Unions Criticise Lack of Consultation on Subsidies

2 April 2011

Maputo — Mozambique’s largest trade union federation, the OTM, has criticised the government for its failure to consult with the labour movement before announcing the end of the current subsidies on fuel and wheat flour.

On Tuesday, the government announced that it was switching from general subsidies to subsidies that target specific social groups. Thus instead of a fuel subsidy given to transport operators, a bus pass system will be introduced for students and workers.

And instead of a general subsidy on wheat flour and on low grade rice, urban dwellers on low incomes (2,000 meticais – 65 US dollars – or less a month) will be entitled to a monthly food basket sold to them at subsidised prices.

In a press release received by AIM on Saturday, the OTM Executive Committee protested that these measures have been introduced without any consultation with the trade unions, or with the government’s other partners. Furthermore, the new measures were not preceded by any evaluation of the effect of the existing subsidies.

The OTM argued that one of the causes of the riots against price rises on 1-2 September last year was “the lack of mechanisms for consultation and dialogue”.

“Everything indicated that the government was interested in improving these mechanisms, but once again this did not happen”, the OTM said. “Instead, the government has taken measures which will have profound effects on the workers and on society in general without at least seeking the viewpoints of its social partners”.

The OTM declared that it rejects this method of working, which runs counter to the principles of “inclusive governance and social dialogue” advocated by the government itself.

As for the content of the government measures, the OTM Executive says it is analyzing them and will give its opinion “in due course”.

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