Currently in Geneva for the International Labour conference, Hon. Minister of Gender labour and social development Hon. Betty Amongi Akena has explained the rationale why Uganda still doesn't have a minimum wage under its legal framework.
Hon. Amongi noted that majority of the jobs in Uganda is predominantly being provided by SMEs, and most of these SMEs are operating within the informal setting; therefore, setting a minimum wage must consider the impact it will have on the profitability and sustainability of their businesses. Will it lead to laying off more workers because businesses cannot afford the salary therefore, causing more unemployment? As a country, we are examining how to balance business survival and job creation within the context of the debate about minimum wage, Amongi asserted.
My Country does not oppose minimum wage, we are currently examining the structure of our economy, to determine the formula that can fit the different categories of sector jobs, so that minimum wage is contextualise within the circumstances of each sector; for example, government jobs, jobs within manufacturing sector, Banking and financial sector, oil and gas, and other big companies/sectors has the capacity to pay decent wages; however, small businesses that constitute the bulk of our job creation sectors like restaurants, transport sector, market vendors, tourism companies, produce dealings, private schools, private pharmacies or small clinics might not be able to pay minimum wage; therefore, my appeal is that we need to handle the matter within country specific solution and sector context, Amongi opined.
Amongi told the conference that Uganda is establishing a tripartite board composed of government, workers and employers to negotiate and make recommendations based on each sector of the economy having it's minimum wage according to their classification. She asserted that her ministry is currently developing terms of reference for the tripartite board, and sector based technical committees, so that they can set the Agenda for the negotiations of a decent minimum wage per sector.
She reaffirmed Uganda’s commitment to ensure that workers earn what can get them out of poverty, through striking a balance between protecting businesses by proposing wages that they can sustain paying, while also ensuring decent jobs for workers.
She was speaking at the conference on Thursday morning in Geneva.
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