In the present climate, ensuring human rights in the working areas is one of the tools to penetrate global markets. Creating conducive environment for employees brings a number of benefits to the overall productivity of a company. Being a Fairtrade- certified company is a way that allows companies to be a part of global markets as it pushes employers to meet human rights principles. In horticulture sector in Ethiopia, out of hundred plus flower farms, only seven of them are certified and pass through all the human rights conventions.
From those human right principles, the issue of setting a minimum wage for employees has been evolving around. In order to get the best out of employees, companies must work on creating better and conducive environment for their employees. It is simple that employees must not get tired of fighting with the jobs that cannot fit with their life expenses. Such situations have a plausible effect on their work and productivity rate. Unable to set a minimum wage in the country greatly affects employees to earn less than they work.
Fixing minimum wage in Ethiopia is highly entertained by the workers’ associations. The current incumbent and other stakeholders are working closely to answer the long- awaited question of setting minimum wage of employees. ‘Fairtrade Africa’ is playing the key role in fixing the minimum wage. It is implementing multiple projects in the horticulture sector in Ethiopia.
Documents show that Fairtrade Africa (FTA) is the umbrella network organization representing Fairtrade-certified producers and workers in Africa and the Middle East. It has four regional networks – Eastern & Central Africa; Southern Africa; West Africa; and the Middle East & North Africa. Established in 2005, FTA is a member of Fairtrade International and currently represents over one million farmers and workers in over 500 producer organizations spread across 33 countries in Africa, including Ethiopia, by providing services aiming at improving workers livelihoods.
Recently, Fairtrade Africa has organized a consultative advocacy event on minimum wage fixation here in Addis Ababa. During the event, responsible stakeholders including representative from the Ministry of Skills and Labor were participated.
Delivering the opening keynote speech at the event, Labor Inspection and Industrial Relations CEO at the Ministry of skills and Labor, Tekalegn Ayalew (PhD) said, “The workshop is very timely for it brought key actors of the issue of minimum wage together. The issue of minimum wage is very sensitive in the country.” The Ministry of Skills and Labor is striving to create decent work environment in all sectors including horticulture, service and other sectors.
In the last two years, as to Tekalegn, the ministry has been working on strategic reform areas including creating decent work areas.
“We have been reviewing all the legal frameworks and directives related to the issue. We have very complicated legal system as the nation signed international conventions including ILO. We are also inspecting occupational sect, health, and minimum wage directives. We are building the capacity of regions as we have more than 50 thousand industries with very limited labor inspectors.”
Tekalegn further stated that one of the important areas to create safe environment is enforcing the law through improving the labor inspection system. Regarding occupational sect and health services, there are limited professionals in the country, so a new curriculum was designed and trained labor inspectors, occupational and health professionals to deploy them to the regions and privatize and outsource labor inspection services.
The other focal point of the ministry is creating industrial peace through collective and inclusive social dialogue. The culture of collective bargaining and negotiating is weak. It is essential to change the competition to collaboration via finding solutions for workers, companies and the government through social dialogue. “Once industrial peace is secured, it is all about productivity,” Tekalegn noted.
As a nation, Tekalegn elucidated, “Our key pillar and priority is productivity. Through productivity, we all can benefit. Our country is naturally rich and big, but our productivity is so weak. Most of our labors are engaged in less productive sectors. Even the productivity of the manufacturing sector is very low.”
Existing challenges are understandable, and setting a minimum wage is not an easy task. It has its own limitations, strength, and weakness. “Currently, the ministry is undertaking a national assessment to create a better minimal wage system.” Once the minimal wage is set, the demand continues for a better work and living wage. To this regard, making an evidence- based policy and directives is underway, Tekalegn elaborated.
By the same token, Flowers Manager at Fairtrade Africa, Gonzaga Mungai, on his part, “Fairtrade Africa is a global system under Fairtrade International which is responsible for setting standards. The organization has bigger markets in Europe especially in Germany.”
Based on his presentation, minimum wage and having a life worth living is declared in Universal Declaration of Human Rights (1948) saying: “Everyone who works has the right to just and favorable remuneration ensuring for him (herself) and his/her family an existence worthy of human dignity. Workers should be self- defendant and not relied on charity.’’
Comparing the context in East Africa, for instance, in Kenya, the floriculture is the one with the lowest paying sector comparing with other sectors. Most recently, as to Gonzaga, new laws become emerging that focuses on securing human rights. The debate on setting minimum wage is important to establishing a foundation for progressive improvement on wages.
Latest living wage Benchmarks (2021) and World Bank Poverty Lines, as to Gonzaga, for workers who are working in banana and fresh fruit sector, the standard minimum wage in Kenya is 270 USD, in Ethiopia, it is 7993 Birr or 181 USD, and in Uganda, it is 203 USD.
“East Africa is the ideal place for the horticulture production with very vibrant labor force that can be able to support this sector including skilled- labor force. In Ethiopia, the government has put mission to attract foreign investors. There is also infrastructure put in place particularly the Ethiopian Airlines that has a very good connectivity of cargo planes with Europe,” Gonzaga elaborated.
“Fairtrade Africa is a voluntary certification scheme and producers are free to apply to join and become certified because of market reasons as some markets in Europe demand Fairtrade certification. Producers who are Fairtrade- certified are required to pay workers standard wages. It also ensures they are not paying below the World Bank extreme poverty line,” Gonzaga mentioned.
In the same way, Senior Project Officer at Fair-trade Africa, Wenedemeneh Engida said that the main objective of the event as Fairtrade Africa is to create the platform for different stakeholders to come together and discuss about minimum wage.
Wenedemeneh further explained, Ethiopia does not have minimum wage in the private sector. This is the right time to create the opportunity and platform for producer organizations, sector actors, and the government to come together and discuss on the progress made so far. It is a very sensitive issue, but it has to be discussed. Due to the current global scenarios like the inflation is at its highest, workers cannot afford to live or buy grocery. Thus, it is the right time for the government to think about setting minimum wage.
Delivering a presentation on the projects in progress, Wenedemeneh added, the company is working on a project called Dignified Opportunities Nurtured through Trade and Sustainability (DONUTS). The program is designed for four consecutive years (2022-25) which is a human rights-based development program that comprises 12 projects in Africa financed by Ministry of Foreign Affairs of Finland and Aldi U.K.
As to Wendemeneh, the objective of the “DONUTS-Ethiopian Flowers Project” is to contribute to the wider “Realization of agricultural workers’ rights to decent work through achieving more favorable Collective Bargaining Agreements (CBAs) and working conditions”. The project is targeting 7 Fair-trade certified Flowers and plants’ farms in Ethiopia.
Similarly, National Federation of Farm, Plantation, Fishery and Agro-Industry Trade Unions (NFFPFATU) President, Gebeyehu Adugna to his part, the association is working with Fairtrade Africa and Fairtrade International. They are working aggressively on putting pressure on the government to implement the minimum wage in the country. They have submitted their questions to the Prime Minister.
Not having minimum wage, the President noted, has cost workers their arms and legs. It has a huge impact on their lives. Many workers couldn’t even eat their lunch due to their low income. Both the federation and confederation have been asking the government to support workers. Besides, the bodies have asked the government to revise the taxing system.
Gebeyehu further added that parallel with waiting for the government’s response, the association has formed a cluster salary payment system. The clusters are formed based on their places such as Zeway, Koka, Bishoftu, and Sendafa clusters. These clusters determine workers’ wages based on companies’ source of income and capacity.
To determine the wages, representatives from workers’ association, the companies, national federation have sit together and decide. In the horticulture sector, at this time, the minimum wage is 3000 Birr. Again, they have decided that any Fair-trade member company should pay its workers not less than 3800 Birr. The wage increases based on experiences.
Based on the Fairtrade standards, Ethiopians’ are still behind the bar. They are working to meet the standards in the years to come. In order to be more productive, such efforts should be entertained and work together to realize it. Workers should feel that their company is their own and protect it.
BY DANIEL ALEMAYEHU
THE ETHIOPIAN HERALD SUNDAY EDITION 1 OCTOBER 2023
