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Ethiopia: a minimum wage level being evaluated
On 11th and 12th April a meeting was held in Addis Ababa, Ethiopia, between the trade union organisation IndustriAll and its affiliates in the manufacturing sector, notably for textiles and garment-making. The objective was to lay the foundations for a study on the introduction of a national minimum wage.
A set minimum wage would not necessarily be the ideal solution, according to IndustriAll. The organisation cited the cases of Cambodia and Bangladesh, where the introduction of a minimum wage has not allowed the establishment of decent salaries. While a minimum wage is an indication of the government's concern for working conditions, lack of flexibility and the possibility that the wage rate may not be inflation-linked are pointed out as faults in the system.
"A certain amount of flexibility would allow the agreements to be reconsidered, taking into consideration the extent of the workload, qualifications and other issues linked to the specific industry," according to Jenny Holdcroft, Policy Director of IndustriAll. "Industry-specific negotiation is a crucial help in reinforcing the unions' bargaining power. However, it will take time to arrive at an agreement, due to the current absence of an established system for reaching it, while actions to increase trade union power must be allowed."
IndustriAll's Ethiopian affiliates have agreed to start talks with the International Labour Organisation (ILO), in order to set up wage-fixing mechanisms. This willingness has already been shared by two companies, however limited this may be: Ayka's textile workshop increased its basic salary from ETB600 to ETB990 (€40.6), while the Bahirdar workshop raised it to ETB915 (€37.5).
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