Fortune News | Mar 16,2019
Aug 14 , 2021
By Eden Sahle
Last Tuesday, I was asked by a friend to support a private international company in an interview process. They wanted to hire a general manager shortlisted after passing oral and written examinations. The company, which started operations in Ethiopia not long ago, was impressed with the bright young man who exceeded everyone's expectations.
The young man was well experienced, energetic, confident, polite, and full of new ideas. The company stated their confidence in his capabilities and their willingness to hire him. Surprisingly, they offered a 3,000 Birr monthly salary. Obviously, the job applicant was staggered and declined the figure, thanked everyone, and quickly left the room in disbelief and visible anger. He did not even make a counter-offer.
I did not blame him. His stable emotional state and politeness, even when his face showed disappointment was commendable. The company owners turned to me, looking confused about what had just happened and said they had offered the job applicant a good salary for an experienced leader.
“We came to invest in Ethiopia because of the low-cost labour promotion your country has done,” they explained. They boldly continued, “do not get this wrong, but in our country, employees who have his experience and skill cost a fortune but not in Ethiopia.”
Then the owners asked me if I knew what might have driven the man to leave an ongoing interview. All one needed to do was read his curriculum vitae. His monthly gross earning history records his minimum salary for a leadership position was 40,000 Br while his highest was 65,000 Br.
But the owners were quick to judge his CV. They were convinced he was lying about the figures. They were not bothered to confirm their doubts from his previous employers, whose contact address was stated in his application. When they were contacted, they verified the accuracy of his remuneration.
This sort of underpayment of employees is not new. It happens to all of us, although the extent might differ. Understandably, the nation is in a challenging position. With a fifth of the adult population unemployed, two-thirds of which comprises women, getting people something to do might seem like an immediate solution. But this undervalues Ethiopia’s human capital. Constant advertising of low-cost labour to foreign investors leaves employees underpaid and overworked. Workers in the manufacturing and agriculture sectors are the hardest hit.
Most people work hard for an income that hardly allows them to get by until the end of each month. It is a tragic fact that many people work for half a century without saving because they are not paid living wages. And while living costs continue to escalate, the unchanging wages enabling people to support themselves and their families. Under such conditions, people opt out of the formal labour market and may even choose to support themselves through illegal activity. This decline in workers harms innovation in the workforce because not every eligible worker contributes to the workforce.
The right to an adequate standard of living is a fundamental human right. It should be the priority of the country to make it possible for people able to access it. The lack of legal minimum wages for the private sector mandated by the government is leaving employees subject to abuse and unfair pay. Ensuring fair wages is complex and demands continuous study and update as the cost of living rises. This requires systemic policy change to benefit people.
Collaboration between workers’ unions, employers and policymakers will play vital roles in creating an enabling environment to raise living standards through living wages and incomes and paying professionals a deserving amount that recognises their education level and experience. People have a right to ask for salaries that allow them to thrive, not just survive.
PUBLISHED ON
Aug 14,2021 [ VOL
22 , NO
1111]
Fortune News | Mar 16,2019
Fortune News | Dec 25,2021
Sunday with Eden | Jul 08,2023
Fortune News | Dec 29,2018
Radar | Nov 07,2020
Fortune News | Dec 05,2018
Radar | Oct 26,2019
Fortune News | Aug 22,2020
Fortune News | Mar 16,2019
Photo Gallery | 97592 Views | May 06,2019
Photo Gallery | 89830 Views | Apr 26,2019
My Opinion | 67452 Views | Aug 14,2021
Commentaries | 65860 Views | Oct 02,2021
Editorial | May 02,2024
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
May 2 , 2024
For successive generations of Ethiopia's tax authorities, the chore of tax collection...
Apr 27 , 2024
The Prosperity Party (PP) - Prosperitians - is charting a course through treacherous...
Apr 20 , 2024
In a departure from its traditionally opaque practices, the National Bank of Ethiopia...
Apr 13 , 2024
In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...
May 3 , 2024
The feel-good life coaching industry would have people believe that success is not only about showing up in the swirling whirl of modern lif...
May 4 , 2024 . By BERSABEH GEBRE
Brook Taye (PhD), the director general of the newly established Ethiopian Capital Market Authority (ECMA), has issued a stern warning to com...
May 4 , 2024 . By MUNIR SHEMSU
Dreams of an agriculture sector unshackled from the whims of rain remain tethered to the struggling Minis...
May 4 , 2024
Large public projects exceeding 250 million Br will be required to use Building Information Modelling (BI...