Mozambican bosses, workers and unions “surprised” by the wage increase

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Mozambican bosses, workers and unions “surprised” by the wage increase

7:34 CAT | 21 Apr 2017

Voa (File photo)

Workers talk about poverty and employers admit to bankruptcy

The increase in minimum wages stipulated by the Mozambican government has already drawn reaction from businesspeople and trade unionists.

The government acknowledges that the increases were very small, but the Confederation of Mozambican Economic Associations (CTA) and the Mozambican Workers’ Organisation (OTM) say they were surprised by the figures.

Increases were in the order of 10 to 21 percent, but still did not earn workers’ approval.

“It’s not what we expected, that’s not what Mozambicans expected, but as long as it’s an increase, it’s always welcome,” one worker said, while another added that “it’s little, no way, everything seems to go on in that life of misery as always”.

Vítor Miguel, president of the CTA Labour Policy and Social Action Department, acknowledges that the adjustment does not satisfy the workers, but neither, he said, did it please the employers, since industrial dynamics showed continuing decline.

The percentages approved could contribute to company bankruptcies and reduce numbers in work, Miguel said.

“We are looking at an extremely difficult year meeting these salaries. Life is difficult, but companies are not in a position to solve these kinds of problems. There will, in fact, be a lot of problems from the companies’ side,” he said.

For the OTM-Central Sindical, the increases approved by the government came as a surprise, as it expected the raise to restore workers’ purchasing power, the union organisation’s Helena Ferro said.

“Our partner CTA and employers came out very negatively (on this increase), but we made a minimum food basket for a Mozambican family and stipulated an increase of 15,000 meticals (220 dollars),” Ferro said.

The increases announced brought the minimum wage in Mozambique to 3,642 meticais (about US$54.00), with the hunting and forestry sector the least well paid, while highest paid were banking and insurance workers, with a minimum salary of 10,400 meticais (US$160.00).

Source: Voa Portugues