Tunisian Workers' Union in standoff over public sector pay

Tunisian Workers' Union in standoff over public sector pay
In-depth: Deferred pay raises are the latest feature in a government austerity programme that has been rejected by workers' groups, reports Massinissa Benlakehal.
4 min read
09 November, 2016
Protests against the government austerity programme have been frequent in Tunis [Getty]
Tunisia's powerful workers' union is locked in a standoff with the newly appointed government, and has threatened a general strike if its demands are not met.

The General Labour Union (UGTT) staunchly opposes the austerity measures announced as part of Tunisia's 2017 Finance Law and rejects the government's proposed formula on re-scheduling wage increases.

Union bosses and government officials held talks over the weekend concerning public sector wage increases, yet agreement appears to be still out of reach.

The union's position remains unchanged, again rejecting the deferment of wage increases to 2018.

The finance bill for 2017 proposes new austerity measures such as the freezing of wage increases and rising taxation.

UGTT Deputy Secretary-General Mbarki Bouali told reporters the proposal aimed "to fill the state's treasury without touching the wage increases in the public sector".

As part of the dialogue sessions between the two parties, another meeting is planned early next week.
The postponement of wage increases isn't the solution to fill the state's coffers, and it escalates the social tensions in the country


"The government's decision to defer the payment of wage increases is due to its commitments to foreign donors who consider the payroll in Tunisia high," the union's Mouldi Jendoubi told the press.

During their meeting on Saturday, the government's representatives stressed the financial pressures currently experienced by the country as creditor institutions insist on getting to Tunisia pay its debts.

The Tunisian state's debt is estimated at trillions of dinars. UGTT's Mbarki says this can only be addressed "by establishing a proper mechanism".

"The State has an obligation to find a formula to recover its debt in this difficult socio-economic situation," Mbarki said. "The postponement of wage increases isn't the solution to fill the state's coffers, and it escalates the social tensions in the country."

The UGTT is calling on the government to respond positively to the workers, and follow the public sector wage increases agreed with the former government of Habib Essid.

Read more: Desperate to be heard, Kasserine's unemployed attempt mass suicide

Finding agreement and reaching a compromise doesn't seem such an easy bargain at the moment.

The North African nation's difficult economic and financial situation is a real dilemma, as the newly appointed government has also to respect international loan agreements signed by its predecessor.

Since the 2011 revolution, the country's leadership has seen seven prime ministers. Youssef Chahed is the most recent, appointed early in September.

First imposed in November 2015, the state of emergency was last month again renewed, for another three months.

The renewal is a reflection of both the security and social situation, despite the government's official argument that the security situation has improved.

The country is experiencing critical challenges such as an increasing youth unemployment rate as well as assistance to companies.

During the past nine months, the tourism industry fell by a further 34.1 percent, according to figures released by the ministry of tourism and handicrafts.

In the country's more remote areas, where no tourism industry exists, social anger has been growing as the political sphere is slow to respond.

The powerful workers' union, meanwhile, stands firm as it rejects any postponement or cancellation of wage increases.

No details have yet been given regarding the union's back-up plan if negotiations fail.

The union's administrative commission is the only authority that can decide what action needs to be taken, Mbarki says.

The situation in Tunisia justifies the implementation of a true Marshall Plan



There were at least 800,000 public sector workers in 2014, including public companies, mining companies as well as teachers and municipality personnel.

In mid-September, the European Union said it believed "the situation in Tunisia justifies the implementation of a true Marshall Plan, properly equipped to support democratic consolidation and globally promote the investment and development in all sectors of economic and social life."

Read more: Protests erupt as Tunisia's fading tourism industry threatens economic collapse 



For the EU, such a plan is required "particularly for job creation and the maintenance of quality public services accessible to all".

The European Union subsequently announced it would invest some 300 million euros per year, between 2017 and 2020.

EU assistance is currently estimated at 170 million euros per year.

Tunisian authorities reportedly plan to issue a one million euro bond in order to be able to pay for the budget. This loan, says Finance Minister Lamia Zribi, "will help finance the state budget which posts an additional deficit of 500 million dollars".

The country's MPs are still debating in parliament over the necessity to continue foreign borrowing instead of relying on local sources of funding.

But suffering an unprecedented economic crisis, the country has announced it needs $20 billion in financial aid. 

Follow Massinissa Benlakehal on Twitter: @mbenlakehal