Effect given to the recommendations of the committee and the Governing Body - Report No 327, March 2002

Case No 2106 (Mauritius) - Complaint date: 23-OCT-00 - Closed

Effect given to the recommendations of the Committee and the Governing Body

1. 84. The Committee examined this case at its June 2001 meeting [see 325th Report, para. 488] where it made the following recommendations. Noting that tripartite discussions were taking place concerning the pay increase for public servants, the Committee expressed its trust that constructive negotiations, for which the bargaining agent should have full access to information, would be held, taking fully into account the increase decided by the previous Government, and requested the Government to keep it informed of the outcome of these discussions; the Committee also requested to be kept informed of the outcome of judicial proceedings filed against the cancellation of the pay increase. As regards the situation at the Rose Belle Sugar Estate, the Committee recommended that good faith bargaining resume on pending issues, with the bargaining agent being given full information on financial and other data enabling them to assess the situation in full knowledge of the facts, and requested the Government to keep it informed of developments.
2. 85. The Government gave the following information in a communication of 24 August 2001:
   • – A national tripartite meeting, chaired by the Deputy Prime Minister and the Minister of Finance with the participation of various federations and confederations, including the complainants, took place in early May 2001. The unions were fully briefed on the economic situation of the country and, in spite of a difficult budgetary situation, constructive negotiations led to the granting of a 5 per cent salary compensation (higher than the current inflation rate of 4.4 per cent) to public servants in the lowest income group. The Government attaches the scale of salary increments granted, ranging from 2.62 per cent to 5 per cent.
   • – The Mauritius Labour Congress has been advised in writing that, should they wish to pursue their claim of Rs300 for public officers, this matter should be taken up with the Pay Research Bureau (PRB), as part of the ongoing review exercise of the public sector pay and grading structure. The Government points out that the claim for Rs300 was not one for compensation for loss of purchasing power; rather, that amount represented an interim measure pending the report of the Heeralall Committee, which had been appointed to look only in anomalies arising out of the 1998 PRB report. That report has been published and all its recommendations have been fully implemented.
   • – The Government has further agreed to pay an end-of-year bonus, representing one month’s salary, to workers in both the public and private sectors. This bonus will henceforth become permanent under the End of Year Gratuity Act, which has been enacted by the National Assembly. This represents a major improvement in the conditions of service of both private and public sectors, since this payment will now be automatic, as opposed to the previous situation where it was decided annually whether that bonus would be paid.
   • – The Government also indicates its intention to hold monthly national tripartite meetings with social partners, to discuss labour-related issues and the socio-economic development of the country.
   • – Regarding the judicial proceedings mentioned in the complaint, the Government indicates that a notice of “mise en demeure” was indeed served on 4 October 2000 by the Federation of Civil Service Unions, requiring the Government to pay all officers an increase of Rs300, but that no lawsuit has been filed.
   • – The financial situation at the Rose Belle Sugar Estate is still precarious. Meetings are being held with neighbouring sugar factories with a view to closing it. Under section 24 of the Cane Planters and Millers Arbitration and Control Board Act, an application for closure must be made to the Minister of Agriculture at the latest by 15 October of any preceding crop year. In these circumstances, the Government does not consider it appropriate to enter into negotiations at this point. Once the situation is cleared, which should not take time in view of the statutory limitations, the negotiations will be carried out, taking into account the conclusions and recommendations of the Committee.
3. 86. In a communication dated 12 October 2001, the FCSU states that there has been no development as regards the Rs300 interim pay increase and that the Government has refused all negotiations on this issue. It adds the following information:
   • – on 25 June 2001, the FCSU requested a meeting with the Deputy Prime Minister and the Minister of Finance; on 2 July 2001, the latter replied that a tripartite meeting had already taken place in May, where all issues were discussed, and that no further meeting was warranted; on 18 July, the FCSU replied to the Minister that the Rs300 issue was never raised at that meeting, whose only agenda was to discuss a salary compensation to compensate a rise in the Consumer Price Index (for the 2000-01 financial year); it never received any answer to its request for another meeting;
   • – the FCSU adds that workers’ representatives merely make representations to the PRB and are never made aware of the Government’s intentions and proposals as an employer; due to its present set up and mode of functioning, the PRB is not an appropriate forum where the parties could negotiate;
   • – furthermore, the National Tripartite Committee deals with the private sector, and never had anything to do with pay negotiations in the public sector;
   • – the FCSU concludes that the Government is disregarding a collective agreement, continues to refuse to pay the Rs300 increase and to hold negotiations, despite the Committee’s recommendations, all of which is in violation of freedom of association principles.
4. 87. In its communication of 16 November 2001, the Government reiterates some of the information provided in its communication of 21 August 2001, points out that it followed the Committee’s recommendations by discussing the issues within the National Tripartite Commission, and provides the following additional information:
   • – two meetings were held in May 2001, where the unions were fully briefed on the economic situation; another meeting was held on 19 August 2001 under the chairmanship of the Deputy Prime Minister and the Minister of Finance, where all trade union federations were convened, to discuss budget implementation; the unions were given full opportunity to present their views, but the President of the FSCU did not attend the meeting;
   • – the Pay Research Bureau, set up in 1978 with the specific objective of fixing wages and conditions of employment in the public service, has fulfilled exactly that mandate since its creation. The PRB makes recommendations only after having consulted all parties concerned, mainly trade unions. The PRB conducts salary reviews every five years and has already started procedures for the next review, due in 2003. The Ministry of Finance has informed the Mauritius Labour Congress that it may take up the issue of the Rs300 with the PRB as part of that ongoing exercise;
   • – the Government is concerned about the negative impact of the 11 September events on the Mauritian economy and must exercise still greater caution in the management of the financial situation; it has decided to set up a National Economic and Social Council, which would include trade unions and other social partners to discuss broad economic and social policies and projects; the Bill providing for the establishment of the Council has been discussed with all partners concerned.
5. 88. The Committee notes that, notwithstanding the parties’ differing appreciation on the nature and extent of the consultations and discussions which were held, a national tripartite meeting took place, which led to salary increases being granted to public servants on a sliding scale in favour of the lowest-paid category of personnel. The Committee further notes that private and public sector workers alike will henceforth get a statutory yearly bonus, which complements the compensation package. Noting that no judicial proceedings have been filed concerning the claim for Rs300, which claim might be taken up with the PRB as part of the ongoing salary review exercise, the Committee requests the Government to keep it informed of the outcome, if any, of these PRB proceedings. Noting that the Government intends to take into account its previous conclusions and recommendations as regards the situation at the Rose Belle Sugar Estate, the Committee requests the Government to keep it informed of developments in this respect.