Pravind Jugnauth seems to have impressed most trade unionists in the last round of tripartite negotiations. ?We really had the impression that, this time, the tripartite negotiations have not only been a formality where the government contents itself with imposing its own compensation scale,? declared Toolsiraj Benydin, the National Trade Union Congress (NTUC) president. And more improvements are due to come up in the near future. Employers and unions have decided to meet every three months to discuss wage compensations according to the rise in the cost of living. This might help official negotiations to reach a consensus more easily.

The minister of Finance has achieved consensus in spite of the conflicting agendas of unionists and employers. The lowest wages will benefit from an increase of 4.5%, which is actually higher than the inflation rate of 3.9%. The compensation will thus range from Rs 115 for those earning less than Rs 4,000 and Rs 220 for those earning more than Rs 8,000. The minister of Finance made it clear that it was one of the government?s priorities to favour low wage earners since it is conscious of their difficulties. The wage compensation has not met the unions? initial demand, which was of Rs 600, but they acknowledge that the government has made a move in the right direction.

According to the minister, the negotiations took place in a serene atmosphere. ?All the stakeholders behaved in a responsible manner in the interest of the whole country.? Pravind Jugnauth seems thus to have attained his objective. The wage compensation has been negotiated for the good of thecountry ? he insisted on this aspect during the first round of negotiations. The minister has managed to prove to the stakeholders that he has taken their aspirations into consideration although the compensation will cost Rs 625 million to the State.

<B>An ?effort ? from employers</B>

The Mauritius Employers? Federation (MEF) has however expressed reservations on the quantum of the compensation as it will have to find Rs 955 million to finance the rise. ?Yet we are less worried about the amount of the increase than about the fact that the compensation granted is higher than the inflation rate,? MEF president Gérard Garrioch explained. ?This could have a negative impact on employment, particularly in the EPZ sector. There are thousands of jobs at risk.?

The trade unions are convinced that the employers are not sincere. Profits are increasing in many sectors like tourism and textiles, according to Radha-krishna Sadien, the Mauritius Trade Union Congress president.

The minister of Finance has asked for more understanding from employers. They have to ?make an effort? to pay the wage compensation, which has been agreed upon during the negotiations. Pravind Jugnauth admits that the economic situation is difficult but he thinks low wage earners really need the compensation. He maintains that the government has decided to make an effort and it expects the private sector to do the same.

Despite this difference of opinion, the tripartite negotiations seem to have re-invigorated Pravind Jugnauth. The fact that he has listened to all proposals and accepted to discuss the issues is appreciated by the various stakeholders. The compensation rate will not even have to be discussed at cabinet level since the consensus has already been reached during the negotiations.