Commentaries | Apr 10,2021
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]
Commentaries | Apr 10,2021
Radar | Oct 26,2019
Sunday with Eden | May 18,2019
Radar | Oct 03,2020
Viewpoints | Jan 25,2020
Photo Gallery | Mar 17,2019
Sunday with Eden | Jul 08,2023
Viewpoints | Feb 20,2021
Radar | Oct 31,2020
Fortune News | Dec 25,2021
Photo Gallery | 96741 Views | May 06,2019
Photo Gallery | 88924 Views | Apr 26,2019
My Opinion | 67168 Views | Aug 14,2021
Commentaries | 65760 Views | Oct 02,2021
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...
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)...
Apr 6 , 2024
In a rather unsettling turn of events, the state-owned Commercial Bank of Ethiopia (C...
Mar 30 , 2024
Ethiopian authorities find themselves at a crossroads in the shadow of a global econo...
Apr 20 , 2024
Ethiopia's economic reform negotiations with the International Monetary Fund (IMF) are in their fourth round, taking place in Washington, D...
Apr 20 , 2024 . By BERSABEH GEBRE
An undercurrent of controversy surrounds the appointment of founding members of Amhara Bank after regulat...
An ambitious cooperative housing initiative designed to provide thousands with affordable homes is mired...
Apr 20 , 2024 . By AKSAH ITALO
Ethiopia's juice manufacturers confront formidable economic challenges following the reclassification of...