CONFEDERATION OF FREE TRADE UNIONS

(SEF/IUF)

Memorandum to Government

In the context of the

Budget Exercise 2019-2020

Unity House, 107A Royal Road, Beau Bassin

Tel: 464 4242, 466 0672, 466 0626
Fax No. 465 3220

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The Confederation of Free Trade Union is hereby submitting its proposals for consideration in the

light of the forthcoming Budget 2019/2020.

In spite of several measures which the present Government has introduced over past budgets

like National Minimum Wage, Negative Income Tax, Free Education for Students attending

University and other measures for the vulnerable group, we have been witnessing an erosion of

values and growing numbers of cases of violence, theft, crimes which do not augur well for the

future of Mauritius as a safe and sound country for Mauritians as well as for Tourists and

Investors.

The Confederation deems that there is an urgent need to lay a lot of emphasis on social justice

as a foundation for Sustainable Development and Decent Work as well as lasting Peace and

Security.

BUDGET PROPOSALS 2019 - 2020

1. REINSTATING THE MINISTRY OF ECONOMIC PLANNING/DEVELOPMENT

The Ministry of Economic Planning & Development should be reinstated as a total separate entity

with the objective of advising Government on long- and medium-term planning on the economic,

social and environmental fields.

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In the same manner as Vision 2020 was developed which took an inclusive approach involving all

actors including civil society organisations. International experience has shown that social

dialogue improves the design of policy measures, it contributes to their effective implementation

and improves the quality of the outcomes.

The introduction of the National Minimum Wage since January 2018 is a vivid example where

social dialogue has proved to be a success. The economic development of the country does not

go in pair with the social upliftment of the people which should not also be to the detriment of

the environment.

2. Income Tax Measures

It is appreciated that several social protection measures have been introduced with a view to

reduce inequality and protect the vulnerable groups of society such as for the casting of slabs,

etc.

However, workers in the middle-income group who do not benefit from the special schemes

put up by government are the ones who are the most affected when it comes to

taxation especially direct tax.

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We appreciate the Government’s decision in the last budget to decrease the Income Tax rate

from 15% to 10% for employees earning up to Rs 650,000 Yearly.

We are requesting, in line with the declared policy of the government to bring social justice to

the middle-income earners, the following measures:

(i) That the Income Exemption Threshold be raised to Rs 325,000

(ii) That a three tax band at the rate of 5%, 10% and 15% be introduced:

a) The first chargeable income of Rs 325,000, i.e between Rs 325,001 to Rs 650,000 be

taxed at 5%

b) The next chargeable income of Rs 325,000, i.e between Rs 650,001 to Rs 975,000 be

taxed at 10% and

c) All chargeable income above Rs 975,000 be taxed at 15%

(iii) Deduction to be allowed for unemployed youth who are under the responsibilities of

their parents.

3. Adjustment of Salaries

We are requesting Government to earmark the necessary amount of money to ensure the

implementation of the recommendation of the PRB on adjustment of salaries as per section 9 of

the National Minimum Wage Consultative Council Act that stipulates that the Pay research

Bureau should ‘ come with administrative measures to implement the National Minimum

Wage and make any salary adjustment ,where necessary, to address any problem of relativity

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distortion that may arise on the introduction of the National Minimum Wage in the public

sector”

4. Training and Staff Development

We note with regret that the recommendations of PRB with respect to training and staff

development in the whole of the public service has not been respected by Ministries,

Departments as well other organizations falling under the PRB. We are therefore proposing the

creation of a post of Training Officer in each Ministry, Department and organization.

The postholder will be responsible for preparing the Training Needs Analysis of the said

organization, preparing the workplan for all the employees and ensuring the effectiveness of

the said training in the best interest of both the internal as well as the external customers.

5. Situation of Foreign Workers in Mauritius

Though we have to admit that foreign workers have played an important part in the development

of the country yet it is important to have checks and balances on the inflow of foreigners in the

country for many reasons. It is imperative that, before it is too late, a study be conducted on

the situation of Foreign Workers in Mauritius. Students are currently seen working in bakeries,

restaurants, hotels, petrol stations and supermarkets. The import of Foreign Labour should be

complementary but should in no way be a passport to replace local workers. It is felt that

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import of foreign labour opens the door for many abuses by some employers for many

reasons one being to avoid paying the National Minimum Wage. For workers found illegally

in Mauritius employers who have recruited them should be held responsible too. In some cases,

it has been discovered that some foreigners are even indulging in illicit activities. The need to

conduct a study on the whole situation of Foreign Workers in Mauritius is therefore deeply felt.

6. Duty Free Car

As a means to promote effective social dialogue and to ensure fruitful discussions it is vital for

trade unions to be provided with necessary facilities so that they can be placed on a level playing

field with the other social partners.

In this context the following proposals are being made:

(i) Trade unions should be given full duty exemption instead of 85% duty remission

for the purchase of a motor vehicle every five years.

(ii) Trade union should be exempted from the payment of Registration Duty as is the

case for taxi owners.

7. Duty free on construction materials

Duty exemption should be given on building materials to trade unions for the building/

renovation of their offices and the setting up of their training /recreational centres. The

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Confederation is requesting that full duty exemption be given to trade unions on purchase of

furniture and equipment once every 5 years.

8. Creation of Posts

While recognizing that several posts have been filled in the civil service yet we have seen that

there is an acute shortage of staff in several sectors namely among the Non- Teaching Staff,

paramedical staff, technical staff of different Ministries/Departments.

9. Assise du Social

We are witnessing a growing number of accidents and cases of violence even extreme ones.

There is also an erosion of values which has become a serious threat to peace and stability.

Instead of dealing with the scourge of society in a piece meal manner it is imperative to envisage

a holistic approach to all the problems of society.

Sustainable solutions need to be identified at source. We are therefore proposing an “Assise

du Social” to be an inclusive one involving all sectors i. e government, private sector, civil

society organisations including trade unions.

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 10. Staff Welfare

The item voted on Staff Welfare is either being wrongly or not utilized at all. There is a need

to review this scheme to ensure it is serving its purpose. Trade unions should be involved in the

discussion. The amount should be increased

11. Public Service Bill

The introduction of a Public Service Bill is a commitment of this Government as mentioned in the

Government Programme 2016-2019. This piece of legislation is vital in demarcating the

prerogatives and respective powers of the administrative arm, on the one side, and the political

arm, on the other. For the sake of good governance, transparency and accountability, we are

urging the passing of this Bill as soon as possible.

An Ombudsperson for Public Service should also be appointed to deal with defaulters be it

Advisers, politicians or public officers.

Legislation should be passed to provide for the mandatory declaration of assets for MPs and

other high-ranking public officers and officials.

12. Water

Provision to be made in the Budget to replace pipes. Aggressive sensitization campaign should

also be launched for a judicious use of water. Essential resources and services remain a common

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right in the context of the SOCIAL CONTRACT. Provision and management of those services and

resources should NEVER be privatized. They should remain accessible to all and this can only be

ensured if they remain under the direct control of the State.

Privatisation of services has always proved costlier to the public. Promotion of Quality Public

Service is the only guarantee for sound economic, social and sustainable development. The

recent financial crisis is testimony of the limitations of privatization.

13. Review of Pensions formula for public officers and spouses

The formula for calculating of pensions of public officers should be improved. Public officers

going on retirement after completing 33 1/3 years of service should be entitled for a reduced

pension amounting to at least 2/3 of their last monthly salary and a lump sum of 30 months’

salary instead of 25 months.

Public officers who have been found guilty in court should not be penalized thrice. We are

therefore requesting that the Pension Act be amended so that a Public Officer does not lose his

pension as a result of being found guilty in a court of law and sentenced.

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 14. Refund of Leaves --- Non taxable

Refund of sick leave and vacation leaves should be tax free. Maternity leave should be extended

to 6 months with pay instead of 3 ½ months.

15. Old Age Pensions

We request an adjustment of old age pension to the National Minimum Wage and that

adjustment be made for pensioners.

16. Collective Bargaining in the Public Service

We are requesting that Collective Bargaining be practised in the government in as far as

conditions of service is concerned.

We are therefore requesting that Government ratify ILO Convention 151 “Protection of the Right

to organize and procedures for determining Conditions of Employment in the Public Service”.

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 17. Reforms of the Public Service Commission

For a real transformation of the public service which will respond to the needs of the population

irrespective of status there is an urgent need to bring reforms to the PSC. It should stop

delegating its powers to Ministries and Departments for recruitment and promotion.

The Chairperson should be a retired Judge and the number of really

independent Commissioners increased to include other professionals even outside the

service like Psychologists, Sociologists etc. The appointment should be subject to consultation

with representative workers’ organisations.

In the Public Sector internal selection or promotion shall not only be based on interviews only. A

thorough inquiry on the selected officers, experience, behavior, performance, etc., to be

considered as well when recruited for better outcome/results. Other reform initiatives are

necessary for the PSC to become accountable and transparent. All interviews carried out for a

selection exercise should be video recorded by the PSC.

18. Rodrigues

Necessary provisions need to be provided to the RRA to allow Rodrigues to take off and not to

lag behind in terms of progress.

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 19. Amendment to the PBAT Act

The Public Bodies Appeal Tribunal should be given more powers, resources and means to

enable it to do its job more efficiently and to enforce its judgements.

It should also be empowered to deal with recruitment in the Public Service and all promotions

and recruitments under the Disciplined Forces Service Commission and also for all promotions

made with the consent of the Prime Minister.

20. Allowance to Unemployed Youth

We have mentioned earlier the need for allowing deductions from income tax in respect of

Unemployed youth. There are, however, young unemployed people who are parentless or whose

parents are already below the taxable threshold. For those, we are of the view that they should

be paid an allowance during periods of unemployment, as this will allow them some financial

independence.

21. Precarious employment

The Government Programme States clearly at para. 32 that the “labour legislation will be

amended to better protect employees”

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We believe that it is high time that the Employment Rights Act and the Employment Relations

Act be amended promptly to provide a decent and secured employment to workers.

22. Environment, Renewable Energy and Climate Change

Climate change is a major challenge. The following are measures that can help in mitigating its

impact at the level of individual households. Acting locally while thinking globally:

 Incentives should be given to individual households to produce their own renewable

energy with a view to reduce dependence on fossil fuel

 Purchase of solar heaters and rain water harvesting equipment should be fully subsidized.

 The distribution of compost bins should be further extended to reach the largest number

of households. Ideally, each household should be provided with a compost bin.

 The tri des dechets can further be enhanced by the setting up of selective collection of

non-degradable waste by waste collectors.

23. Health and Safety in the Public Service

It has been observed that the Occupational Safety Act is not being complied with by many

Ministries and Departments in terms of basic amenities and protective equipment. The report of

the Safety and Health Officers should be submitted to the trade unions representing the

employees concerned and prompt remedial actions taken by management failing which the

Ministry /Department concerned should be subject to prosecution. Charity should start at

home.

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