The Ethiopian Employers’ Confederation is established by five Employers’ Associations in the previous year. It is working with the Ethiopian Labour Confederation and the government to insure a better working condition, discharge social responsibilities and play significant role in spurring Ethiopia’s economic development.
Feteh Woldesembet, Vice president of the Confederation, is our executive guest on today’s edition. He will tell us how the Confederation is progressing towards achieving the objectives it has set.
Herald: What is the general issue that the Confederation is all about at present?
Feteh: One of the programs of the Ethiopian Employers’ Confederation is to coordinate a consultative forum that brings member associations and companies that are not yet part of the membership to discuss how we can strengthen the cooperation between employers. The confederation has been found only by five associations, but there are many companies on different sectors who have a significant role on the economy and job creation. So when we coordinate the forums, we consider the ways how the voices of the local investors or employers could be heard. We also discuss their contributions on the Nation’s economy. We would set agendas; it could be about tax, labour cases, investment and financial related issues that we would provide recommendations for the responsible government organ and make significant contribution for decision makers. On the other hand there are information communication gaps between investors. The consultative forums would enable them to exchange information and experiences.
Herald: Let us discuss the progress that the Confederation has made so far.
Feteh: For many years the local investors or employers in Ethiopia have been going on their separate ways being organized in a federation level. The Ethiopian Employers’ federation has existed almost for some forty years. But in the middle several other federations such as the Hotels, water, micro enterprises and other federations from states, started to emerge beginning from 2015. That caused a structural problem because the older Employers Federation would not represent the other federations that came up lately. Therefore, in order to effect a solution, bringing them under one umbrella that would serve their common interest was mandatory. It was crucial to enhance the relationship between different governmental consultative and decision-making organs and the federations. Thus, the possible option on the table was establishing the Confederation. As a result, five federations came together and established the Ethiopian Employers’ Confederation, which is the possible level of institution that the proclamation allows to establish. However, other federations with different interests have created their own contribution and we are still discussing on how they could merge into one strong confederation for it is the best way to achieve our common interests and for better contribution to the Country’s economy. We have made three rounds of negotiations so far.
Herald: What are the results of those three round negotiations?
Feteh: The results are so far promising and we have reached some agreements. We will undertake the fourth round negotiation in the near future. And if we succeed, I believe that we would merge and create one strong confederation.
Herald: Would you tell us what the employers and employees relationship look like in past and present?
Feteh: Our Confederation represents the employers.The employees have their own Confederation. The existence of both confederations is significant to discuss issues and work together on different issues of concern with common understanding. Meanwhile, some labour associations would be established to ensure their rights. But in order to insure rights, it may not be necessary to establish associations.
Herald: Why is that?
Feteh: That is because there is already a constitutional law in line with international conventions that can secure rights of both employees and employers. What we need to establish associations for is to think beyond the law. If I am employed to produce one mobile phone per day and I am able to produce three, I could need an association that makes sure I get the payment or bonus worth my extra commitment. In this case, there are resistances from the employers’ side when employees try to establish labour associations. However, the intention behind establishing labour associations is to increase productivity and production and raise the benefits of employees. Thus, we have made agreements with the Labour Confederation to work together in terms of creating awareness and discharging our responsibilities equally. When the intention is all about productivity, both employees and employers as well as the country will be beneficiaries. In order to increase productivity, all parties; the employees, employers and government need to work jointly. The employers have to sell their products or services and pay tax, so the nation could build infrastructures for the public. This could not be realized unless the employees are encouraged to be more productive and gain the right benefits from their jobs.
Once there was a case that both the
employers and labour confederations had played a crucial consultative role in
one big foreign company. The employees had to strike over an issue of labour
associations. There were two labour associations and the employees had their
own differences on deciding which one would be the right representative and
they made a strike. Therefore, we had to bring them together and discuss the
issue for half a day which ended up with an agreement to have a single
association and they went back
to work. Such things happen because of the shallowness of awareness among the employees. This way they could create bad image on the investment sector. That is why we are exerting efforts to work closely with the labour confederation as well as the government.
Herald: How do you asses the local companies’ effort in terms of discharging their social responsibilities?
Feteh: It has only been one year since our confederation was established. Thus, social responsibility is one of our major focus. We advise employers that discharging social responsibility is not a cost. That is because we understand that discharging social responsibility will pay off in another way. It was a recent fact that when there were unrest and protests in some parts of the country, those companies who have been discharging their social responsibilities and working closely with the public have been well protected. Therefore, it is true that discharging its social responsibility is always beneficiary for the company or the employer. In this case, we also have to consider the capacity of the company. It is difficult to pass a strict law on social responsibility. Rather it is better to deepen awareness for the employers about the significance of it. If I can get ten Birr and give away one for the needy, that is what counts. Therefore, we are working on creating this awareness and we are not in a position yet to assess as to what the current status looks like.
Herald: Would you tell us about how local employers or companies are dealing with issues that are related with occupational safety and health?
Feteh: We are currently trying to promote the motto, ‘Better Work’, which is an idea from the International Labour Organization (ILO). Our inspection system is not effective for the inspectors we have. They do not have much technical knowledge on several sectors. For instance one inspector may give orders about but not know how hazardous a certain chemical would be. On the other hand the Ministry of Labour and Social Affairs (MoLSA) does not have sufficient number of inspectors as compared to the growing numbers of industries and other companies. Therefore, the main purpose of this Better Work idea,which the ILO is sponsoring, is to capacitate companies for self-checkup. There is an online system and a certain company is obliged to do the self- checkup to earn an international level certificate. That means there will be a self-inspector in every company. The inspectors from the MoLSA would check the status of the company from the self-checkup information online and would physically go and inspect what it has fulfilled and not. If it has not fulfilled the criteria, the inspector will revoke the certificate.
When the company sends its products to the market, the purchaser would ask if it is certified, how it is produced, about the wage of the employees etc. Thus, the self-inspection system is a better way and we are working as stakeholders on promoting Better Work.
Herald: Machineries of most local companies or industries are said to be old technologies. Doesn’t that make the Better Work effort difficult to achieve?
Feteh: The government through the Ethiopian Development Bank is making its level best effort to support the local companies or industries in financial loans to build their capacity with latest machineries or technologies. But this depends on our economic growth. It could be hard to support all the local industries with finance.If you shut them down there would be a massive unemployment crisis. Therefore, the best that could be done is to minimize hazard with all the possible options available. But it is obvious that there is a need to exert a maximum effort to realize the Better Work idea.
Herald: What do you think about the promising prospects pertaining to creating better working environment between the employers and employees?
Feteh: On early trends, every concern used to be in favor of the labour force or employees. Protecting the working force does not have a negative effect because most of our population is poor. Meanwhile, we are on the verge of industrialization. And most foreign direct companies have this misunderstanding about the country having a cheap labour force. As they start to invest in the country with that misunderstood concept of a cheap labour, challenges start to emerge. Therefore, the government has to come up with a minimum wedge roadmap and it is on a progress. That means, there will be a chance that both employers and employees would negotiate in terms of payment and other issues. Therefore, I would say there is an improvement from the past trends.
Herald: What are the main challenges that the local investors are facing and the supports they would need from the government?
Feteh: currently many industries are emerging with big capitals. However, foreign currency shortage is affecting their productivity because raw materials are imported from overseas. So, due attention must be given to finance the industries for sufficient raw material import. Otherwise, all the investment and cost of building the industries would be for nothing. On the other hand, peace is the main value for investment. So, we have to work on maintaining our good social integration and peaceful coexistence. In this case, not only the employers or employees’ confederations but every citizen from all walks of life needs to support the government’s efforts for the nation’s sustainable development.
Herald: Thank you very much!
Feteh: Thank
you for having me!
The Ethiopian Herald Sunday edition January 19/2020
BY HENOK TIBEBU
