CONSILMO asks Govt to readjust contracts with contractors / privatise EDM, LAM, Petromoc – Mozambique

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CONSILMO asks Govt to readjust contracts with contractors / privatise EDM, LAM, Petromoc – Mozambique

2:48 CAT | 02 Mar 2017

Against a backdrop of companies laying off workers due to the difficult economic situation that the country is experiencing, the National Confederation of Independent and Free Trade Unions of Mozambique (CONSILMO) argues that the solution is for the government to adjust contracts signed with contractors to oblige them to not cut their labour force.

“The government should review the contractual agreements already entered into with contractors with a view to ensuring that they can, in the context of the devaluation of the metical, progressively from 2014 to 2016, benefit from adjustments to continue ongoing projects and thus contribute to preventing companies going bankrupt as a result of the economic and financial crisis that has hit them,” CONSILMO secretary general Jeremias Timana says.

Timana added that the union wanted the government to liberalize transportation tariffs so that the activity could be carried out profitably.

“We recommend government consider the possibility of liberalising transport prices, according to the operational costs and according to existing and consolidated models in other countries. We also recommend creating mechanisms that encourage the maintenance of vehicles in the country.”

CONSILMO also calls for the privatization of, among others, EDM, LAM and PETROMOC in order to return them to profitability, and conversely deplores the precarious conditions under which some security company employees in the country work.