Morocco works to shield industries from financial crisis fallout

03/02/2009

Morocco plans to provide financial assistance to industrial sectors hit hard by the global economic crisis.

By Sarah Touahri for Magharebia in Rabat -- 03/02/09

[Getty Images] The global economic crisis threatens Morocco's textile industry.

The Moroccan government announced its intention to help the industries hit by the global economic crisis. During a cabinet meeting held in Rabat on Thursday (January 29th), Economy and Finance Minister Salah Eddine Mezouar said that the crisis has been worse than expected and that the government will devise a strategy to assist the worst affected sectors, particularly the clothing and auto industries.

The textile industry was hit by a fall of 6% in sales of ready-to-wear clothing at the end of December, representing a loss of 1.2 billion dirhams. Subcontracting in the auto industry fell by more than 30%.

The government plans to take action in order to prevent mass redundancies.

Minister of Employment and Professional Training Jamal Rhmani said that industry figures and trade unions have expressed fear and asked the government for help. He added that several ministries have entered into dialogue with the relevant parties to better develop an emergency plan.

Rhmani explained that the government would ensure financial and professional assistance, a reduction of social security contributions, and a guaranteed minimum income for workers until growth picks up.

Communication Minister and government spokesman Khalid Naciri stated to the press that the measures are aimed at protecting workers by providing financing through a guarantee fund. "We also plan to prospect new international markets", he added.

Abdelali Benamor, president of the Competition Council, noted that aid given to businesses must not be seen as a revenue stream alone and that the government must set out clear goals for its use, particularly with regard to jobs.

Trade unionists are eager for the state to intervene. Hamid Chabat, a member of the Moroccan General Workers’ Union (UGTM), said that priority must be given to the sectors affected by the crisis to prevent lay-offs.

"I think trade unions should not demand wage increases at the moment because some sectors employing thousands of people are in crisis," he commented.

Moroccan Textile and Clothing Industry Association President Mohamed Tamer noted that implementing public-private partnerships and ensuring cooperation between the public and private sectors is a must.

Workers in both the textile and auto industries have expressed concerns. While those who have had their jobs for longer periods have generally kept them, many new starters have ended up jobless overnight.

One of them is Samira L. Having found work with a textiles firm in Temara, in February she will be looking for another job. "The company isn’t getting any orders. We’ve been asked to stay at home until the market picks up again. I know it’ll be difficult to find another job now", she told Magharebia.

Her case is just one of many. Mourad K. found work for the first time in six months with an auto manufacturer, but is now unemployed and hopeful that the crisis will end soon: "They’re only keeping on the old-timers at the moment," he told us.

A monitoring group consisting of representatives of the government and the private sector will start work on Wednesday (February 4th).