Flooring minimum wages is a global challenge. It is complex as several variables have to be considered. This is vital as it promotes fair resources distribution, protects workers against unduly low wages and solves the inequality in living standards. Minimum wage floor is also an element for policies development seeking to reduce poverty levels. This issue proves quite challenging to developing countries where the financial ability of workers is contrasted with their economy’s ability to pay them.
The government of Ethiopia is planning to set minimum wage rates in its Growth and Transport Plan II. This is after the country hosted International Trade Union Confederation forum with help of the Ethiopian Trade Unions Confederation (CETU). During the forum, minimum wage floor in Africa was put to discussion. Abdulfetah Abdullah, Ethiopia Minister of Labor and Social Affairs said that the government was working towards the betterment of citizens. This was by creating as many jobs for the people and expanding attraction of labor-intensive external direct investments. He added that there was a need for government to consider the dominant industries in the country with its ability to afford custom wages.
Further, the government has to also deal with the excess labor force in the country that needs to be assimilated in such industries. Following this, Minister Abdullah underscored the country’s ability to form a specific minimum wage floor soon. He cited the industries’ ability to pay to workers and the worker’s demands of a ‘fair pay’.
The minister revealed that the government resolved to have numerous discussion stages with employers and employees together with other key stakeholders. He defended Ethiopia saying that just because they had not yet floored minimum wage rates did not mean that the economy was the worst. This comment was directed to those comparing Ethiopia with other countries that had already settled on minimum wage floor.
Minister Abdullah noted the importance of all African countries to set minimum wage rates. This would deal with extensive challenges like extreme poverty levels, unaffordability of education, inequality, basic needs problems and high inflation levels. Sharan Burrow, Secretary-General for the International Trade Union was keen to note that Ethiopia had lagged behind on settling on a minimum wage rate. This was despite the fact that the country was successfully gaining economic development through job creations.
Sharan Burrow urged the African Union to take up responsibility in pushing its member states to adopt a minimum wage floor. This would enable people to fulfill their basic needs while living with dignity. She was seconded by Kassahun Follo who is the president of Confederation of Ethiopia Trade Union. He said that the Ethiopian union was also urging the government to work towards flooring minimum wages. Further stressing that workers’ satisfaction with salaries would boost production levels while smoothening communication in the country. Kassahun also noted that in efforts pushing for minimum wage floor, there was already an improved declaration presenting a solution to this challenge.
