Social dialogue: Things are getting serious
The government’s proposals to social partners are expected to be made over the next few days. The unions and the Moroccan employers´ association CGEM have expressed their priorities during the meetings held last week. Expectations in relation to this social dialogue are high.
The unions, as much as the employers, want concrete gains, assurances, and firm commitments. The balance to be struck between the demands of all parties is not easy to reach, especially in a situation marked by high inflation and soaring prices of energy products and raw materials. The impact of the Ukrainian crisis is significant even though Morocco, as is the case for several countries, still bears the scars of the economic consequences of the health crisis.
The CGEM insisted on two issues: the adoption and enactment of the law governing the right strike as well as the gradual revision of the Labor Code. Without this, the employers´ association would not be ready to agree to an increase in the minimum wage, for example.
The first piece of legislation was promised by two successive governments, that of Abdelilah Benkirane and that of Saâdeddine El Othmani, without managing to come into being. Tabled in Parliament during the last legislature, the discussion of this draft law was sent to the second Chamber – the House of Councillors- under pressure from the unions. Made up of 49 articles, this bill, which is dear to the heart of employers, aims to put order in the exercise of the right to strike by putting an end to the occupation of workplaces or by making strikes a solution of last resort. As far as the second piece of legislation is concerned, its upgrading becomes urgent. The Labor Code dates from 2004 and does not take into account the changes that have taken place in the functioning of organizations, and more generally the economic and social changes. The CGEM also wants responsible job flexibility to be introduced while combining competitiveness and employee safety.
For workers unions, improving incomes and purchasing power are top priorities. “We insist on this component especially with inflation and soaring prices. Several avenues exist, including the overhaul of the income tax grid”, underlines Miloudi Moukharik, General Secretary of the UMT workers union.
If an agreement concerning the income tax is reached, it will only be applied in 2023. The measure would be included in the next Appropriations Bill. In any case, the tax authorities (DGI) have carried out simulations relating to this tax which has not been altered since 2010. On this date, the marginal rate rose in two stages from 42% to 38%. Reducing the tax burden on wages would be welcomed by employers. “Morocco is still positioned among the African countries with the highest tax burden. The relative importance of compulsory levies including social security contributions even places Morocco ahead of several middle-income and/or emerging countries such as Turkey, Mexico, or Chile, where the tax burden ranges between 20 and 25%”, notes the Centre Marocain de Conjoncture magazine in its latest issue.
Today, the whole question is to know how much of the tax will be reduced by the Government: will a new bracket be introduced? Will the executive branch of Government limit itself to increasing the tax threshold? In any case, in the private sector, the majority (58%) of taxable income is found below the exempted threshold of 30,000 Dirhams.
The UMT, like other unions, is asking for a general increase in wages, an increase in the minimum wage, as well as the deduction of tuition fees from the taxable income. Indeed, some schools have announced an increase in tuition fees for the next academic year.
