Azad JEETUN Director of the Mauritius Employers? Federation (MEF)

>The government is said to be discussing the implementation of a minimum wage with the MEF at the moment. What is the objective behind its possible adoption?

We have had consultations with the Government regarding labour law reforms in the country, just like other social partners. We have made our views on this important subject known in a document entitled ?Our Vision for Mauritius? so that business can thrive and our citizens can enjoy a high standard of living. We believe that the reforms should provide for the establishment of appropriate structures and institutions with specific functions. The MEF has made a number of proposals for a business-friendly labour legislation. The legislation should pave the way for collective bargaining that should become the cornerstone of our industrial relations policy. For collective bargaining to take place and flourish, we believe there should be a national minimum wage instead of the proliferation of wage rates in different sectors. It is in this broad context that the notion of minimum wage should be understood. It should be a reference wage to facilitate collective bargaining in enterprises. It is a threshold below which no worker should be hired.

> What will be the effective changes?

The introduction of a national minimum wage implies a less interventionist role of the State in industrial relations and collective bargaining implies more interaction and consultations in labour-management relations at the enterprise level. The mininum wage is just one element in the bargaining process since employers and employee representatives will discuss a number of issues regarding remuneration and conditions of work to reach a collective agreement, which should be more favourable to employees and which will take into account inter alia productivity and performance of employees and the enterprise. In this system, there will be no losers. On the contrary, there will be higher mobility of labour, more investment in training and greater employment opportunities. The minimum wage is just a starting point for negotiations and these negotiations are not limited only to wages but to other components like leave, pensions, uniforms, rewards etc. The national minimum wage will serve as a reference for the overall remuneration package, which will include a fixed component and variable components as well. We should also add that the national minimum wage does not imply that workers will be actually paid that minimum. Wages will be determined by labour market forces and they will be generally higher.

> Why is the MEF in favour of the implementation of the minimum wage?

This should serve as a basis for collective bargaining and, more importantly, the country cannot afford a multiplicity of institutions prescribing wages and conditions of employment. It is high time for employers and trade unions or employee representatives to sit around a table and discuss matters that affect them at enterprise level.

> How will it be calculated?

In the new system, it has been proposed that a National Wage Council be set up that will have a number of functions, one of which is the setting up of a minimum wage. It is up to the new institution to come up with the parameters for such a reference minimum wage. It is also necessary for the NWC to facilitate collective bargaining, issue guidelines, assist enterprises for successful completion of collective agreements and conduct studies on appropriate remuneration policies.

> What has been the reaction of trade unions?

We have had the opportunity of discussing with certain unions some aspects of the reforms and our own vision for smooth and harmonious industrial relations in the country. We are open to further discussions and we believe that, if we work together, Mauritius will be able to achieve a high value-added, high employment and high earnings economy. We should also add that there should be a new mindset on the part of all social partners so that there will be greater trust, understanding of diverse views and sharing of information in a spirit of transparency. With the spread of collective bargaining, the process of consultation with unions, employee representatives and employees will be further strengthened.