Private Sector Salary Negotiations Postponed by Mozambique’s Top Business Body

(3 Minutes Read)

The CTA said in a statement that its appeal comes in response to the instability in the country’s business sector caused by the post-election crisis. The organization argued that the current salary adjustment could lead to possible layoffs, growth in informality, and inflationary pressure, in addition to the reduction in tax revenue and loss of workers’ rights.

The Confederation of Economic Associations of Mozambique (CTA), which represents the private business sector, has called for the postponement of salary adjustment negotiations until August, given the current crisis.

Negotiations for salary adjustments in Mozambique, especially in the public sector, usually take place at the beginning of each year, between January and April.

The CTA said in a statement that its appeal comes in response to the instability in the country’s business sector caused by the post-election crisis. The organisation argued that the current salary adjustment could lead to possible layoffs, growth in informality, and inflationary pressure, in addition to the reduction in tax revenue and loss of workers’ rights.

The CTA chairman also called for the implementation of support measures for the private sector, such as credit lines, temporary tax exemptions, and increased security.

Mozambique has been experiencing violent social unrest since October, with demonstrations and strikes called by former presidential candidate Venâncio Mondlane, who rejected the election results of October 9, which gave victory to Daniel Chapo.

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Almost a thousand Mozambican companies were affected by the post-election protests, with an impact on the economy of over €480 million, according to the most recent estimate by the Confederation of Economic Associations (CTA).