Tuesday, May 2, 2000
Why workers can't expect a better deal
Labour Day is no longer what it used to be. Long gone are the days when
workers waited with bated breath for the highlight of the annual celebration
when the government, after careful calculation, announced wage increments
that reflected economic growth and helped workers' incomes keep pace with
the inflation rate.
Unless the economy picks up considerably, what happened yesterday during
the Labour Day celebrations is likely to become a common feature – workers
walking out on the Labour Minister the moment he announced how much more
they would be earning.
The announcement of a six per cent minimum wage increment did not, and
was not expected to, go far enough to cushion the ravages of an inflation
rate that has seen purchasing power eroded to the bone.
Last year, Mr Ngutu announced a seven per cent increment, a statistic
that translated into a Sh140 raise. This was hardly enough to make a difference
to workers forced to live below the poverty line. And we are talking here
about more than 14 million Kenyans who cannot make ends meet.
With this year's increment, the minimum wage will rise to just over
Sh3,000 from last year's Sh2,886. How anyone can be expected to subsist
on such a figure for a whole month when their house rent alone accounts
for half that amount is impossible to fathom.
Of course, expectations had been raised by unionists and politicians
demanding higher wages. The Central Organisation of Trade Unions had asked
for an 11 per cent increment, a far more realistic demand than the one
by veteran trade unionist Dennis Akumu, who wanted the minimum wage to
be fixed at Sh10,000, or the other by National Development Party leader
Raila Odinga, who called for a 100 per cent increment to a more reasonable
Sh6,000.
But the question is whether any of these suggestions make much sense,
considering that our economy is, and has been for a considerable period,
in the doldrums. The only answer to these expectations is to ensure our
economy starts growing again, something that will require a lot more than
the government can deliver by merely ordaining that workers be paid hefty
sums. To do so would just fuel inflation, meaning that even the little
the workers would get would simply go up in a puff of inflationary smoke.