Morocco 'getting down to work' on unemployment benefits

2009-11-13

The Moroccan government says a draft law is in the works to extend insurance payments to the unemployed.

By Siham Ali for Magharebia in Rabat — 13/11/09

[HOANG DINH NAM/AFP/Getty Images] A draft bill aims to help jobless Moroccans, PM Abbas El Fassi said on Wednesday

A new draft law may end the nine-year logjam between the Moroccan government and trade unions over who will pay for unemployment benefits.

"One of the challenges facing the social security system these days is the establishment of an insurance scheme covering job loss," Employment Minister Jamal Rhmani told reporters at a Monday (November 9th) celebration to mark the 50th anniversary of the national social security fund. "The government is trying to speed up the process, so that the draft [insurance] law can be introduced as soon as possible."

At a "Social Dialogue" meeting on Wednesday, Prime Minister Abbas El Fassi reiterated the pledge, telling labour leaders that the government is "getting down to work" on the draft law.

The law has been delayed for nine years due to disagreements with the unions over employee contributions to the compensation scheme. During these negotiations, the unions had refused to help with funding it, and employers had not wanted to shoulder the entire burden themselves.

The government has now suggested that three parties — the government, employers and employees — each contribute a third of the insurance scheme's funding. According to the Employment Ministry, the draft law will set forth monthly payments of 50-70% of the reference salary, which is not to exceed the minimum wage, up to a maximum of 6,000 dirhams.

Under the new law, laid-off workers would retain their full rights to coverage by social security, medical and vocational training systems for six months. Compensation is planned for cases of breach of contract, where this is a unilateral decision by the employer. The employee should also benefit from assistance from the National Agency for Promotion of Jobs and Skills and the Office of Vocational Training and the Promotion of Labour.

Union leaders gave a cautious welcome to the government's proposal.

"This is a step in the right direction, because the State is going to contribute to the fund to compensate employees who lose their jobs," Larbi Habchi of the Democratic Workers' Federation told Magharebia.

"The scheme is urgently needed to come to the rescue of a great many workers," said Miloudi Moukharik of the Moroccan Workers’ Union. But, he added, "the size of contributions needs discussion, since employees can't possibly pay the same amount as employers, since they have fewer resources."

"This compensation scheme is needed now more than ever, since legal shortcomings in this area are exacerbating the problems caused by the international economic crisis," said union member Abderrahim Handouf. "Funding needs to be a shared task."

As the global financial crisis threatens their jobs, many Moroccans are ready for the peace of mind that would come with guaranteed unemployment benefits.

"The situation of employees is highly unstable, with factories being closed due to the crisis, and they feel uncertain about the future," textile worker Hamid Kabbouri told Magharebia. "If we already had compensation available in the event that we lost our jobs, everything would be different."