The Confederation of Economic Associations of Mozambique (CTA) says “no” to the resumption of the discussion on the adjustment of the minimum wage, which stagnated in April 2020. As a result, this year, the salary adjustment is at risk. The CTA’s position comes in the month the government said talks would resume. Speaking this Wednesday (16) to the press, the vice president of the CTA, Vasco Manhiça, explained that the Confederation’s position results from the lack of conditions for recovery, as private companies continue to be severely affected by the pandemic crisis. To illustrate his explanation, Manhiça reported that, in 2020, the business sector recorded estimated losses of around USD 1.1 billion, corresponding to 7 percent of the Gross Domestic Product (GDP), which culminated in the suspension of about of 90 thousand jobs. According to the source, these data resulted mainly from the impacts associated with the restrictive measures imposed by the Government, within the scope of containing the spread of the Covid-19 pandemic, as well as the drop in aggregate demand and macroeconomic distortions. Even with the relief of some measures, the CTA says that companies continue to resent the effects of the global pandemic. “As can be seen, despite the relief from the measures recently announced by the Government, which we greatly appreciate, as they will certainly contribute to revitalizing economic activity, national companies continue to resent the adverse context that characterizes our economy. after an absolutely black first quarter, they are, at this moment, trying to create bases for its revitalization, which will not be a sudden process”, affirmed the vice-president of the CTA. Exposing the problem that prevents the resumption of talks, Manhiça reaffirmed, in another development, that it was unthinkable for the CTA to go ahead with negotiations with the Government. “Trading in this circumstance is clearly the same as going to negotiate with someone who is in a coma,” concluded Manhiça. The announcement of the resumption of negotiations was made last April 21, by the Prime Minister, Carlos Agostinho do Rosário, in the Assembly of the Republic, in a session of responses by the Government to the deputies. However, in the month when negotiations are expected to continue, the private sector says there are no conditions. Given this reality, it appears that the increase in the minimum wage may not happen for the second consecutive year. (Evaristo Chilingue) Source: Carta de Moçambique
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