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Private Sector Reports “Positive Results” in Wage Increase Negotiations

Private Sector Reports “Positive Results” in Wage Increase Negotiations

The Confederation of Economic Associations (CTA) announced on Monday, September 1, that positive results have been achieved in negotiations over proposed salary increases, noting that discussions are proceeding in a “calm and flexible” manner.

“There is a need to maintain jobs, and the possible results have been achieved, acknowledging the existing difficulties. Naturally, life is challenging not only for the average citizen but also for the employer,” explained Victor Miguel, representative of the organization.

Speaking after another session of the Advisory Labor Commission, which presented and validated the memoranda of understanding on the process of negotiating sectoral minimum wages, Miguel stated that the consensus reflects the current state of the country’s economy, stressing that compliance with the approved minimum wages is mandatory.

According to the official, the agreement reached at the meeting will be submitted to the Council of Ministers, while the National Confederation of Free Trade Unions of Mozambique (Consilmo) considers the proposals “unsatisfactory.”

The last minimum wage increase in Mozambique came into effect on April 1, 2024, ranging from 3% to 10.53%, depending on the sector. Updates covered eight distinct economic areas, with the new values proposed by the Advisory Labor Commission and subsequently approved by the Council of Ministers. Examples include:

  • Fisheries sector: 4,941 meticais (~USD 77)
  • Agriculture, livestock, hunting, and forestry: 6,338 meticais (~USD 99)
  • Industrial and semi-industrial sector: 6,531 meticais (~USD 102)
  • Large-scale extractive industries: 14,183 meticais (~USD 222)
  • Microfinance sector: 15,741 meticais (~USD 246)

CTA data indicate that 908 companies were vandalized during the protests following the October 2024 elections, with 60% still having no timeline for resuming operations. The destruction affected not only commercial infrastructure but also caused damage to public and private assets, disrupting the supply of essential goods and services in several regions of the country.

Source: Diário Económico

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