Algeria to consider raising minimum wage
2009-04-29
Algerian minimum-wage workers are clamouring for their first pay increase in 3 years. As officials, labour leaders and workers prepare for talks, critics say that without a concurrent boost in worker productivity, higher wages could threaten the economy.
By Lyes Aflou for Magharebia in Algiers – 29/04/09
 [Lyes Aflou] Algerian Labour Minister Tayeb Louh (right) and UGTA head Abdelmadjid Sidi-Said discuss the minimum wage. |
On February 24th, Algerian President Abdelaziz Bouteflika promised to discuss an increase in the minimum wage. Ever since his re-election on April 9th, the debate has gained momentum.
Proponents of a wage hike want the minimum wage to rise to 15,000 dinars per month from its current level of 12,000 dinars.
The next three-party meeting to be held between the government, employers' organisations, and the General Union of Algerian Workers (UGTA) will focus on practical methods of implementing the rise. Nevertheless, a date for the meeting has not been set, said UGTA chief Abdelmadjid Sidi-Said.
Minister of Labour, Employment and Social Security Tayeb Louh confirmed that there are plans to raise the minimum wage.
"The adjustment of the minimum wage will be discussed by the three-party group with the parties concerned. The workers' allowance scheme and its direct impact on the pay adjustments for all public-sector workers will also be discussed. This will occur once special laws have been adopted and finalised," he said.
Algerian produce markets have witnessed prolonged price increases that have dented household budgets.
The cost of potatoes more than doubled from 15 to 35 dinars per kilo. During the election campaign, the price skyrocketed to 120 dinars. A similar situation occurred with tomatoes: the price went up 40 dinars per kilo.
The minimum wage was last changed in 2006, when it increased 2,000 dinars per month to 12,000 dinars.
"The rise in the minimum wage will not solve the problem of the low purchasing power of Algerians in a context where the market has been completely distorted and has been taken over by speculators, now that everything is imported," Liesse Dj, an economist, told Magharebia.
"We should expect to see an inflationary effect, since prices will inevitably rise together with salaries."
A March 2009 IMF report stated, "Despite the low cost in absolute terms of labour in Algeria, companies have no advantages in terms of costs, due to the low productivity of the workforce… Gross salaries in Algeria are equivalent to approximately 40% of gross salaries in countries such as Hungary, Poland, the Czech Republic, and Slovenia, and are slightly higher than those in China."
Some Algerian business leaders argue that wage increases can only come about if productivity increases.
Raising the minimum wage could pose a "threat" to small and medium companies, said Mohamed Said Nait Abdelaziz, President of the National Algerian Employers' Confederation (CNPA). Although he essentially agrees with workers that salaries should be increased, he also believes that there should be "incentives that will ensure that companies grow".
The President of the Algerian Employers' Confederation (CAP), Boualem M'Rakech, agrees. "The rise in the minimum wage must be accompanied by a number of measures that will enable companies to grow and stimulate production in a healthy manner."
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قليل ص Posted 2009-04-30
The victory of His Excellency the president of the republic Abdelaziz Bouteflika in the presidential elections 09 bears many things for the category of young people who supported and assisted him in order to find a solution to the plight facing young people in our country. It is providing jobs to secure them an income allowing them lo live respectably on the land of their country. It was him who addressed the claims of young people and imposed them on officials who are responsible for the management of a country like Algeria. This country which is abundant in powers and competencies but at the same time it lacks experience in good management within the contest of globalisation which is full of changes and contradictions imposed by major states. But it was not spared from its chains in recent times. However, the expertise of the president made him understand the sufferings of the fragile class of society as a result of the drop in the purchasing power and the widespread unemployment among young people. They will thus be able to contribute to building the nation in order to have a dignified life on the land of their nations. The treasuries of the country are useless if its sons live in poverty, need and begging in the countries of others. We sincerely hope that the three party meeting will come up with decisions up to the level of the aspirations of poor citizens who were burnt by the fire of prices for some time. May God assist our officials for the good.
حميد هواري- تلمسان Posted 2009-05-03
The minimum wage in Morocco is 1700 dirhams, the equivalent of 17000 dinars.
راشد Posted 2009-05-06
Raise our salaries.
Abdelkader Posted 2009-05-06
Salam- It seems to me that even with all of its wealth and its $138 billion in foreign exchange reserves, these criminal, mafia generals, who are just lowly officers in the French army and who murdered, oppressed and impoverished our people, indeed know how to waste it all by buying frigates at $2 billion a pop. May God destroy them, God willing!
زعيط Posted 2009-05-10
Algeria is the richest country and its people are the poorest. If someone has a function, he let his hands go. On the Day of Judgment, you won't win, thieves.
مجهول البلد Posted 2009-05-10
Salam alikum Mr Minister. Stop lying. By God you will pay very dearly when you go to God. You mock us. I have been looking for a job for six years in the country of misery, a country where a brother snaps the flesh of his brother. God is our mandate against you from your disobedient head to the lowest in rank amongst you. How odd! I have been looking for a job for six years. Finally I found it. But I am quasi unemployed. You are mocking us, Taib Louh- 6130 Algerian dinars a month. What would you do with it? Tell me, may God rest the souls of your parents. I am driving my mother mad. By God, I won’t forgive you Taib Louh and Ould Abbas. Only God knows how much money you spend on obscenities.
نوال Posted 2009-05-13
Eh guys, stop insulting, humiliating yourselves and make enemies laugh at us. The problem is not with senior officials. The problem is with Walis and presidents of municipalities who offer jobs to their relatives and acquaintances in hiding. God will punish them. God suffices me and He is the best mandate. They say responsibility is a mission not a honour. By God responsibility incurs sins and throws its perpetrators in the fire of hell. So fear God officials in your subjects. Everyone is a shepherd and you are all responsible. Oh God be witness that I have transmitted the message.
cpafini Posted 2009-05-22
Stop being anarchists! We are also at fault. Are we united? Are we aware? Are we attentive to what goes on in our high schools and our universities? This is what we wanted. All of this is the doing of an alcoholic minister who is destroying our education system, as was feared, and a minister who does business in France with Sonatrach money, as was also feared. And so on and so on and so on. May they be damned in this life and in thereafter!
الشبح الاسود Posted 2009-05-28
Many sons of Algeria work only within the social network. Where is the increase in it before they starve? This is why they preferred to die drowned in the sea better than staying in this rich country which doesn't offer them anything. It is a shame that they find a living in a foreign country without finding it in their country.
محمد بخوش خنشلة بوجلبانة Posted 2009-06-09
By God you are shameless, lies, debauchery and hypocrisy. A cartoon government!
Rabah Posted 2009-06-13
Like many Algerians, I lost many years looking for a stable job. Most of my life was lost on the way. However, pointing a finger a state without any real plans is just touching on the tip of the iceberg. The main part of our problems is in the new profile of Algerians in general. We have become a people without any principles or human characteristics. Hundreds of thousands of young graduates could, with their own specialisation, start small businesses and work for themselves, but there is a terrible monster called "ripping people off" that is swallowing anything that moves. We are a people of rip offs in general, egoistic and thieving. So, let us not use the name "God", because our state is made in our own image.
المظلوم Posted 2009-07-06
You dogs, liars, thieves.
موظف مسكين عنده 40 عام و باغي يتزوج Posted 29 days ago
Salam alikum officials. I am an employee in an institution...I found work after a long period of unemployment. I had had enough of being unemploymed until I reached 40. I am a human being waiting for this increase they are talking about. You know, I am engaged and waiting for this increase to marry, to offer a high dowry. Oh officials, approve this pay raise. May God grant you long life. By God, I am on the verge of begging at the doors of mosques for people to help me. I work in public service. Maybe I won't buy a house or marry until I turn 60. Long live the Algerian people. Long live Algeria. No to injustice.
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