The Executive understands that, from the point of view of economic stability and jobs, the minimum wage that is being demanded by the trade unions, which announced, yesterday, a general strike for the 20th of this month, is not sustainable, taking into account the economic situation that the country is experiencing
The national director of Labor, António Estote, said that the Executive is in favor of an increase in the national minimum wage in line with job stability, a reduction in informality and an increase in productivity in line with economic growth. According to António Estote, from the point of view of economic stability, the minimum wage demanded by trade unions, in the order of 245 thousand kwanzas, is not sustainable, taking into account the current financial situation of families, companies and the Angolan State.
According to the official, both the Executive and the trade unions agree that there has been a loss of workers’ purchasing power resulting from the increase in general price levels. But, he explained, to increase the level of the minimum wage, a balance must be guaranteed between salary increases, employment, informality, public finances, the sustainability of mandatory social protection, and the maintenance of economic activities.
“And an increase in the minimum wage of around 245 thousand kwanzas means, indirectly, that some companies will be forced to close their doors or send a significant part of their workforce to unemployment,” he warned.
Maintain balance
António Estote reinforced the need to maintain balance, with the establishment of an increase in the minimum wage that is real and possible in the country’s current economic context. Furthermore, António Estote said that it is the Executive’s proposal to make, in the short term, gradual and specific increases that are not necessarily in the terms required by the unions. “It is necessary to take into account that when salaries are increased, there is the principle of non-retroactive salaries. And if we increase the minimum wage in the same way as what is being demanded by the unions, we will not be able to back down if the effect is contrary.
So, what is recommended is to make gradual increases because we are looking at the short term and replacing purchasing power”, he pointed out. The National Director of Labor also said that major measures must continue to be taken in terms of the supply of goods and services, focusing on the promotion of national production, the increase in public services and their greater efficiency and the stabilization of general price levels .
António Estote reiterated that the limit for increasing the national minimum wage is in a range between 50% and 75%, and the plenary of the National Social Repair Council decided that, within 45 days, the Executive and social partners will sit again to discuss an alternative model for setting minimum wages, taking as an assumption the type of company, say micro, small and medium-sized companies, around the definition of the national minimum wage.