The measures, announced on April 9th, involve boosting state workers' salaries by 500 dirhams as of July 1st, which will cost the treasury 7 billion dirhams. In the private sector, the government suggested increasing the minimum wage (SMIG) by 10% and raising the retirement pension from 600 to 1,000 dirhams.
Furthermore, the authorities envision an insurance scheme for employees when a company is declared bankrupt and incapable of honouring its social commitments towards its workers. They also promised to bring forward a law on compensation for loss of employment.
The government offer is negotiable and needs to be revised upwards, according to Democratic Labour Confederation (CDT) member Abdelkader Zaer.
The CDT, which boycotted the social dialogue, proposed a gross increase of 700 dirhams in the monthly pay of civil servants, public and private sector workers and pensioners. It also called for a 50% rise in pensions and SMIG as well as tax exemptions for pensions. The union insisted that income tax be reduced to 34%.
According to Moroccan National Workers' Union (UNTM) Secretary-General Mohamed Yatim, the government proposals are certainly positive, particularly with regards to pensions. The measures, however, are not enough to meet people's needs or compensate for the erosion of their purchasing power, he said.
The UNTM called for a 20% pay hike and insisted that the SMIG be increased to 3,000 dirhams.
Meanwhile, the Moroccan Workers' Union (UMT) went further by demanding a 3,500-dirham minimum wage, the reduction of income tax from 38% to 35% and the introduction of an allowance for young job-seekers.
Responding to unions' demands would require 43 billion dirhams, according to Moroccan Finance Minister Salaheddine Mezouar. It will be difficult to release such a sum in the course of a single year and "will need to be spread over three years", he said.
Employees, however, are impatient to see the practical outcome of the negotiations between the government and its social partners.
"I just get 2,200 dirhams," private company worker Ahmed Chemlali said. "I'm forced to live with my parents. I need a salary of at least 3,500 dirhams if I'm going to be independent."
For his part, public sector employee Mohamed Jebli complained the cost of living has been climbing continually, whilst salaries have remained static.
"What we want are solutions which will have a practical impact on our living standards," he said. "I think there are now some practical proposals on the horizon."
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