Viewpoints | Mar 26,2022
Trade unions are planning a rally on Labour Day to demand better wages and improved safety measures, claiming the authorities have ignored their plights.
The decision to hold a rally came after multiple attempts to engage with the Ministry of Labour & Skills and the Prime Minister’s Office went unanswered, according to Kassahun Follo, president of the Confederation of Ethiopian Trade Union (CETU).
In recent years, labour unions have advocated for better wages and improved working conditions in Ethiopia, one of Africa’s fastest-growing economies. However, the country has been struggling with high inflation and a post-war economy, making it difficult for the government to implement new policies. The Confederation’s unanimous decision to hold a rally on Labour Day highlights the increasing frustration among workers, who feel that the government has not heard their voices.
Despite the government’s promises to address the concerns of labour unions, the delay in legislating minimum wage laws has led to mounting frustration among workers. Many workers struggle to provide for themselves and their families with the current minimum wage, which has plummeted in recent years due to inflation.
Addressing the annual general assembly of the Confederation, Kassahun revealed that the rally would take place in Addis Abeba, allowing workers to express their concerns about low wages and job security issues, as well as the difficulties they face when trying to form unions.
“We can’t handle the rising cost of living,” Kassahun said.
The Confederation has prepared a study on minimum wage this year, patiently waiting, considering the overall condition the country was in during the war period, according to the labour leader.
The implementation of the minimum wage, revising the income tax rate, and the reconstitutions of the labour union advisory board were demands put forth by the trade unions.
Despite several attempts, officials of the Ministry of Labour & Skills were unavailable for comment.
The delay in legislating the minimum wage law, which has been in the making for several years, was also questioned by members of Parliament two weeks ago. The Minister of Labour & Skills, Muferihat Kamil, told MPs the post-war economy would make it difficult to enforce it. However, leaders of several trade unions voiced their misgivings during the general assembly last week, with many demanding the federal government involve the trade unions in the policy-making process.
According to Gebeyehu Adugna, president of the Federation of Farm, Plantation, Fishery & Agro-industry Trade Unions, the Minister’s explanation for the delay in legislating the minimum wage law did not consider the inflationary burden workers carry.
“We’ve paid till the last drop of sweat,” he said, urging the Confederation to make their voices heard.
Labour leaders say most workers cannot provide for themselves with wages that have plummeted to providing no more than a meal. They pronounced their wishes “not to stir anything” but merely needed their question of survival to be heard.
However, economists argue that setting a minimum wage and lowering the income tax of waged workers can only bring short-term solutions, with an inflation rate averaging around 33pc.
Atlaw Alemu(PhD), an economist at Addis Abeba University, believes policymakers need to tame inflation, which might outrun the minimum wage if not addressed. He argued that setting a minimum wage now will provoke employers to hold off hiring workers, contributing to unemployment.
Unemployment has remained a major challenge for Ethiopia over the years. The country has one of the highest unemployment rates in Africa, with an estimated 19.1pc of the population being unemployed, according to data released in 2021. Millions of Ethiopians are forced to work in the informal sector, particularly in agriculture, with limited employment opportunities.
Desta Berhe, president of the Industrial Federation of Ethiopian Financial Institution Trade Unions, attended last week’s assembly held at the Confederation’s headquarters on Africa Avenue (Bole Road). He attributed the call for the rally to the “passive approach” of the Ministry.
“It hasn’t done much over the years,” he said.
Leaders see the next few weeks as a time to organize an action plan for the rally that allows workers to engage peacefully, according to Ayalew Ahmed, deputy president of CETU.
“It needs to happen pragmatically,” Ayalew told Fortune.
Kassahun cautioned that preserving the unity of workers is important.
“We need to have a sense of solidarity,” Kassahun said.
Labour leaders expect the rally to draw a large crowd of workers struggling to make ends meet in a difficult economic environment.
PUBLISHED ON
Apr 08,2023 [ VOL
24 , NO
1197]
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