Professional Documents
Culture Documents
Le Rapport Du NRB Dans Son Intégralité
Le Rapport Du NRB Dans Son Intégralité
PROPOSED
RECOMMENDATIONS
December 2015
TABLE OF CONTENTS
Pages
1.0 Introduction
1.3 Remarks
1.8 Acknowledgement
Annex:
A. Cinema Workers Remuneration Regulations 2005
20
26
40
55
64
78
88
94
102
1.0 INTRODUCTION
On 24 September 2013, the then Minister of Labour, Industrial Relations and Employment
acting under Section 91 of the Employment Relations Act [ERA], referred to the National
Remuneration Board (NRB), the review of wages in respect of workers drawing less than Rs
6,500 per month in the following Remuneration Regulations:
1. Baking Industry Remuneration Regulations 2003
2. Cinema Workers Remuneration Regulations 2005
3. Domestic Workers Remuneration Regulations 2010
4. Export Enterprises Remuneration Regulations 1984
5. Factory Employees Remuneration Regulations 2001
6. Field Crop and Orchard Workers Remuneration Regulations 2008
7. Light Metal and Wooden Furniture Workshops Remuneration Regulations 2002
8. Livestock Workers Remuneration Regulations 2008
9. Nursing Homes Remuneration Regulations 1983
10. Pre-Primary School Employees Remuneration Regulations 2000
11. Private Secondary School Employees Remuneration Regulations 1984
12. Salt Manufacturing Industry Remuneration Regulations 1983
13. Sugar Industry (Agricultural Workers) Remuneration Regulations 1983
14. Tea Industry Remuneration Regulations 1984
Given that the above referral restricted the review of wages to only those workers who drew
less than Rs 6,500 per month, the then Minister deemed it fit to make a second referral to the
Board on 14 October 2013 to extend the scope of the review of wages to all category of
workers governed by the 14 Remuneration Regulations. The second referral goes towards
avoiding any prejudice that could have been caused to the workers by the Boards lack of
mandate under the first referral to maintain relativity in the different job categories and the
Board highly appreciates such an initiative.
1.1 THE BOARDS STAND
Before proceeding with the review proper, the Board wishes to draw attention to the
followings:
(i)
The lowest prescribed salaries for workers on full time employment in sectors 1, 6, 8 and
11 above exceed Rs 6,500 per month and as such, they no longer fall within the purview of this
revision exercise. The Board accordingly sets aside the review of wages in sectors 1, 6, 8 and 11.
It however wishes to point out that the prescribed salary of Caretaker, Cleaner, Gardener in the
Private Secondary School Employees Remuneration Regulations is in relation to part time work
and same should be adequately clarified in the Regulations to avoid any prejudice that may be
caused to workers due to its misinterpretation.
(ii)
The Board has a mandatory duty under section 91(3) of the Employment Relations Act
2008 to submit a recommendation to the Minister upon a referral made by him under Section
91. Given that the review of wages in the remaining 10 sectors has been sent to the Board in
one and same referral, the Board is bound in law to submit one recommendation in which the
review of wages of the different sectors shall be annexed.
(iii)
A full review of the Manufacturing sector (which includes both Factory Employees
Remuneration Regulations and the Export Enterprises Remuneration Regulations) has been
referred to the Board by way of a different referral made under section 91 of the Employment
Relations Act 2008. The said review is presently before the Board awaiting full investigation for
recommendation purposes. Pending a full review of the manufacturing sector, the Board finds it
appropriate, for the purpose of this partial review, to make a transitional review of wages for
the two above named sectors as per the present reference.
1.3 REMARKS
1. Data provided by Statistic Mauritius with regards to the Factory (Manufacturing) sector
has not been used because it tends to carry several components other than the one
targeted by the Factory Employees Remuneration Regulations and same had the risk of
overestimating the figures.
2. The referral made by the Minister is in relation to workers who are drawing less than Rs
6,500 monthly. For the purpose of this review, the Board considers the figure of Rs
6,500 to be that of basic salary of workers employed on a full time basis.
3. The Board equally wishes to point out that that the technical team had to face much
difficulty with certain employers during the investigation process. The flow of
information was slow and some reluctance was observed from the part of some
employers in the release of workers to attend interviews. The Board also wishes to
disclose the lack of prompt collaboration from the part of certain government
authorities to provide information crucial to this review exercise. The Board therefore
makes a special request to all government institutions to expedite matters in future
reviews to help it make timely recommendations.
that wages of like category of workers in the different sectors should be aligned and relativity
between grades maintained.
Mr. Chuttoo also made representations for the introduction of a salary scale to replace the flat
salary which exists in certain sectors.
In his submissions to the Board, the representative of the CTSP acknowledged that there are
certain sectors which would not be in a position to sustain the proposed increase in wages.
1.5 THE BOARDS STAND IN RELATION TO THE SUBMISSIONS MADE BEFORE IT
The Board considers the submissions made in relation to the introduction of a basic survival
wage of Rs 8,000 in all the sectors concerned to be an issue relevant to national minimum wage
which falls outside the province of the NRB. The Board wishes to highlight that it is mandated
under the law to make recommendations on wages and conditions of employment on the basis
of the specificity of each particular sector.
With regards to the reference made to the Office Attendants (R.O) Regulations, the Board
wishes to point out that the Office Attendant Remuneration Regulations is peculiar in as much
as contrary to all other remuneration orders where a particular sector or economic activity is
covered, the Office Attendants Remuneration Regulations does not cover a particular sector. It
caters for a specific occupational coverage and as such any comparison to same would tend to
mislead the current review.
Regarding the representations made for the introduction of a salary scale to replace the flat
salary which exists in certain sectors, the Board wishes to highlight that it appreciates the
prejudicial effect which a flat salary may represent to workers reckoning long years of service
with the same employer. However, investigation led by the Board has revealed that the sectors
concerned are already facing much difficulty to survive and hence they would simply not be in a
position to sustain the increase in salaries which the introduction of a salary scale would entail.
In the circumstances, the Board makes no recommendations on the issue of the introduction of
a salary scale.
1.8 ACKNOWLEDGEMENT
The Board extends its thanks to:
(i)
all parties and other institutions or persons who, through their representations,
depositions and cooperation, have greatly contributed to help the Board reach
the present recommendations;
(ii)
the members of the staff for their invaluable collaboration characterized by their
relentless effort, praiseworthy commitment and professional approach; and
(iii)
the members of the supporting staff for their contribution in the recording of
minutes of proceedings and making same available for reference.
DECEMBER 2015
Annex A
Wage Review of
Cinema Workers
(Remuneration Order)
Regulations 2005
10
Economic Analysis
Compensation of employees
The National Accounts Unit of Statistics Mauritius defines the Compensation of employees as
comprising of all payments of wages and salaries by producers to their employees. Payments in
kind and contributions to social security and to private pension fund, casualty insurance and
250
62
61
60
59
58
57
56
55
54
53
52
2009
2010
2011
2012
2013
2014
Years
200
150
100
50
0
2009 2009.5 2010 2010.5 2011 2011.5 2012 2012.5 2013 2013.5 2014
Years
Compensation of employees increased from Rs 127 Mn to Rs 195 Mn for the period of 2009 to
2014. Compensation of employees as a percentage of value added rose from 54.9% in 2009 to
60.7% in 2014.
Share of GDP
Gross Domestic Product is the sum of value added of all domestically produced goods and
services. It represents the aggregate money value of all goods and services produced within a
country out of economic activity during a specified period, usually a year, before provision for
the consumption of fixed capital. GDP at basic prices is obtained as the difference between
output and intermediate consumption whereby output is valued at basic prices and
intermediate consumption at purchasers price. The figures below illustrate the share of GDP of
the cinema sector in Mauritius over the period 2012 to 2014.
11
0.12
0.1
0.08
0.06
0.04
0.02
0
2012
2012.5
2013
2013.5
2014
Years
350
300
250
200
150
100
50
0
2008 2009 2010 2011 2012 2013 2014 2015
Years
8
7
6
5
4
3
2
1
0
2009
2010
2011
2012
Years
2013
2014
The figure shows the real growth rate of the cinema sector, whereby real growth rate refers to
nominal growth rate after adjustment is made to changes in the price level. In 2009 real growth
rate stood at 9.0%. However, GDP in this sector fell slightly in 2010 to 8.2% and stood still to
8.4% in 2011 and 2012 and further deteriorating to 7.0% in 2013 and to 6.7% in 2014. Thus, real
growth rate kept on declining over the period.
13
Factual Analysis
A sample of 8 establishments was initially selected to assess the cinema sector in Mauritius as
far as the minimum wage determination is concerned. However, the sample has been reduced
to only 4 establishments. The reasons provided by operators/establishments are:
Establishment being a family concern
Cinema under renovation
Establishment has ceased operation
The Sample
Employers
All employers in the sector provide cinema services with more or less similar standards and
opening hours vary between 9.30 hrs and 23.30 hrs with an average of 7 employees each.
Employees
On the other hand, a sample of 15 employees has been selected for the purpose of this study
exercise in order to fairly assess the sector. The categories of employees that the technical
team has come across are tabulated below:
Category of workers
Number
Projectionist
Ticket Controller
Caf Keeper
Cleaner
Others
Total
15
14
The technical team has noticed the fact that none of the employees in this sector is working on
a contractual basis. All employees are working on a full time basis with the exception of only
one employee who is employed on a part time basis. It is to be pointed out that upon further
investigation with the employee who averred to be working on a part time basis, it was found
that the said employee was in fact working on a full time basis since he covered 8 hours a day/
shift but the employer affirmed that the latter was working on a part time basis.
However, the technical team did not come across the following categories of workers:
Driver
Store assistant
Helper
Assistant projectionist
Usher
Caf assistant
Demographics
Age Group
The mean age group found in the cinema sector is distributed equitably in the range of 18 to 30
years and 41 to 50 years and is illustrated as follows:
15
The figure indicates that the sector accommodates for quite a young working population.
Length of Service
The modal length of service in the cinema sector is found to be 1 to 5 years. Same is further
explained by an average young working population
It is to be noted that the number of years of service of employees in the present employment
align with the years of service in the actual grade in the cinema industry, implying that
employees did not have any change in grade since their date of appointment.
Number of employees deriving a basic wage of less than Rs 6,500
According to the employers interviewed, 19.2% of employees derive a monthly basic salary of
less than Rs 6,500 as at June 2015.
Based on the sample conducted, 5 employees derive a basic salary of less than Rs 6,500, which
represent 19.2% of their total employment which in effect corroborate the figure estimated by
the employers.
Level of agreement with the minimum wage of Rs 6,500 per month
To a question put to employers as to whether they are agreeable that a minimum wage of Rs
6,500 per month be fixed to the lowest paid category, 75% of the sample is agreeable with
same while 25% is not agreeable [representing one employer]. The only justification given by
the employer is that cinema is a seasonal business hence it may not sustain the increase in
monthly basic wage. While other employers do acknowledge that a minimum wage would help
meet basic living expenses related to the purchase of vital products which are getting more and
more costly day by day coupled with the overall increase in the cost of living.
16
Analysis of Salary
In order to analyse the actual basic salary of employees in the Cinema sector, basic salaries of
the different categories of workers have been computed and averaged accordingly with respect
to years of service as in the table below.
Category
of
Average Actual
Over/ Under
Average Monthly
Valuation with
Earnings
(Rs)
(Rs)
Projectionist
6,666
-431
25,791
11,360
5,131
11,360
Ticket Controller
6,214
-15
21,484
Caf Keeper
7,485
1,256
17,812
Cleaner
6,467
577
6,467
*Others
8,500
8,500
Average Total
7,782
1,304
15,236
Workers
On average, the monthly basic salary of employees in the cinema industry amounts to Rs 7,782.
When compared to the basic wages prescribed in the present Remuneration Regulations, it is
found that employees in this sector are deriving more on average by Rs 1,304. However, certain
categories of employees such as projectionist tend to derive a monthly basic salary which falls
below that prescribed by an average Rs 431. Further, ticket controllers are found to face an
undervaluation in their present basic salary by Rs 15 on average.
Moreover, employees in this sector tend to earn much more than what they are deriving as
monthly basic salary. Average earnings in this sector amount to Rs 15,236, with projectionists
being the highest remunerated category of workers and cleaners the least remunerated.
17
Earnings
Multiple factors contribute to the earnings of employees in this particular sector. The major
component consists of the amount earned from additional shows above 28 shows per month.
The rate stated by projectionists interviewed is Rs 331.07 for each additional show above 28
shows same is quite insignificantly below the prescribed rate of Rs 337.13. The rates revealed
by ticket controller and caf keeper surveyed align with the rates prescribed in the present
Remuneration Regulation.
Moreover, on average the number of additional shows above 28 shows is 62 shows a month
and average additional earnings received by employees for a month amounts to Rs 16,628.
18
PROPOSED WAGES
Cinema Workers Remuneration Regulations
Category of employees
Driver
Store assistant
Caretaker/ Cleaner
Cleaner
Helper
PART I
Monthly basic
wage (Rs)
9,367
8,665
8,665
7,623
7,663
PART II
Category of employees
Projectionist
Assistant projectionist
Box office attendant
Ticket controller
Usher
Caf Keeper
Caf Assistant
For up to 28
shows per month
(Rs)
9,164
8,065
7,962
7,962
7,962
7,962
6,500
19
Rate per
additional
show above 28
shows, per
month and for
casual workers
(Rs Cs)
415.75
336.09
328.15
328.15
328.15
328.15
230.01
Annex B
Wage Review
of
Domestic Workers
(Remuneration Order)
Regulations 2010
20
21
Economic Analysis
Compensation of employees
The National Accounts Unit of Statistics Mauritius defines the Compensation of employees as
comprising of all payments of wages and salaries by producers to their employees. Payments in
kind and contributions to social security and to private pension fund, casualty insurance and
1600
1400
1200
1000
800
600
400
200
0
2009
2010
2011
2012
2013
2014
Years
57
56.5
56
55.5
55
54.5
2009
2010
2011
2012
2013
Years
Compensation of employees increased from Rs 892 Mn to Rs 1,497 Mn for the period of 2007 to
2014. From the period of 2007 to 2011, compensation of employees as a percentage of value
added was unstable as shown in the graph above whereby it stood at 56.3% in 2009 and rose at
56.7% in 2010 and fell to 55.3% in 2013 and finally reached 56 % in 2014.
22
2014
Share of GDP
Gross Domestic Product is the sum of value added of all domestically produced goods and
services. It represents the aggregate money value of all goods and services produced within a
country out of economic activity during a specified period, usually a year, before provision for
the consumption of fixed capital. GDP at basic prices is obtained as the difference between
output and intermediate consumption whereby output is valued at basic prices and
intermediate consumption at purchasers price. The figures below indicate the share of GDP of
0.9
3000
0.8
2500
0.7
Share in GDP (%)
2000
1500
1000
500
0.6
0.5
0.4
0.3
0.2
0.1
0
2008 2009 2010 2011 2012 2013 2014 2015
0
2009
2010
2011
2012
2013
2014
Years
Years
23
domestic workers by households due to the fact that many people have embarked in work
schedule that draw them highly busy.
8
7
6
5
4
3
2
1
0
2009
-1
2010
2011
2012
2013
2014
-2
Years
24
PROPOSED WAGES
Domestic Workers Remuneration Regulations
Category of
employees
Cook
Driver
Gardener
Garde-malade
Household worker
Watchperson
Household
Worker/Cook
Caretaker
Monthly
basic wage
(Rs)
6,708
8,759
7,517
7,641
6,500
8,065
Hourly basic
rate (Rs cs)
7,095
7,517
34.11
36.14
32.25
42.11
36.14
24.49
31.25
25.85
25
Annex C
Wage Review in
Export Enterprises
(Remuneration Order)
Regulations 1984
26
In the past, the working conditions were much harsher where typical working hours were as
long as 12 to 18 hours per day with forced unpaid overtime that pushed workers actual
earnings well below the poverty level. All these appear to have tarnished the reputation of this
sector.
The success of EOE has been such that they have absorbed the labour surplus; indeed there is
now a labour shortage in the island and several enterprises have resorted to migrant labour to
expand production and at the same time to benefit from cheap labour costs. One of the
governments economic successes in the late 1980s was job creation, largely through the
growth of EOE enterprises. Between 1983 and 1989, total employment rose by 55 percent.
Employment rose to 16,000 per year between 1985 and 1988, but only by 3,500 annually in the
1988 to 1992 period. The rapid creation of manufacturing jobs has created labour shortages in
the agricultural and manufacturing sectors; as a result, foreign workers have been brought in by
some employers. As it enters the stage of becoming a newly industrialised country, Mauritius
needs to use its labour force more effectively, shifting workers from less productive to more
productive sectors. This transition requires the government to promote labour mobility, as well
as greater technological skills and training.
Source:
A study of labour shortage in manufacturing sector of Mauritius - www.hrdc.mu
28
Economic Analysis
Compensation of Employees
Statistics Mauritius defines the Compensation of employees as comprising of all payments of
wages and salaries by producers to their employees. Payments in kind and contributions to
social security and to private pension fund, casualty insurance and similar schemes are also
included.
29
Share of GDP
The chart below indicates the share of GDP of the EOE sector in Mauritius over the period 2007
to 2014.
30
31
Factual Analysis
To conduct the wage review in the Export Enterprise R.O Regulations, surveys have been
scheduled in 13 establishments and 537 employees were interviewed by job category.
Operators in this sector generally have recourse to foreigners to work on the production floor
but for the purpose of this survey, emphasis was laid on the interview of employees of
Mauritian origin. 537 employees from these 13 establishments were interviewed. The selection
of the interviewees was made to cater for employees in different job categories, reckoning
varying years of service and gender differences. An average of 17.6% of employees was
interviewed out of total employment in the establishment subject to their availability.
Employers
The sample of operators constitutes of 3 establishments which have started operations in the
1970s, 6 establishments set up in the 1980s and 2 establishments undertaking production since
the 1990s and the remaining 2 in 2000 and thereafter.
The normal operating hours vary between 7hrs and 18hrs30 with one exceptional operator
running 24 hrs. The hours of operation for the remaining 11 establishments vary between 8
hours 45 minutes (E8) and 10 hours 30 minutes (E4) with the earliest time of daily operation
being 7.15 a.m. and closure of operations being 6.30 p.m. at latest.
Employees
The technical team has been able to gather information from employees working in 34 different
job categories.
32
Employment
Permanent employment
Employment
Permanent
Contractual
Total
Full time
530 (98.7%)
5 (0.9%)
535 (99.6%)
Part time
2 (0.4%)
2 (0.4%)
Total
532 (99.1%)
5 (0.9%)
537 (100.0%)
Employees have been questioned on their employment status. The proportion of employees in
permanent full time employment out of the total employment is 98.7%. Part time employment
on a permanent basis is held by 2 workers who work as cleaner and helper.
Contractual employment
The team hardly came across employees on short term contracts in this sector. The percentage
of contractual employment out of total employment is 0.9%.Workers who work on contractual
basis are basically newly employed with 3 months of service or less. These workers work as
cleaner, storekeeper, and clerk.
Gender distribution
190 (35.4%) of the 537 employees are male and 347 (64.6%) are female. In our sample, it has
been gathered that there are certain job categories which are basically male dominated. The
following is a list of some job categories which are male dominated: driver, storekeeper,
watchperson, mechanic, electrician and foreman. Though nowadays women are empowered to
promote gender equality yet there are still some jobs which are preferably offered to women
than to men, for example, factory worker. From information gathered from field investigation,
it can be concluded that the Export Enterprises sector is female dominated.
33
yr
s
ab
ov
e
65
yr
s
51
to
65
yr
s
41
to
50
yr
s
40
to
31
18
to
30
yr
s
18
yr
s
E
m
p
l
o
y
e
e
s
200
180
160
140
120
100
80
60
40
20
0
th
an
O
f
le
ss
N
u
m
b
e
r
From the sample of employees, no one belongs to the age group of less than 18 years of age.
The majority, to be more specific, 33.1% (178) is from the age group of 41 years to 50 years and
31.3% (168) are from the age group of 51 years to 65 years of age. Only a minimal, 0.4% (2)
working in this sector is above the age of 65 years, while one employee is from E6 and the other
is from E13. Physical strength and good health are prerequisites in this sector. The remaining
20.9% (112) of the interviewees belong to the age group of 31 years to 40 years and only 14.3%
(77) are between the ages of 18 years to 30 years.
Young people are less willing to adopt a job in this sector. Most probably, they prefer white
collar jobs due to their relatively higher level of education. It is worth noting that an important
number of people still consider to work after the age of 60 years probably because of family
responsibilities and the increase in cost of living.
34
28
35
1 to 4 years
84
115
5 to 8 years
85
106
9 to 12 years
96
103
13 to 16 years
59
59
17 to 20 years
52
40
21 to 24 years
42
24
25 to 28 years
54
34
29 to 32 years
28
15
33 to 36 years
37 to 40 years
41 to 45 years
537
537
Total
It can be seen from the above table that 17.9% of the interviewees have between 9 to 12 years
of service in the same establishment. There are 3 among the sampled employees who have
worked for more than 40 years in the same establishment. There are many employees whose
actual number of years of service with the employer differs from their number of years of
service in their actual position. The information is depicted in the above table shows that they
have been promoted or have had a change in job within the establishment after certain number
of years of service to a higher responsibility post. Most of the employees interviewed have
either been promoted to a higher post or have shifted to a different post.
Promotion as well as salary can be a very powerful device to motivate employees in an
establishment. Scope for promotion is difficult in this sector as each job category requires
different skills and aptitudes. Many employees in this sector state that they are not well
remunerated for the number of hours that they work. Employees have long working hours and
35
the nature of work is tedious. But many interviewees confirm that they are compelled to do the
overtime as this is the only way to increase their earnings in order to make both ends meet.
Number of employees deriving a basic wage less than Rs 6,500 per month
From information gathered in sampled establishments, 75.7% of the mass of employees are
remunerated with a basic wage of less than Rs 6,500 per month.
A total of 16,566 employees are paid a monthly basic wage not exceeding Rs 6,500 in the above
13 establishments covered by the survey. It worth mentioning that, one employer pays all
production floor employees a monthly basic wage of less than Rs 6,500.
Level of agreement with minimum wage of Rs 6,500 per month to be fixed
All employers sampled unanimously claim not to be agreeable to the setting of a wage floor of
Rs 6,500. The reasons stated for adopting such a stand are as follows:
Labour costs are already very high
The establishment may lose competitiveness in the sector, especially with respect to
importers of similar products. The establishment may lose competitiveness in the world
market if the cost of production is higher than that of other countries.
The increase in wage may threaten employment in the sector. Moreover the situation will
not encourage employers to recruit and train the work force as they will tend to recruit only
experienced and trained labour force.
The fixation of minimum wage entails additional costs to the employer including higher
overtime payment and end of year bonus. Export enterprises rely on foreign orders and an
important order entails overtime work among floor workers.
The sector is labour intensive; hence any increase in labour cost has a direct and significant
repercussion on total costs and profitability of the company.
36
Analysis of wages
To analyse the level of prevailing basic wage among sampled employees in the selected
establishments covered by Export Enterprises Remuneration Regulations, current basic wages
of employees have been compiled and averaged as in the table below.
Components of earnings
Monthly earnings comprise of basic wages, overtime payments and other bonuses and
allowances including the attendance bonus. Field investigation confirms that employees rely on
overtime duties performed to benefit from extra payment. Some even confided that they rely
on meal allowances to boost up their earnings that cover their household expenses.
Category of
workers
Accounts Clerk
Storekeeper
Clerk
Foreman
Timekeeper
Telephonist
Receptionist
Mechanic
Electrician
Driver Grade 1
Driver Grade 2
Driver Grade 3
Watchman
Factory Worker
Unskilled Worker
Others
Average
Average
basic wage
Average
monthly
earnings
basic wage/
monthly
earnings*100
Monthly
12320.70
9961.67
8487.73
9443.81
9700.00
8050.00
9704.13
9492.27
11028.57
8937.50
9833.33
8414.29
7728.02
5659.25
5451.64
11829.10
13638.20
11856.06
10578.53
13939.31
10000.00
9062.50
12015.38
14122.82
17385.71
18546.25
13083.33
11942.86
12128.09
8397.66
7662.02
16156.40
90.3
84.0
80.2
67.7
97.0
88.8
80.8
67.2
63.4
48.2
75.2
70.5
63.7
67.4
71.2
73.2
9127.625417
12532.195
74.3042274428
37
PROPOSED WAGES
Export Enterprises Remuneration Regulations
PART I
Monthly
wage (Rs)
Category of worker
Years of service
Chief Clerk
1st year
2nd year
3rd year
4th year
5th year & thereafter
9,119
9,324
9,515
9,733
9,905
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year & thereafter
8,670
8,848
9,042
9,186
9,336
9,504
9,665
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year & thereafter
7,499
7,787
8,049
8,485
8,748
8,919
9,076
9,242
9,386
1st year
2nd year
3rd year
4th year
5th year & thereafter
7,570
7,894
8,237
8,451
8,596
38
Telephonist, Receptionist
Mechanic, Electrician
1st year
2nd year
3rd year & thereafter
7,570
7,894
8,237
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year & thereafter
7,499
7,787
8,049
8,356
8,485
8,650
8,748
8,840
8,919
Driver Grade 1
Driver Grade 2
Driver Grade 3
8,852
8,675
8,521
PART II
Category of worker
Weekly
Wages
(Rs Cs)
1,603.30
Monthly
Wages
(Rs)
6,948
1st year
1,402.73
6,078
Thereafter
1,427.19
6,184
1st year
1,315.41
5,700
Thereafter
1,377.40
5,969
Years of service
Watchperson
Factory Worker
Unskilled Worker
Annex D
Wage Review of
Factory Employees
(Remuneration Order)
Regulations 2001
40
This sector has created employment since the 1970s. Mauritius, having a pool of unskilled but
yet educated labour, provided an adaptable workforce for the manufacturing sector. However,
this workforce has gradually become more expensive and could not produce as much as
expected by industrialists to meet the challenges of the world market. In the 1990s, producers
began to turn to foreign workers from China, India and other Far East Asian countries. These
workers were considered more productive as they worked longer hours and were paid the
same as local workers. In 2004, it was estimated that around 15,000 foreign workers were
working in the textile and clothing segment.
The manufacturing sector in Mauritius has successfully diversified into new products such as
jewelry, watch parts and complex medical devices, with shipments of manufactured goods
excluding the traditional agro-products, textiles and garments having gone up by a healthy
36% to Rs 8.3 billion over just four years from 2009 to 2013.
According to an in-depth study by The Africa Report, Mauritian entrepreneurs are no longer
content with merely canning tuna and spinning yarn, but there is a renewed thrust on producing
high-end goods ranging from watch parts to complex medical devices.
41
Researchers believes a strong performance by the financial sector coupled with the emergence
of Seafood exports as an important pillar of the economy will drive growth in the
manufacturing sector and continue to support economic growth in the years to come.
After three straight years of declining growth rates, in 2012, the manufacturing sectors growth
rate improved by 1.5%. The emergence of fish processing as a new high growth business,
propelled food manufacturing which almost singlehandedly boosted manufacturing growth in
real terms.
http://africamoney.info/mauritius-manufacturers-increase-scope-of-ambitions-broadenmanufacturing-base/ (Accessed: August 2015)
42
Economic Analysis
Due to the complexity of the sector, Statistics Mauritius has not been able to provide exclusive
data on the economic aspects of this sector which we understand have not yet been compiled
as at date.
However, the Board has been able to gather first hand information from the survey conducted
on this sector which has a very significant contribution in the Mauritian economy be it in terms
of revenue and employment of its people.
43
Factual Analysis
To conduct the wage review in the Factory Employees Remuneration Regulations, surveys have
been scheduled in 26 establishments and 844 employees were interviewed by job category.
Sample
Employer
The sample covered operators engaging in the production/manufacture of poultry, margarine,
alcoholic/non alcoholic drinks, building materials, cosmetics, detergents, fertilizers, anti-theft
and other electronic devices, jewelry, soap, metal items, dairy products just to name a few.
Employee
The technical team has been able to gather information from employees working in different
job categories; while 11 job categories are covered by the present Remuneration Regulations,
the remaining job categories are not.
Category of workers
Number
Chief Clerk
Accounts Clerk
23
Storekeeper
29
Clerk
49
Assistant Storekeeper
18
Telephonist, Receptionist
18
Foreman, Forewoman
59
Factory Operator
234
Factory Attendant
176
Unskilled Worker
161
Watchman
Others
67
Total
844
44
Employment
Permanent employment
Employment
Permanent
Contractual
Total
Full time
Part time
825 (97.7%)
_
19 (2.3%)
_
844 (100.0%)
_
Total
825 (97.7%)
19 (2.3%)
844 (100.0%)
Employees have been questioned on their employment status. The proportion of employees in
permanent full time employment out of total employment is 97.7%. There are no part time
employees among those under a permanent employment.
Contractual employment
The team hardly came across employees employed on short term contracts in this sector. The
percentage of contractual employment out of total employment is 2.3%. These workers work as
factory attendants, factory operators, and unskilled workers.
Among the 844 employees interviewed in sampled establishments covered by the Factory
Employees Remuneration Regulations, 21 are employed on a contractual basis.
From the sample, employees employed on a contractual basis are: 5 Unskilled Workers, 8
Factory Attendants, 6 Factory Operators, 1 Clerk and 1 Planning Coordinator. The job category
of these employees is not covered by the Factory Employees Remuneration Regulations.
Average duration of contract of employment
From the 21 employees employed on a contractual basis, 11 are at their first, 9 employees are
at their second and 1 employee is at his third contract of employment.
From the 21 employees, one third state that the average duration of contract of employment is
3 years.
45
Gender distribution
589 (69.8%) of the 844 employees are male and 255 (30.2%) are female. In the sample, it has
been observed that there are certain job categories which are basically male dominated. The
following is a list of some job categories which are male dominated: factory operator, foreman,
watchperson, factory attendant. From information gathered from field investigation, it can be
concluded that the Factory Employees sector is male dominated.
46
Age distribution
From the sample of 844 employees, only 0.1% (1) employee is less than 18 years. He/she is an
apprentice at the particular establishment. 18.5% (156) of the employees are from the age
group of 18 to 30 years, 24.3% (205) are from 31 to 40 years, 26.2% (221) are from 41 to 50
years, 29.6% (250) are from 51 to 65 years and 1.1% (9) are aged above 65 years. Response
could not be gathered from 0.2% (2) regarding the question of which age group they belong to.
Results show that the majority of employees in this sector belong to the age group of 51-65
years and it is employees in this age group who are sustaining the sector. Should employees in
this age group retire, relief would be difficult with the departure of skilled, experienced labour
force. The least number of employees is from the age group of less than 18 years. This may be
due to the fact that youngsters tend to pursue high level of education in order to secure their
future rather than leave their education at an early stage to start working.
It can be said that as far as the scope for promotion is concerned, this depends largely on the
size of the establishment and number of employees working in. If the establishment operates
with a very small number of employees working, the latter tend to stagnate in the same post for
years and years. Contractual part-time work appears to be almost inexistent in this sector.
47
Out of the 26 establishments surveyed, 14 claim that they do not have any employee deriving a
monthly basic wage of less than Rs 6,500.
Level of agreement with the minimum wage of Rs 6,500
To a question put to employers as to whether they are agreeable with the minimum wage of Rs
6,500, 19 employees (73.1%) of the sample are agreeable while the remaining 7 employers
(26.9%) are not agreeable to same. The reasons stated for such agreement are as follows:
Employer is already paying more than the minimum wage proposed
For decent living an employee needs at least Rs 7,500 as a monthly basic wage
To ensure a better living standard
Rs 6,500 is not an exaggerated sum
On the other hand, employers tend to disagree with an increase in wages to Rs 6,500 because
of the following reasons:
Difficult situation since there is increasing competition while the size of the market is same
Appreciating foreign currency is not in favour of employer
Stagnant turnover coupled with the fall in purchasing power of customers
Lack of potential new recruits for employment and lack of commitment from youngsters
Employer has to face too much absenteeism.
The sector is highly labour intensive, much reliance is laid on employees to manufacture
There is fierce competition in the manufacturing sector coupled with significant shortage of
experienced labour force
Higher salary should be productivity linked
48
Analysis of Salary
In order to analyse salary of factory employees, the actual monthly basic wage of the different
categories of workers comprising of their monthly wage, daily wage on 5 and 6- day week have
been averaged and computed with respect to the years of service.
Accordingly, it can be found that on average, employees in this sector receive a basic wage
above those prevailing as per the Remuneration Regulations. 16.1% of the employees surveyed
state to be satisfied with their present basic wage while the remaining 83.9% of employees are
not. The reasons given to justify such dissatisfaction are:
High costs of living
Poor conditions of work, leading to health problems
Salary should be commensurate with length of service
Heavy workload
Salary is not enough; need to rely on overtime payment to sustain a decent living at the
detriment of ones social and family life
High responsibility level assigned at the workplace
Work is physically demanding
Employee is indebted, he has to repay loan
Moreover, employees in this sector receive on average monthly earnings of Rs 15342. Monthly
earnings are composed of factors detailed in the table below.
Details
Average
Range
No. of employees
earning
No. of employees
not earning
Overtime
Payment in
a month
Rs 2,280
Rs 40 to
12,000
308
Meal
Allowance
Attendance
Bonus
Production
Bonus
Others
Rs 644
Rs 70 to
1,820
71
Rs 560
Rs 50 to
3,500
625
Rs 1,254
Rs 80 to
6,000
108
Rs 1,192
Rs 22 to
10,000
225
536
773
219
736
619
49
It is to be noted that others comprise of allowance paid to employees and they are namely;
Acting allowance
Cleaning allowance
Checking allowance
Cold room allowance
Risk allowance
Early arrival allowance
Laundry allowance
Incentive bonus
Night shift allowance
50
The employers sampled are in favour of an increase in the basic wage of employees in the
factory sector. On average they have proposed 18.5% increase in basic wage. The highest
increase has been proposed for the category of worker accounts clerk and the lowest increase
for factory attendant. On the other hand, workers have proposed an increase by 66%.
51
PROPOSED WAGES
Factory Employees Remuneration Regulations
PART I
Category of employee
Chief clerk
Clerk, Assistant
Storekeeper
Monthly
Wage (Rs)
Year of service
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8 &
thereafter
11,230
11,455
11,692
11,971
12,185
12,486
12,733
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8 &
thereafter
10,170
10,436
10,693
10,908
11,122
11,348
11,574
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8 &
thereafter
9,175
9,344
9,528
9,757
9,973
10,225
10,543
Year1
Year2
Year3
Year4
Year5
Year6
8,877
9,054
9,230
9,447
9,665
9,898
12,990
11,820
10,843
52
Telephonist, Receptionist
Foreman, Forewoman
Year7
Year8 &
thereafter
10,125
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8 &
thereafter
8,646
8,822
8,999
9,208
9,424
9,643
9,876
10,414
10,049
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8 &
thereafter
8,646
8,822
8,999
9,208
9,424
9,643
9,854
10,049
PART II
Category of employee
Factory Operator
Factory Attendant
Monthly
Monthly
wage for
wage for an
an
employee
employee
on a 5-day
on a 6week
day week
(Rs)
(Rs)
8,124
8,018
8,213
8,105
8,297
8,188
8,379
8,269
8,474
8,362
8,548
8,435
8,619
8,505
Daily wage
for an
employee
on a 5-day
week
(Rs cs)
Daily wage
for an
employee on
a 6-day week
(Rs cs)
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year8 &
thereafter
369.29
373.31
377.13
380.88
385.18
388.54
391.76
308.38
311.74
314.92
318.04
321.62
324.42
327.11
395.10
329.89
8,692
8,577
Year1
351.11
293.23
7,724
7,624
Year of service
53
Unskilled Worker
Year2
Year3
Year4
Year5
Year6
Year7
Year8 &
thereafter
355.20
359.22
363.96
367.92
371.98
375.83
296.65
299.99
303.94
307.25
310.63
313.83
7,814
7,903
8,007
8,094
8,184
8,268
7,713
7,800
7,902
7,989
8,076
8,160
379.61
316.99
8,351
8,242
Year 1
Year 2
Year 3
Year 4
Year 5 &
thereafter
299.24
303.15
308.87
312.75
250.00
253.26
258.03
261.26
6,583
6,669
6,795
6,881
6,500
6,585
6,709
6,793
316.43
264.33
6,961
6,873
Watchperson
334.61
54
8,700
Annex E
Wage Review in
Light Metal and
Wooden Furniture
Workshops
(Remuneration Order)
Regulations 2002
55
56
Economic Analysis
Compensation of Employees
Share of GDP
The figures below indicate the share of GDP of the Light Metal and Wooden Furniture sector in
Mauritius over the period 2007 to 2014.
57
58
further to be noted that this sector holds an insignificant share of GDP over the period 2007 to
2014.
The following chart illustrates the real growth rate of the sector over the period 2007 to 2013.
The real growth rate refers to changes in GDP pertaining to the sector of the sector over years
after necessary adjustments have been made to changes in price level, ceteris paribus.
59
PROPOSED WAGES
Light Metal and Wooden Furniture Workshops (Remuneration Order) Regulations
PART I
Category of employee
Year of service
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year &
thereafter
Monthly
basic wages
(Rs)
10,131
10,336
10,496
10,657
10,888
11,108
11,338
11,624
Clerk
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year &
thereafter
9,615
9,838
9,991
10,153
10,432
10,657
10,882
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year &
thereafter
9,257
9,421
9,572
9,737
10,013
10,292
10,517
1st year
2nd year
8,367
8,532
11,097
10,743
Receptionist/Telephonist
60
3rd year
4th year
5th year
6th year
7th year
8th year &
thereafter
8,687
8,841
9,085
9,324
9,550
9,838
PART II
Category of employee
Year of service
Daily basic
wages
(Rs cs)
Monthly
basic
wages
(Rs)
395.84
398.30
400.38
402.45
10,292
10,356
10,410
10,464
404.50
10,517
Grade I
(Rs cs)
378.39
380.54
382.65
384.74
Grade II
(Rs cs)
349.82
352.47
354.74
356.93
Grade
III
(Rs cs)
323.93
326.46
328.61
330.74
386.78
359.01
332.85
Year of Service
1st year
2nd year
3rd year
4th year
5th year &
thereafter
9,838
9,095
8,422
2nd year
3rd year
4th year
5th year &
thereafter
Apprentice
1st year
2nd year
3rd year
4th year
5th year
Category
Year of service
9,894
9,949
10,003
9,164
9,223
9,280
10,056
9,334
Daily basic
wages
(Rs cs)
250.00
259.00
267.89
276.94
286.89
Monthly
basic
wages
(Rs)
6,500
6,734
6,965
7,200
7,459
8,488
8,544
8,599
8,654
Driver
1st year
2nd year
3rd year
4th year
5th year &
thereafter
9,659
9,715
9,770
9,883
9,410
9,465
9,518
9,572
9,148
9,205
9,262
9,319
9,938
9,626
9,383
1st year
2nd year
3rd year
4th year &
thereafter
8,422
8,488
8,544
Lorry helper
Attendant
1st year
2nd year
3rd year
4th year &
thereafter
62
8,599
Daily basic
wages
(Rs cs)
307.89
310.15
312.50
Monthly
basic
wages
(Rs)
8,005
8,064
8,125
314.58
8,179
Watchperson
1st year
2nd year
3rd year
4th year &
thereafter
63
320.54
322.66
324.82
8,334
8,389
8,445
327.34
8,511
Annex F
Wage Review
in
Nursing Homes
(Remuneration Order)
Regulations 1983
64
65
Long waiting time, unprofessional attitude of some staff members, poor hygiene conditions are
often cited for choosing a private clinic over public hospitals.
66
Economic Analysis
Compensation of Employees in Nursing Homes
The National Accounts Unit of Statistics Mauritius defines the Compensation of employees as
comprising of all payments of wages and salaries by producers to their employees. Payments in
kind and contributions to social security and to private pension fund, casualty insurance and
similar schemes are also included. According to Statistics Mauritius, Nursing Homes in Mauritius
comprise of different types of entities, namely clinics, firms providing other health activities
and organisation undertaking social work with accommodation.
From the charts, the compensation of employees increased over the years for the three
'groups', more specifically, for clinics from Rs 483 Mn to Rs 945 Mn, other health activities from
Rs 84 Mn to Rs 241 Mn and social work with accommodation from Rs 32 Mn to Rs 54 Mn for
the period of 2009 to 2014. However, compensation of employees as a percentage of value
added for the period 2009 to 2014 remain constant for the 3 'groups' with 69.0 % for clinics,
84.0 % for other health activities and 17.0 % for social work with accommodation.
67
68
Over the period 2009 to 2014, value added of the different composition of nursing homes have
been continuously rising, whereby the highest contribution of value added being that from
clinics from Rs 700 Mn to Rs 1,370 Mn. However, the share of GDP from nursing homes is very
insignificant. On average, for the period 2009 to 2014, the share of GDP of clinics was on
average 0.4%, while that of other health activities was an average of 0.1% and that of social
work with accommodation was constantly at 0.1%.
The real growth rate of Nursing Homes, which is growth rate in monetary terms after necessary
adjustments have been made to changes in the price level, is illustrated in the following graph.
69
The real growth rate of other health activities rose from 18.8% in 2009 to 24.6% in 2011 but
fell to 14.8% in 2012 whereby stagnating at the same rate in 2013 and to 10% in 2014. As for
social work with accommodation, real growth rate increased from 8.3% in 2009 to 14.0% in
2011, while it fell to 1.7% in 2012 and stagnated in 2013 and 2014.
Factual Analysis
In order to determine minimum wage of employees in the nursing home sector, field
investigations have been carried out in a sample of 5 related establishments. The sample
selected is multivariable, comprising of different sizes as well as distinct number of employees.
Furthermore, in order to ensure fairness in the analysis exercise, survey has been carried out
with the employees in different job categories.
70
Age Distribution
The average age group of employees is 31 to 40 years, as illustrated in the chart below.
71
72
Analysis on Salary
It is found that on average, the monthly basic salary is Rs 13,757. Same represents an
overvaluation of monthly basic salary by Rs 5,809 compared to that prescribed in the
Remuneration Regulations. The highest monthly basic salary amounting to Rs 27,575 is
observed to be paid to charge nurses or ward sisters, while launderers are found to be least
paid with a monthly basic salary of Rs 8,400 in this sector. Moreover, the average monthly
earnings to be found in this sector according to the employees surveyed amount to Rs 15,040.
Accordingly, the medical laboratory technicians are found to be earning the highest income of
Rs 31,550 and lowest income is earned by nursing home attendants amounting to Rs 8,503.
Monthly earnings are comprised of overtime payments, and other allowances, a breakdown of
same is given below.
Details
Overtime
Meal
Night Shift
Other
Payment
Allowance in a
Allowance in a
allowances
In a month
month
month
earned during a
month
Average
Range
Rs 1,807
Rs 472
Rs 2,438
Rs 1,452
Rs 200 to Rs
Rs 40 to Rs 700
Rs 200 to 4,000
Rs 200 to Rs
7,500
No. of employees
4,800
47
74
46
112
85
150
113
earning
No. of employees
not earning
73
74
PROPOSED WAGES
Nursing Homes (remuneration Order) Regulations
Category of worker
PART A
Year of service
Monthly salary
(Rs)
11,718
10,608
10,725
10,875
11,042
11,230
1st year
2nd year
3rd year
4th year
5th year & thereafter
10,608
10,725
10,875
11,015
11,176
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year & thereafter
9,494
9,624
9,731
9,923
10,107
10,355
10,608
10,779
10,988
11,176
1st year
2nd year
3rd year
4th year
5th year & thereafter
8,545
8,695
8,823
9,005
9,217
1st year
8,072
Radiographer
Nurse
Dispenser
Assistant Nurse
75
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year & thereafter
8,250
8,400
8,545
8,695
8,889
9,068
9,275
9,494
9,678
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year & thereafter
8,367
8,512
8,655
8,793
8,917
9,097
9,303
9,521
9,705
9,950
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year & thereafter
6,855
6,995
7,170
7,669
8,072
8,326
8,545
8,757
8,945
9,137
Midwife
Nursing Aid
Category of worker
PART B
Year of service
Monthly salary
(Rs)
8,545
Driver
Cook
1st year
2nd year
3rd year & thereafter
8,072
8,250
8,479
76
Receptionist
1st year
2nd year
3rd year & thereafter
7,964
8,176
8,326
6,500
6,774
7,055
7,248
7,485
Gardener
7,667
Kitchen Help
1st year
2nd year
3rd year & thereafter
6,500
6,855
7,327
Watchperson
7,829
Handyperson
9,068
77
Annex G
Wage Review
of
Pre-primary School
Employees
(Remuneration Order)
Regulations 2000
78
79
aged 3 to 5 years have to attend pre-primary school, followed by 6 years of compulsory primary
schooling starting at the age of 5.
Economic Analysis
Compensation of Employees in Pre Primary Schools
The National Accounts Unit of Statistics Mauritius defines the Compensation of employees as
comprising of all payments of wages and salaries by producers to their employees. Payments in
kind and contributions to social security and to private pension fund, casualty insurance and
similar schemes are also included.
80
81
The value added of Pre Primary Schools (private) has been continuously rising over the period
2009 to 2012, staying stable for the period 2013 and 2014. Same was at Rs 259 Mn in 2009 and
grew up to Rs 362 Mn in 2014. The share of GDP of the sector is very insignificant. On average,
the share of GDP remained at 0.1% over the same period.
82
The minimum normal operating hours for pre-primary schools in sampled establishments is 5
hours and the maximum is 9 hours. Generally school starts at 9 hours in the morning but
employees may be required to start work as from 8.30 hours. Some rare schools welcome
students as from 7.30 hours, thus allowing flexibility to parents who need to drop their children
early in the morning before going at their place of work. Operating hours vary between 7.30
and 16.00.
The number of employees varied between 2 and 72 with an average of 16 for the operators
who participated in the survey exercise.
The pre-primary sector is a sector principally composed of female personnel. At almost all
levels, female employment is favoured over male employment, be it teacher, cook or school
attendant. The responsibilities at these establishments call for prompt action on the part of all
employees. Employees may be required to accompany children to the washroom or help
children with their meals. Members of the personnel may be called upon to assist a child in
case the latter is unwell.
Age Distribution of interviewed employees
Total
Age group
Less than 18 years
18 to 30 years
31 to 40 years
41 to 50 years
51 to 65 years
Above 65 years
Total number of
interviewed
employees
Of whom
Single
Married
Otherwise
1
53
64
44
35
2
199
29
141
29
83
Contractual
Total
Full time
Part time
Full time
Part time
181
13
199
Full time permanent employment constitutes of 91% of total employment (188). Contractual
employment is not very common in this sector. Those employed on a contractual mode are
trainee teachers who generally have yet to prove their competence before being employed on
a permanent basis. Among those employed on a part time mode are cleaners, helpers,
gardeners and maintenance officers.
Length of service in present employment and in actual grade/position
46 of the 199 (23.12%) interviewees claim to have benefitted from a change in job category or a
promotion from one grade to another within the same establishment. This sector provides little
scope for promotion for the different job categories except for the category of teacher. The
present Remuneration Regulations cater for the post of teacher supervisor, teacher Grades A, B
and C. Information gathered during the survey confirms the fact that employees may be
recruited as trainee teachers but may subsequently promoted to the post of assistant teacher,
then teacher in the different grades and eventually to teacher supervisor.
Job category
Teacher Supervisor
Teacher (Grade B)
Teacher (Grade A)
Teacher (Grade C)
Trainee teacher
School attendant
Cook
No. of employees
interviewed
3
56
41
25
7
46
8
84
Job category
Teacher Supervisor
Assistant cook
Assistant teacher
Handyperson
Driver
Total
No. of employees
interviewed
3
1
6
5
1
199
The average actual monthly basic wage pertaining to the preprimary schools is found to be Rs
8,776.51. Further observations concluded the fact that all job categories in the preprimary
schools prevailing in the existing Remuneration Regulations happen to benefit from monthly
basic wages exceeding those prescribed.
Field investigation reveals that 88 of the 199 employees interviewed derive a basic salary of less
than Rs 6,500 (44.22%) as at 2014. It is to be pointed out that among these 88 employees, 55
have prescribed basic wages less than Rs 6500 and 33 have prescribed wages exceeding Rs
6,500.
85
PROPOSED WAGES
Pre-Primary School Employees (Remuneration Order) Regulations
Category of employee
Year of service
Teaching staff
Teacher Supervisor
Monthly basic
wages
(Rs)
9,941
Teacher (Grade A)
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year & thereafter
8,761
8,860
8,976
9,081
9,202
9,312
9,451
9,573
9,711
9,834
1st year
2nd year
3rd year
4th year
5th year & thereafter
8,118
8,227
8,351
8,451
8,552
7,796
8,118
8,403
Teacher (Grade B)
Teacher (Grade C)
7,348
Gardener/Handyperson
6,500
86
School Attendant
1st year
2nd year
3rd year
4th year
5th year & thereafter
87
7,348
7,436
7,525
7,619
7,721
Annex H
Wage Review in
Salt Manufacturing
Industry
(Remuneration Order)
Regulations 1983
88
innovation and economic foresight, same is weighing heavily on the future of this sector.
Imported salt from China at a relatively more competitive price is most likely to threaten the
continuity of this local product, thereby jeopardizing employment in the sector. The SaltManufacturing Industry (Remuneration Order) Regulations 1983 was partially reviewed in
1994.
90
Economic Analysis
Compensation of Employees
91
13
20
11
20
09
20
07
20
2007
2008
2009
2010
2011
2012
2013
2014
0.
01
16
14
12
10
8
6
4
2
0
0.
01
Value added
As per data from Statistics Mauritius, the value added pertaining to the Salt Industry was quite
fluctuating over the period 2007 to 2014. The sector faced downturns in the years 2008 and
2009 where value added for Salt Industry fell by 13.3% and 30.8% respectively. Same rose in
2010 by 22.2% and fell in 2011 by 9.1%. In the year 2012, the sector benefited from a growth of
20% when it reached Rs 12 Mn but continued to fall until 2014 reaching 9 Mn.
Further, the share of GDP is insignificant and converged to zero over the whole period. Same
can be explained by increased restrictions on the exploitation of the seas in Mauritius to extract
salt, which happen to be a sustainable measure.
92
PROPOSED WAGES
Category of
worker
Daily wages
(Rs cs)
Monthly wages
(Rs)
Male worker
271.93
7,070
Female worker
271.93
7,070
Foreman
316.58
8,231
Alimentateur
292.31
7,600
Mason
310.54
8,074
Watchperson
271.93
7,070
Factory Operator
292.31
7,600
93
Annex I
Wage Review
in
Sugar Industry
(Agricultural Workers)
Remuneration Orders
Regulations 1983
94
Trade Organisation (WTO), claiming that the European Unions support policy allows European
countries to illegally export sugar. The ruling was the result of an investigation motivated by
complaints from Brazil, Thailand and Australia, three major sugar producers, who claimed that
EU sugar policy was highly trade distorting and would have to be reevaluated if free trade were
to be achieved. WTO panel and to make the EU sugar sector more compatible with the rest of
the world, the EU Council reformed the sugar industry in 2005. This reform involved a
progressive reduction in export subsidies and a large cut in the intervention price starting in
2006. The implications of an EU sugar regime adjustment have been projected to be a reduction
in the quantity of sugar exported and a fall in the European domestic price of sugar by 36% over
a four cut in 2006, 25% in 2007, 30% in 2008 and 36% cut in 2009.
Since 1975, Mauritius, as a member of the African, Caribbean and Pacific (ACP) group of
countries, has, through the Sugar Protocol annexed to the LOME Convention, been benefiting
from a preferential market access, including a fixed quota and a guaranteed price, for its sugar
export to the European Union.
In view of the reform of the Common Agricultural Policy (CAP) in the EU and the world trade
liberalisation process, Mauritius has engaged into a restructuring program of the sugar industry
since 1984. The implementation of the EU sugar reform leading to a drastic price cut of 36% in
2009 has prompted the stakeholders of the industry to accelerate and deepen this reform.
According to Mauritius Sugar Authority report, reform in the sugar industry is on-going process
since 1859 but to which new impetus was given as from 1984. Competitiveness Improvement
Programmes have been a permanent feature of the sugar industry ever since 1984, when for
the first time Government came up with an overall strategy for the sugar industry. This strategy
was reviewed in 1988 through a major study, the Sugar Industry Efficiency Study which laid
down the framework for action for nearly a decade. The bagasse electricity and the reduction
of oil dependency questions were dealt with in the Bagasse Energy Development Programme
which was formulated in 1991.
Sugar has been traded under the Commonwealth Sugar Agreement since 1951 and under the
Sugar Protocol since 1975. The production of sugar has been encouraged by marketing
96
arrangements with consuming countries (principally Britain), which have guaranteed prices and
markets for the Mauritian crop. Mauritius has made constant efforts to improve and maintain
the economic viability of this industry which has been the very lifeblood of its economy. The
government has acquired a portion of this reliable sugar income through a sugar export tax.
Since 1984 the Mauritius Sugar Authority, operating under the Ministry of Agriculture, has
advised the government regarding sugar policy. In addition, the authority acts as a nexus
between the government and the numerous organisations involved in sugar production. These
organizations include parastatal, producers', and workers' organisations, as well as extension
and research bodies. The private Mauritius Sugar Syndicate, which has offices in London and
Brussels, handles all aspects of domestic and foreign sugar marketing, including transportation,
finance, insurance, and customs duties. The Mauritius Sugar Industry Research Institute
(M.S.I.R.I.) conducts research in such areas as plant breeding, entomology, and food-crop
agronomy.
With the modernisation and restructuring process of the Sugar Industry, the number of sugar
milling factories has been reduced to only four after 2010, compared to seven as at end 2007;
they are namely Omnicane, Terra, Medine and Alteo.
According to Statistics Mauritius, at the end of June 2015, some 4,173 hectares under sugar
cane for crop 2015 were harvested, yielding 352,026 tonnes of sugar cane and 28,780 tonnes of
sugar. The corresponding figures for the same period of 2014 were 4,133 hectares, 319,391
tonnes of sugar cane and 28,583 tonnes of sugar respectively. The average extraction rate as at
end of June 2015 was 8.18% compared to 8.95% as at end of June 2014.
The latest estimate of the Mauritius Chamber of Agriculture for the production of sugar for the
2015 crop is 410,000 tonnes, representing an increase of 2.5% compared to 400,173 tonnes for
2014.
97
Economic Analysis
Compensation of employees
Compensation of
Compensation of
employees
employees as a % of
(Rs Mn)
Value added
2007
1,659
38.3
2008
1,610
38.1
2009
1,395
40
2010
1,251
41
2011
1,320
36.7
2012
1,468
39.7
2013
1,309
40.4
2014
1,272
40.8
98
average, the percentage of compensation to value added of the sector was 39.4% over the
period 2007 to 2014.
Share in Gross Domestic Product
GDP is total currency value of all final goods and services produced in an economy over a period
of time, generally a year.
99
Growth rate
-10
-15
-20
100
In his submission before the Board in relation to the partial review of the present Remuneration
Regulations, the representative of the CTSP made a demand that the collective agreement
signed between JNP and MSPA be extended to the whole of the sector.
Bearing in mind that (i) the majority of workers in this sector are covered by terms and
conditions of the aforesaid collective agreement and (ii) that the number of private cane
growers has drastically shrunk, (iii) the number of workers associated with such cane growers
are quite insignificant as compared to the total number of workers in this sector and (iv) the
said workers are very often employed on a casual basis, the Board accepts the demand made
by the Union.
Taking into consideration the provisions made in Section 20 of the Employment Right Act 2008
as amended and ILO Convention 100 on equal remuneration for work of equal value to which
Mauritius is signatory, the Board invites the Honourable Minister to take any necessary action
he may deem appropriate to cause the collective agreement between JNP and MSPA to be
extended to the whole of the sector.
101
Annex J
Wage Review in
Tea Industry
(Remuneration Order)
Regulations 1984
102
The trainee smallholders completed their training programme in the early eighties. It was only
in 1984, a year marked by booming tea prices that they expressed such concern and that
became possible to lease out the tea plantations to them.
104
105
same period of 2014. The production of green tea leaves went down by 22.4% from 4,498
tonnes in the first semester of 2014 to 3,492 tonnes in the first semester of 2015. This resulted
in a decrease in the production of manufactured tea by 24.8% from 890 tonnes to 669 tonnes.
The Ministry of Agro-industry and Food Security recently announced that measures will be
taken to boost up again this industry through:
(i) an infilling programme to improve output from existing area under tea cultivation.
(ii) the enhancement of the quality of tea manufactured in factories through better control of
the standard of green leaf and the manufacturing process with the aim of obtaining a better
finished product.
(iii) to develop an adequate marketing strategy for the improved product.
107
Economic Analysis
Share of Gross Domestic Product
GDP measures the monetary value of final goods and servicesthat is, those that are bought
by the final userproduced in a country in a given period of time (say a quarter or a year). It
counts all of the output generated within the borders of a country.
14
13
20
12
20
11
20
10
20
09
20
08
20
20
20
07
0.12
0.1
0.08
0.06
0.04
0.02
0
Share in
GDP (%)
The value added from the Tea Industry kept fluctuating over the period 2007 to 2014. In 2008,
value added rose by 14.1% reaching Rs 227 Mn. In 2009, same fell by 10.6% and stood at Rs 203
Mn. The sector revived in 2010, where value added moved up to Rs 213 Mn and kept increasing
up to Rs 236 Mn in 2011. However, the sector faced a downturn in 2012, where value added fell
by 7.6% and reached Rs 218 Mn. From 2013 to 2014, the Tea Industry rejuvenated with an
increase of 10.6% in value added reaching Rs 241 Mn.
Regarding the share of GDP of the sector compared to the economys GDP at basic prices, same
remained constant at 0.1% over the period 2007 to 2014. It is further noted that the industry
holds an insignificant size of the countrys income.
108
Factual Analysis
To assess the minimum wage in the tea industry in Mauritius, a sample of 3 establishments has
been selected which in fact represents the sector firm population as there are only 3 tea
factories in the country. Visits have been conducted by the technical team during the period 30
July to 05 August 2015 in these enterprises..
Demographics of Employees
Permanent v/s Contractual employment
Out of the 144 employees surveyed, 128 aver that they are permanent workers employed on a
full time basis, and 4 other permanent workers claim to be employed on a part time basis. It is
further found that 12 employees work on a contractual mode on a full time basis.
The 12
contractual workers claim to have an average of 5 contracts with the same employer with an
average duration 9 months.
Gender and Age Distribution
From the sample of employees, 52.1% (75) are male employees and 47.9% (69) are female
workers. Further, on average, employees in this sector are found to be in the age group of 51
to 65 years. Detailed age distribution is illustrated as below.
109
This ageing labour force ion the tea sector can be explained by the fact that young potential
workers are reluctant to join the tea industry.
110
Length of service
On average the length of service in this sector is found to be 0 to 5 years with 54 employees
averring same. However, it is further noted that there are 40 employees having more than 20
years of service in this sector. A detail of present employment is illustrated in the chart below.
The survey also reveals that some employees even reckon up to 48 years of service with the
same employer. Survey reveals employees having up to 48 years of service with the same
employer.
Number of employees deriving a basic wage less than Rs 6,500 per month
According to the sample of the employers, 11.0% of the total number of workers in the tea
industry derives a monthly basic salary of less than Rs 6,500. Employers claim that such
employees are female packers and female factory workers.
Level of agreement with minimum wage of Rs 6,500 per month to be fixed
The majority of employers is not agreeable that a minimum wage of Rs 6,500 per month be
fixed for the employees in this sector with no justification being given by employers to explain
their resistance to such a measure.
111
In order to analyse the basic salary of employees in the tea sector in Mauritius, the actual basic
salary of interviewed employees with different years of service and of different categories have
been averaged. As such it is found that on average employees in the sector derive a basic salary
of Rs 9,282 per month and on a daily basis, they derive on average Rs 357. Factory supervisor is
the category of employees deriving the highest salary of Rs 35,000 per month and the lowest
salary is drawn by field labourer (female) of Rs 6,109.
Earnings
According to employees surveyed, on average monthly earnings amount to Rs 9,965 in the tea
sector. Same is found to comprise of payments such as overtime and other allowances. A
breakdown of same is given in the table below.
Details
Overtime
Meal
Attendance
Other
Payment
Allowance in a
Bonus in a
allowances
In a month
month
month
earned during a
month
Average (Rs)
Range (Rs)
No. of employees
1,352
300
365
1,231
140-350
300
100-510
50-6,237
22
105
31
122
143
39
113
earning
No. of employees
not earning
Other allowances earned by employees in the tea sector in Mauritius are found to be:
Sirdar Allowance
Housing Allowance
Incentive Bonus
Tea Leaf Plucking Allowance
Efficiency Allowance
112
PROPOSED WAGES
The second Schedule to the principal regulations is amended
(a) In paragraph 3(2)(i)
In subparagraph (a), by deleting the figure 21.31 and replacing it by the figure 22.86;
and
(ii) In subparagraph (a), by deleting the figure 20.39 and replacing it by the figure 21.94;
8.44
9.32
9.50
Category of worker
Wages
Monthly
(Rs)
Daily
(Rs cs)
GROUP A
8,070
113
310.38
6,924
266.31
Young person
6,500
250
Watchperson (Grade 2)
7,985
307.12
Sirdar or Gangman
8,731
335.81
8,070
310.38
6,924
266.31
Gardener
8,070
310.38
Factory supervisor
9,643
370.88
Messenger
8,090
311.15
Store Attendant
8,473
325.88
(Grade 1)
8,473
325.88
(Grade 2)
8,238
316.85
8,731
335.81
GROUP B
Laboratory
Attendant
Sirdar or Gangman
114
8,325
320.19
(Grade1)
9,353
359.73
(Grade2)
9,042
347.77
(Grade3)
8,543
328.58
(Grade1)
8,561
329.27
(Grade2)
8,352
321.23
(Grade3)
8,158
313.77
8,473
325.88
(Grade1)
9,083
349.35
(Grade2)
8,519
327.65
8,465
325.58
(Grade1)
8,320
320
(Grade2)
7,985
307.12
(Grade1)
8,603
330.88
(Grade2)
8,405
323.27
Factory Operator
Weigher
Leaf Checker
Watchperson
Driver
115
8,070
310.38
Factory Attendant
8,009
308.04
9,456
363.69
116