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Lusa - Business News - Cabo Verde: No wage rises, state to focus on people with no income - PM

Praia,July,4,2022(Lusa)– Cabo Verde's prime minister, Ulisses Correia e Silva, on Monday once again ruled out the possibility of salary increases, as requested by trade unions, saying the government will focus its efforts on people without income due to the successive crises.
"There is no room for increases, especially in this context that has worsened significantly, it is not only a problem of public finances, it is a problem of repercussion in the private sector and a problem of the inflationary spiral that this could cause," the head of government replied when questioned in the city of Praia.
On Sunday, the president of the confederation of free trade unions (CCSL), José Manuel Vaz, once again called for wage increases, explaining that the crises are leading to a rise in the prices of practically all goods and services, but workers' wages remain the same.
The secretary-general of the national union of Cabo Verdean workers (UNTC-CS), Joaquina Almeida, had also drawn attention to the rise in the cost of living in the country and called for a 2 percent salary increase for the civil service.
Currently, Cabo Verde has set a national minimum wage of 13,000 escudos (117 euros) in the private sector and 15,000 escudos (135 euros) in the civil service.
The prime minister asked for understanding from unions, saying that the government's efforts will be focused on people with less or no income, to prevent them from being further squeezed by the effects of the crisis.
"I'm talking about people without jobs, people in rural areas suffering the effects of drought, families with problems, our focus should be on protection and when the country has the means to update the minimum wage, to make salary updates, it will do so, but not in this context of crisis," Correia e Silva added.
The head of the executive guaranteed that the social consultation council, which he leads, will be convened under the "regular calendar," to analyse not only the crisis situation in the country, but also other matters that have to do with the recovery effort, the relaunch of the economy and structural changes.
The archipelago is facing a deep economic and financial crisis, arising from the sharp drop in tourism demand - a sector that usually guarantees 25% of the archipelago's Gross Domestic Product (GDP) - since March 2020, due to the Covid-19 pandemic.
For 2022, due to the economic consequences of the war in Ukraine, namely escalating prices, the government has lowered its growth forecast from 6% to 4%.
Prices in Cabo Verde rose 1.9 percent in 2021, indicate data from the National Statistics Institute (INE) and the government is forecasting inflation of 8 percent this year, the highest in the last 25 years.
On Friday, the average price of fuel on sale in Cabo Verde rose by over 25 percent, according to the multi-sector economic regulatory agency (ARME), which led the government to announce structural measures until December to address these increases.
On 20 June, the head of government declared a situation of social and economic emergency in the country due to the impacts of the war in Ukraine, saying this will allow the country to mobilise resources from international partners.

Agency : LUSA

Date : 2022-07-05 10:48:00


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