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Ali Parkar
<I>President of Star Knitwear Group</I>
<B>Government is about to perform a complete overhaul of the country’s labour laws. What do you make out of the reform proposals?</B>
I don’t have the details of what government is about to do. But we desperately need reforms and I welcome any initiative to render the present legislation more flexible and business-friendly.
<B>What is the major weakness of the Labour Act as it is right now? </B>
It is not at all conducive to labour efficiency. It makes it virtually impossible to sack a worker on the basis of his poor performance after three years of his being hired. The worker knows this and, typically, he will give his very best during the first years and will become all relaxed, once his job is secure. This is the reason why I’d particularly welcome an enhancement of the employer’s ability to hire and fire.
<B>Would there be no more labour shortage in the textile industry if the employers could hire and fire more easily?</B>
Flexibility will not create more workers. All that it will do is put more pressure on lazy workers. They will have to perform to retain their jobs.
<B>Should we therefore expect massive lay-off of workers considered as unproductive?</B>
Though understandable, this fear is totally unfounded. It is not easy to sack people, you know. It’s hard to find legally good reasons to justify a dismissal.
<B>Work would nonetheless become more precarious?</B>
Only for those who are not very productive. Those who are efficient will actually benefit from a more fluid labour market as it forces employers to be creative in order to retain them. You do not need to be overprotective of workers when the country is in a state of full employment as is the case in Mauritius right now.
<B>Will you be introducing new incentives to retain your workers?</B>
No. Our workers are already adequately compensated. We operate in a highly competitive market segment and we do not have much leeway, unfortunately. We have a thousand workers on our payroll. One, out of every three, is not Mauritian.
<B>The MEF has much to say against the annual tripartite meeting designed to determine the rate of salary compensation with regard to inflation. Do you toe the same line? </B>
For the 21 years I have been in Mauritius, I have been very impressed with the stability in the labour market. I believe the stability is very much due to this tripartite annual meet. I am quite comfortable with the system as it is right now. I believe changing it can be dangerous. We would be swimming in unknown waters.
Government is proposing a new system where the employer’s capacity to pay will be given greater weight. Aren’t you happy at the prospect?</B>
I believe that no industry should be allowed to stay open in the first place if it can’t pay for the erosion in its employees’ purchasing power.
<B>The unions are urging for a minimum living wage. How do you react to such a claim? </B>
Unions don’t have much power these days, as is the case in most full employment situations. It’s a good thing! I must say I don’t like them much. They have no connection with reality. My employees talk directly to me.
<B>Do you, however, agree to the principle of a national minimum living wage?</B>
Not at all. There is no need for it as the country is in a state of full employment. Those who are unemployed are really only looking for better wages. Let the market play its role. The normal flexibility within industry will see to it that there is a minimum wage.
<B>Would you support a form of unemployment benefit?</B>
We need to be careful about that. We can’t afford to have people rely exclusively on such benefits and refuse to work, as it has been observed in certain developed countries. If there has to be some form of unemployment benefit, it has to be time-bound. The beneficiary has to be given a period of time during which he has to find a job.
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