Mauritius holds tri-partite meet for salary compensation; mulls minimum wage
Acting Prime Minister and Finance Minister Rashid Beebeejaun said that the slow global economy recovery and the Euro Zone is pulling down Mauritius’ domestic economy as the island is almost entirely dependent on international economic conditions, particularly in Europe, and remains exposed to further weaknesses in the global growth. (Image: The Hindu)
The tripartite committee comprising representatives of the government, employers and workers organizations, met for the first meeting for salary compensation on October 2, 2014.
In another important development, an ILO Consultant, François Eyraud, has already prepared a draft Report on the National Minimum Wage in the private sector, which will be subject to discussion during a tripartite workshop on 15 and 16 October.
For the next meeting, a technical committee co-chaired by the Ministry of Finance and Economic Development and the Ministry of Labour, Industrial Relations and Employment, will be convened next Tuesday. The technical committee’s purpose is to work on the quantum for salary compensation.
Held under the leadership of the Acting Prime Minister and Finance Minister Rashid Beebeejaun, the first tripartite meeting aimed at determining the quantum of salary compensation meant for employees of both the public and private sector for next year.
The three main factors considered to calculate the quantum for the monthly additional remuneration are: loss in the purchasing power of the consumers, rate of inflation, which is estimated at 4% for 2014, and job preservation.
According to the Acting Prime Minister, the government is ready to engage in a dialogue with an equal contribution from both employers’ and workers’ representative to settle the salary compensation whilst considering the economic situation prevailing in Mauritius.
Rashid Beebeejaun said that the slow global economy recovery and the Euro Zone is pulling down Mauritius’ domestic economy as the island is almost entirely dependent on international economic conditions, particularly in Europe, and remains exposed to further weaknesses in the global growth.
Another possible factor that might contribute to the difficult economic environment is the GDP growth rate, which has been revised downwards at a rate of 3.5%.
However, he emphasised the resilience of the economy and mentioned that the construction sector went down by 6.7% in 2014 while most sectors have been showing positive signs of growth in the last months.
Regarding private sector investment, it has declined to 15% of the GDP currently against 20% in 2009.
He underlined that there is a need to strengthen the traditional markets to be able to reach the target of one million tourist arrivals.
The latter evoked the fact that the government has injected up to Rs 34 billion in social services for free transport for elderly and students, health care, education, subsidies and the likes.
Despite the decrease in employment rate, Beebeejaun said that the current figure which stands at 7.8% is still high, and mostly comes from the ranks of youth aged 16 to 24 years and women.
In addition, he mentioned that the inflation rate is under control and that it is important to maintain sustainable growth in various sectors particularly in the sugar sector, which will be facing more daunting challenges ahead with the current conditions of the world market and price cuts.