C-News Bureau Chief
KAMPALA – Legislators are poised to accelerate the reintroduction of the minimum wage bill, a development announced during a specialized training session for the Parliamentary Forum on Labour, Decent Employment, and Productivity held in Entebbe.
Initially passed by Parliament in February 2018, the Minimum Wage Bill of 2015 aimed to introduce a structured mechanism for setting minimum wages across various economic sectors.
As detailed on the Parliament website, the legislation intended to create minimum wage boards appointed by the minister. These boards were tasked with determining sector-specific minimum wages and were empowered with specific duties, functions, and procedural responsibilities for wage determination.
The bill, championed by Workers MP Arinatwe Rwakajara, was designed to rectify deficiencies in the existing Minimum Wage Advisory Board Act by establishing a framework for both employee and employer-led minimum wage determination that would be applied across different sectors.
However, the bill faced a significant setback when President Museveni, following recommendations from then-Attorney General William Byaruhanga, vetoed the bill. In a letter dated August 21, 2019, addressed to then-Speaker of Parliament Rebecca Kadaga, President Museveni returned the bill without his assent, stalling its progress. This move highlighted the complexities and challenges of legislative reform in the area of wage regulation in Uganda.
In an interview for this article, Bugahya County MP Pius Wakabi emphasized the urgent need to address the issue of minimum wage in Uganda. “We need to bring up the issue of the minimum wage because you will find that most employees are being paid as little as Shs100,000 a month. That is so little that somebody cannot even survive. That means that he earns less than a dollar per day,” Wakabi explained. He advocates for a minimum wage where the least an employee should earn is Shs 500,000, acknowledging that while Uganda has robust laws, their implementation remains a significant challenge.
Sarah Opendi, representing the state minister for labor, highlighted a cultural challenge related to savings among Ugandans, noting that many only save for short-term gains, such as end-of-year festivities, rather than long-term financial security. She also pointed out the rampant exploitation of workers, particularly in the private sector, due to the absence of a minimum wage law. “There were efforts to have the minimum wage dealt with, but these efforts have not yielded any fruit. I hope that very soon we shall have this bill presented, of course as a private member’s bill, so that we can deal with the issue of the minimum wage to do away with the exploitation of Ugandans,” Opendi said.
Opendi also noted the potential for mandatory savings schemes as a solution to help alleviate some of the economic challenges faced by Ugandans. During the meeting, legislators expressed concern over the lack of supervision and the unsafe conditions in which Ugandans are employed, particularly in factories, where safety gear is often not provided unless there is a strike or a severe accident.
Berivan Erbil Pamuk, a decent work and social protection expert at Enable Belgian Development Agency, defined decent work protection as essential for preventing vulnerability, social exclusion, and poverty throughout people’s lives. “Social protection includes non-contributory schemes, contributory schemes, and labor market policies from the state because it can influence labor market integration for job seekers,” she stated, highlighting the broader implications of social protection measures on national growth.
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