The unionists were waiting for a gesture from the government, an expression of readiness to return to the national consultation table and reach a consensus on increasing the Angolan minimum wage, which has been rapidly losing purchasing power in the face of the devaluation of the currency. Kwanzaa and inflation. Since the executive of President João Lourenço has not taken this step, the unions will move towards a three-day general strike starting on Wednesday.
She added: “We are repeating the strike and explaining, above all, to national and international public opinion, the motives that prompted us to strike, as the government, during six rounds of negotiations, since last December, has not provided convincing answers.” Lusa quoted union spokesman Adriano Manuel.
The central union forces, the National Transitional Trade Union Confederation, and Central General dos Trabalhadores – CGSSILA, are trying to negotiate a list of demands with the government that includes, in addition to increasing the minimum wage, modernizing and reducing public service salaries. In taxes, but the situation reached a dead end as the two parties were far from reaching an agreement.
The current minimum wage in Angola is 32,181 kwanzas, equivalent to 35 euros, and unions sat at the negotiating table for an increase to 245,000 kwanzas (268 euros), a value announced by the Minister of Public Administration, Labor and Social Security, Teresa. Dias, indeed, considered it “totally out of the ordinary.”
“For the implementation of a national minimum wage of K250,000, everyone must be able to pay this amount, even for domestic workers,” the government official added. New newspaper.
In response to the unions' proposal, the executive opposed three levels of minimum wage increases: 48,000 kwanzas (53 euros) for small businesses, 70,000 kwanzas (77 euros) for medium-sized companies, and 96,000 kwanzas (105 euros) for small businesses. Big companies.
The country is mired in a serious currency crisis, meaning that today it takes approximately 907 kwanzas to buy one euro. Since most inputs are imported, large companies are postponing or canceling investments, and the possibility of new layoffs looms on the horizon. This is in a country where the unemployment rate rose in the last quarter of 2023 to 31.9%, and where only 10.5% of the population, according to the International Labor Organization, benefits from social security support.
With the International Monetary Fund (IMF) calling for further budget adjustment and increasing the sustainability of Angolan public debt (rising to 84% in 2023 due to the depreciation of the kwanza), and demanding that the government prioritize structural reforms to reduce dependence on foreign exchange. OIL – Diversifying the Angolan economy is something that MPLA governments have promised since the 2002 post-peace deal fiscal cordiality, but this Tuesday, economist Alves da Rocha said in a debate at the Catholic University of Angola. Lusa newspaper reported that “this is not happening” and that the immediate future does not look promising for Angolans.
The latest annual analysis of the Angolan economy by the International Monetary Fund and presented last week in Luanda revised growth of the Angolan economy in 2023 to just 0.5% (mainly due to a 6.1% decline in the oil sector), and forecast growth of 2.6%. % in 2024, but with strong risks of downward revision of forecasts due to oil sector fluctuations.
President João Lourenço returned on Tuesday from China, where he was on an official visit and the issue of repaying Angola's foreign debts was at the top of the agenda, especially since China remains the country's largest creditor. According to the Business magazineThe Angolan president went on to negotiate a deferral of interest payments on the debt in order to relieve some of the pressure on the depleted public treasury. Beijing reportedly offered 12 months, but Lourenço tried to extend a longer period, which may have given the Angolan head of state greater negotiating power, considering the recent cooling in relations between the two countries and Angola's rapprochement with the United States.
In the midst of this difficult economic situation, unions are seeking to gain some purchasing power for public sector employees who have seen their purchasing power suffer continued erosion since the current minimum wage came into force on February 1, 2022. At that time, it took 565 kwanzas to buy 1 euro. . Since then, the value of the Angolan currency has depreciated by more than 50%.
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