Minimum wage. Why is Uganda in the woods?
COUNTRIES the world over, set a minimum wage, a mandatory lowest amount of money below which an employee should not be paid. In Uganda there have been protracted debates on whether or not to have a minimum wage.
By John Odyek
COUNTRIES the world over, set a minimum wage, a mandatory lowest amount of money below which an employee should not be paid. In Uganda there have been protracted debates on whether or not to have a minimum wage.
Wilson Owere, the chairman of the National Organisation of Trade Unions, proposes setting a minimum wage on a sector-by-sector basis. He says stakeholders from different sectors should be selected to suggest the minimum wages for their sectors.
He cites Kenya where a minimum wage is set on a sector basis. Such sectors include construction, plantations and industries.
“Having a minimum wage will improve industrial relations, give workers confidence and improve productivity,†Owere argues.
He adds that a minimum wage would help people get out of poverty. He says it would also enable workers earn money to provide for their basic needs, like housing, healthcare and education.
He argues that the East African Community countries should institute relatively similar minimum wage.
Rosemary Ssenabulya, the Federation of Uganda Employers Association executive secretary, also supports the idea of having a sector-by-sector minimum wage.
“It should be employers and workers representatives to agree on minimum wage,†she notes.
Ssenabulya says a minimum wage can help in determining a premium for a health insurance scheme and NSSF contributions. “It helps to remunerate the lowest wage earner so he/she gets a reasonable pay,†she says.
She, however, cautions that if the wage is set by the Government without consulting employers, it could affect the financial positions of companies.
She says some employers are sensitive to the pay of workers and set fair salaries even without a minimum wage in place.
Ssenabulya explains that a minimum wage of sh63,000 had been proposed by Parliament in 1998, but is yet to be approved by President Yoweri Museveni.
Workers Member of Parliament, Dr. Sam Lyomoki, says it is a shame Uganda has no minimum wage.
“We have been pushing it for the past 15 years. In 1999, Parliament urged the President to push for minimum wage, but that hasn’t happened,†Lyomoki remarks.
Lyomoki argues that President Museveni was advised wrongly by Western governments and donors that a minimum wage shouldn’t be fixed because of liberalisation, leaving market forces to ‘fix’ the wages.
He explains that a minimum wage protects unskilled people from exploitation by unscrupulous employers.
Lyomoki, however, warns that if a minimum wage is set too high, this can lead to unemployment and cause companies to collapse.
“If it is too low, workers are exploited. Therefore, what we need is to find a balance that is agreeable to everyone,†he counsels.
He attacks some big construction companies, which pay workers sh2,000 per day instead of at least sh10,000.
“A minimum wage improves motivation and productivity,†he states.
Lyomoki said the Minimum Wages and Council Board Act of 1964 mandates the Head of State to approve a minimum wage. He said Act provides for a minimum wage of sh60 per month, which is ridiculous.
The International Labour Organisation notes that a minimum wage in Africa is a blunt instrument that may not confront economic insecurity.
Now the big question: Who is against the workers of this land?
COUNTRIES the world over, set a minimum wage, a mandatory lowest amount of money below which an employee should not be paid. In Uganda there have been protracted debates on whether or not to have a minimum wage.
Wilson Owere, the chairman of the National Organisation of Trade Unions, proposes setting a minimum wage on a sector-by-sector basis. He says stakeholders from different sectors should be selected to suggest the minimum wages for their sectors.
He cites Kenya where a minimum wage is set on a sector basis. Such sectors include construction, plantations and industries.
“Having a minimum wage will improve industrial relations, give workers confidence and improve productivity,†Owere argues.
He adds that a minimum wage would help people get out of poverty. He says it would also enable workers earn money to provide for their basic needs, like housing, healthcare and education.
He argues that the East African Community countries should institute relatively similar minimum wage.
Rosemary Ssenabulya, the Federation of Uganda Employers Association executive secretary, also supports the idea of having a sector-by-sector minimum wage.
“It should be employers and workers representatives to agree on minimum wage,†she notes.
Ssenabulya says a minimum wage can help in determining a premium for a health insurance scheme and NSSF contributions. “It helps to remunerate the lowest wage earner so he/she gets a reasonable pay,†she says.
She, however, cautions that if the wage is set by the Government without consulting employers, it could affect the financial positions of companies.
She says some employers are sensitive to the pay of workers and set fair salaries even without a minimum wage in place.
Ssenabulya explains that a minimum wage of sh63,000 had been proposed by Parliament in 1998, but is yet to be approved by President Yoweri Museveni.
Workers Member of Parliament, Dr. Sam Lyomoki, says it is a shame Uganda has no minimum wage.
“We have been pushing it for the past 15 years. In 1999, Parliament urged the President to push for minimum wage, but that hasn’t happened,†Lyomoki remarks.
Lyomoki argues that President Museveni was advised wrongly by Western governments and donors that a minimum wage shouldn’t be fixed because of liberalisation, leaving market forces to ‘fix’ the wages.
He explains that a minimum wage protects unskilled people from exploitation by unscrupulous employers.
Lyomoki, however, warns that if a minimum wage is set too high, this can lead to unemployment and cause companies to collapse.
“If it is too low, workers are exploited. Therefore, what we need is to find a balance that is agreeable to everyone,†he counsels.
He attacks some big construction companies, which pay workers sh2,000 per day instead of at least sh10,000.
“A minimum wage improves motivation and productivity,†he states.
Lyomoki said the Minimum Wages and Council Board Act of 1964 mandates the Head of State to approve a minimum wage. He said Act provides for a minimum wage of sh60 per month, which is ridiculous.
The International Labour Organisation notes that a minimum wage in Africa is a blunt instrument that may not confront economic insecurity.
Now the big question: Who is against the workers of this land?