Workers demand action as minimum wage Bill stalls

Factory workers have asked candidates vying for the Workers’ Members of Parliament seats to fast-track the enactment of the Minimum Wage (MW) 2015 Bill into law.

The minimum wage is the lowest remuneration on which employers are expected to base salaries. It is a legally enforceable wage that cannot be reduced by either an individual or a collective agreement.

A section of factory workers, in an interview with New Vision, said the current minimum wage is outdated and unenforced, leaving many workers vulnerable to exploitation. Uganda’s present minimum wage, set at sh6,000 (about $1.60), has not been revised since 1984.

The MW Bill seeks to establish a mechanism for determining the minimum wage and preventing the exploitation of employees, particularly by investors.

Workers also demanded adequate personal protective equipment to guard against factory risks and injuries, saying many employers do not comply with the law.

A casual worker at a mattress foam factory in Ntinda, Kampala, who preferred anonymity, said, “Our bosses exploit our labour and pay us peanuts to the extent of earning sh100,000 per month. It hardly meets economic obligations for house rent, food, medical, and school fees for children.” She added that Uganda lacks a legally enforceable national minimum wage, leaving employers to pay based on their own discretion and workplace conditions.

Another casual worker from a steel fabrication company in Buikwe district said his employer does not provide protective gear, exposing workers to injuries and occupational diseases. “Last year, my workmate was injured in the factory. The management provided minimal medical care and never compensated him. He is incapacitated with no workman’s compensation, which is mandated to a worker. I want Parliament to fight for workman’s compensation rights,” he said.

These concerns were raised during a meeting organised by State Minister for Investment Evelyn Anite and the Uganda Investment Authority (UIA), attended by over 100 factory workers at Namanve Industrial Park.

The meeting was also attended by Arinaitwe Rwakajara, Chairperson of the NRM Central Executive Committee Workers’ League, alongside other workers’ leaders.

The meeting, themed “Investor Rally”, aimed to appreciate workers’ contributions and discuss welfare issues, including the minimum wage, working conditions and social security.

Anite noted that Namanve Industrial Park has 44,000 workers who face various challenges. She said President Museveni recently directed her and Rwakajara to jointly identify issues affecting factory workers so that the government can address them.

“Museveni is willing to go ahead to fix the minimum wage,” she said. She added that over 80,000 factories employ about 1.3 million Ugandans, compared with only 490,000 jobs within government, which cannot absorb all graduates. She said the enactment of the Minimum Wage Bill 2015 should consider sectoral differences, arguing that remuneration for casual workers differs from that of professionals, such as engineers, who undergo four years of training.

Rwakajara said they have held discussions with both workers and employers on how to protect their rights in Parliament. He noted that workers are primarily interested in the enactment of a minimum wage law. “The discussion is going on. President Yoweri Museveni has endorsed it. We expect it to be passed into law and be implemented soon,” he said.

He added that the NRM government recognises the fundamental role of workers in national development. According to him, no transformation can occur without workers, who are the engine of the economy.

Rwakajara stressed the importance of good policies and sound leadership to support workers and attract investment. He said stakeholders must begin discussing the MW Bill 2015 as a means of harmonising relations between workers, employers and government.

“The MW Bill, if enacted, will improve the relationship between employers and employees. I want to assure all workers that we shall protect you because the NRM government respects the labour force,” Rwakajara said.

He explained that tripartite boards, appointed by the Minister and comprising representatives from workers’ organisations, employers and ministries such as Finance and the Bank of Uganda, should establish minimum wage boards to determine sectoral minimum wages. He said Uganda's stability makes it attractive to investors, unlike regions affected by conflict such as South Sudan, Sudan, the Democratic Republic of Congo and the Central African Republic.

Why Museveni rejected Minimum Wage Bill

In February 2019, Parliament passed the Minimum Wage Bill 2015, which sought to establish a mechanism for determining minimum wages across different economic sectors. The Bill was forwarded to President Yoweri Museveni for assent.

Rwakajara, the mover of the Private Member’s Bill, said Museveni rejected it because he believed the existing law was adequate and feared that a fixed minimum wage might discourage investors and harm the economy. He added that several gaps and concerns had been raised, which must now be addressed before the President signs the Bill into law.

“I want to assure you that the minimum wage will be assented to soon. We have had discussions with all stakeholders, including the Association of Employers, and we have agreed that a minimum wage is necessary now,” Rwakajara said.

He supports sector-specific minimum wages, arguing that a single national wage cannot cater for Uganda’s differences in education levels and working conditions.

Workers’ MP Aspirants speak

Workers’ MP Margaret Rwabushaija (NRM) said Uganda is the only country in the East African region without a legally enforceable national minimum wage. She said laws affecting workers’ welfare must be addressed urgently.

Agnes Kunihira, NRM flag-bearer for the Female Workers’ seat, said President Museveni has emphasised that the minimum wage should be determined by sector because sectors contribute differently to the economy.

Workers’ MP Abdullah Byakatonda (Independent) said the President intends to meet workers’ representatives to chart a way forward and stressed the need for national dialogue on wages.

Hannah Mwesigwa, an aspiring MP for the National Female Workers’ seat, said it is shameful that Parliament passes important legislation such as the Minimum Wage Bill but some Bills are rejected. She argued that workers contribute a major share of Uganda’s GDP, and their efforts must be rewarded through fair wages.

Former Workers’ MP Bruno Pajobo said the Minimum Wage Bill is close to being enacted. Labour advocates echoed this view, noting that the government has failed to address worker exploitation. He said establishing a national minimum wage remains a priority for labour unions and activists.

Aspiring MP Stephen Abima called on the Minimum Wages Advisory Board, a tripartite body that analyses wage trends and recommends minimum rates to the Minister of Gender, to push for the enactment of the Bill into law.