<B> What motivates your demand for a Rs 674 salary compensation at the tripartite talks? </B>

The Mauritius Trade Union Confederation and the National Trade Union Council submitted a joint document namely Proposals for economic and social justice.

A study, the Mauritian Social Attitude Survey, by the University of Mauritius in 2002, revealed that 94% of interviewees were finding it harder to cope with the cost of living than two years before. The Continous Multipurpose Household Survey 2001 shows that 60 to 70% of the population is indebted. The Central Statistics Office (CSO) does not include non-consumables such as insurance premiums and interests in the computation of the Consumer Price Index (CPI). Furthermore, Value Added Tax (VAT) imposes a huge burden on workers. Apart from a few exemptions, VAT covers all consumption items. VAT alone represents an extra Rs 350 per month as computed by the CSO on a minimal household expenditure basis. The four last compensation awards did not make up for the loss in purchasing power of consumers.

<B> Why are the unions against the idea of linking compensation to productivity? </B>

The idea should be resisted for a number of reasons. Our labour force is our only resource. If we don?t nurture it, it wil have a negative impact on production. We cannot rely on machines only. A worker should be able to make both ends meet with his salary. If he has to do an extra job, then his productivity will definitely be affected.

Employers must pay a price to ensure stability. Salary compensation is not a pay increase but a way of restoring purchasing power. An erosion of purchasing power can endanger social stability and the pillars of the economy .

<B> Employers argue that the economy cannot afford a pay rise due to difficulties in industries?</B>

They are just being unfair. The sugar industry has seen a drastic reduction in its labour force with the Voluntary Retirement Scheme and centralisation of milling activities. Many EPZ firms keep making huge profits. Some hotels charge Rs 80,000 a suite per night and still pay their employees Rs 5,000 per month. Many companies fund political parties. Where does the money come from? Politicians, who do not contribute, get their share, while workers are refused compensation.