Morocco Labor Talks Stall as Government, Unions Clash Over Wages and Taxes

The agreement between the executive and the social partners will only be made on the implementation of the IR as of 2023. For the other points on the list of demands, the government would not be on the same wavelength as the social partners, according to several union leaders. The points of contention concern the wage increase (not included in the government’s offer). In addition, the scale proposed by the government regarding the IR is below the expectations of the trade union centers, reports Le Matin.

According to the representative of the Democratic Confederation of Labor (CDT), the meeting last Thursday with Fouzi Lekjaa was "a disappointment." Khalihina El Garch confides that the workers do not want a social agreement that does not take into account a general wage increase. "We were invited to a meeting to discuss the improvement of incomes. But we were surprised by the attitude of Fouzi Lekjaâ who only wanted to discuss one point, that of the reduction of the IR," said the union leader.

For the unionist, "the wage increase and the reduction of the IR are two subjects not to be dissociated. They must be discussed in a single point." That of improving incomes and strengthening purchasing power. "The government today has the means to ensure a wage increase, particularly with the current economic recovery," he stressed.

Returning to the details of the government’s offer regarding the reduction of the IR, the unionist said that it was not normal today that "73% of the State Budget comes from the Income Tax. The time has come for a comprehensive reform so that the contribution of the productive sectors to the State Budget is more important," said the CDT representative. The next meetings between the two parties are likely to be even more stormy.