided by the state at the Single Service Desk (BAU), with a view to adopting mechanisms to improve their quality in all provincial capitals.

“We will in 2023 continue to monitor the actions contained in the Economic Acceleration Package (PAE) by issuing private sector opinions that enable the effective implementation of these measures so that they have the desired effect, which is the acceleration of the economy,” Fernandes concluded.

By Evaristo Chilingue

Source: Carta de Moçambique