Private sector still has no proposal for new minimum wage – Mozambique

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Private sector still has no proposal for new minimum wage – Mozambique

5:34 CAT | 01 Mar 2017

O País

The private sector meeting on Tuesday to discuss the proposed increase in the minimum wage ended without consensus being reached.

Representatives of the eight economic sectors participated in the meeting. All sectors agreed that 2016 was an atypical year for the national economy and, as a result ,there were inconsistencies in the economic balance presented by the Labor Advisory Commission’s 2016 Economic and Social Plan (PES).

According to CTA representative Victor Miguel, PES 2016 makes a positive assessment of the national economy, which entrepreneurs question.

“The data presented by the Labour Advisory Committee regarding the balance of PES are, in our view, unrealistic. There are data that are very inconsistent. In some sectors it looks like the economy was firm or very good which, in practice, is not what we have found. The data are far better than the reality experienced by our companies,” he said.

Entrepreneurs say that any proposal presented must match the financial reality of companies, at the risk of strikes or bankruptcies as a result of not being able to pay.

“The minimum wage is calculated on a formula. Wages based on the macroeconomic data presented would be unsustainable. Companies would close, and operators who tried to work would be confronted every day with strikes for non-payment of wages. If the documents move forward as they are, we can anticipate a major crisis,” Miguel stated.

The meeting will continue to work towards a consensus proposal agreeable to the committee, which represents companies both affiliated and not affiliated with the CTA. As soon as there is a definite proposal, it will be taken for discussion with the Mozambican Workers’ Organization (OTM). The new minimum wage will take effect on April 1, 2017.

Source: O País