Employers to meet over minimum wage

DAYS after trade unions called on the government to increase the minimum wage, the Private Sector Federation (PSF) says it will soon convene a meeting with its members to discuss the matter.Speaking to The New Times yesterday, the Director of Trade, Communication and Labour Relations in the Federation, Antoine Manzi, said the meeting, that could take place sometime next week, would help come up with a common position He, however, said that PSF finds labour market forces best suited to determine how much workers are paid as opposed to regulating the rates.“Labour supply and its demand should first be looked into more critically before setting any amount,” Manzi said. The development comes at the backdrop of trade unions’ demand that the government fixes the daily minimum wage at Rwf1,500, way above the current Rwf100 stipulated in a 1973 law, which is still in force. Officials from the main national federations of workers unions, the Central Trade Union of Workers of Rwanda (CESTRAR) and the Labour Congress and the Brotherhood-Rwanda (COTRAF) want the daily minimum wages set at Rwf 1,500 in villages, and Rwf 2,000 in Kigali. They also want a minimum monthly salary of Rwf160,000.“The minimum wage has to keep on changing as the economy grows. But, currently, we still have a problem of high demand for labour. Its better we wait until the economy reaches its maturity,” Manzi underscored.However, Robert Mathu, the Chief Executive Officer of the Capital Market Authority (CMA), said the setting of the minimum wage should address the interests of both the employer and the employee.According to Mathu, when the minimum wage is set highly, it affects the cost of doing business in the country. “Wages have a profound impact on the cost of doing business. I would rather encourage the negotiations between the employer and the employee,” said Mathu.“There has to be a study on its impact (minimum wage) on the East African Community (EAC), that is, if the country is targeting the regional market.”However, the president of the Workers Party (PSR), MP Jean Baptiste Rucubigango, said the proposal from trade unions was “realistic and fair” considering the cost of living.“We urgently need a new minimum wage because employees’ pensions are still affected by the Rwf100 threshold. A new rate will improve employees’ welfare” Rucubigango said.He called for a thorough study on a new minimum wage structure that takes into consideration critical economic issues. “The minimum wage has to reflect the value of country’s currency”.Several construction workers in Kigali who spoke to The New Times welcomed the proposed minimum wage of Rwf 1,500 per day, saying it could help improve socio-economic situation.“Due to high job demand, one is forced to go for under-paying jobs,” lamented Syldio Bizimungu, a porter at a construction site in Kacyiru, Gasabo District.Bizimungu, who currently earns Rwf1,000 a day rents a house of Rwf20,000 a month. He says the money he makes at the end of the month is “peanuts” since he also has to feed his family and educate his three children.Another construction worker at the same site, Festus Byiringiro, a bricklayer, said they should be respected for their services and remunerated accordingly.“We should be treated like any other skilled personnel. I deserve to be paid at least Rwf 10,000 per day just like a mason,” Byiringiro, who earns Rwf4,000 a day, said.The Ministry of Public Service and Labour says a draft minimum wage structure reflecting the views of local companies will be available by the end of the year.

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Employers to meet over minimum wage