Moroccan Government Announces General Wage Boost for Public Workers

Students attend a class at Mohammed VI Institute for training Imams in Rabat, Morocco April 16, 2019. REUTERS/Youssef Boudlal
Students attend a class at Mohammed VI Institute for training Imams in Rabat, Morocco April 16, 2019. REUTERS/Youssef Boudlal
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Moroccan Government Announces General Wage Boost for Public Workers

Students attend a class at Mohammed VI Institute for training Imams in Rabat, Morocco April 16, 2019. REUTERS/Youssef Boudlal
Students attend a class at Mohammed VI Institute for training Imams in Rabat, Morocco April 16, 2019. REUTERS/Youssef Boudlal

The Moroccan government has announced upping wages for nearly 800,000 state body and public administration employees over the next three years. The boost, estimated at $700 million, will work to reinforce the political and social stability of the kingdom.

The announcement was made after the government, three trade unions and the General Confederation of Enterprises of Morocco (CGEM) signed an agreement to not only increase wages, but also social benefits in the country.

Addressing the deal’s signatories, Moroccan Prime Minister Saad Eddine El Othmani said the agreement affects minimum wages, social protection payments, and trade union freedoms.

Dubbing the deal as vital, Othmani noted that it “will contribute to laying the foundations for social peace, improving social conditions and strengthening the national economy through establishing a sound economic and social environment.”

The agreement will be effective from 2019 to 2021. Depending on the employee’s position, wages will increase by up to MAD 400 or 500 ($42 or $52) per month, starting at MAD 200 ($20) per month on May 1, 2019.

Othmani indicated this would involve total spending of MAD 2.5 billion ($260 million) during 2019, and up to MAD 7 billion ($724 million) in 2021.

The agreement will establish a new minimum wage for national education sector employees. This is expected to benefit more than 24,000 employees, with a government spending of over MAD 200 million (roughly $21,000).

The government will also increase the minimum wage in the private sector (industry, trade, services, and the agricultural sector) by 10% over two years, with a 5% increase taking effect in July 2019 and a further 5% increase in July 2020.

The agreement also stipulates an increase in family benefits for public and private sector workers. Family compensation will increase by MAD 100 ($10.35) per child, for up to three children, from 1 July 2019, tweeted Moroccan television channel 2M.

“The Government is committed to mobilizing the necessary financial resources to cover the costs of this agreement,” Othmani reasserted.



Spain Gives Green Light for Saudi STC to Raise Stake in Telefonica to 9.97%

STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo
STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo
TT

Spain Gives Green Light for Saudi STC to Raise Stake in Telefonica to 9.97%

STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo
STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo

The Spanish government has given the green light to Saudi Arabia's largest telecoms operator, STC Group, to raise its stake in Telefonica beyond 5% and reach 9.97%, Economy Minister Carlos Cuerpo said on Thursday.

Cuerpo confirmed an earlier report by El Pais newspaper during a news conference following the cabinet's weekly meeting in which the stake increase was approved, Reuters reported.

"Measures and conditions have been set and accepted voluntarily by the Saudi company to ensure that (the operation) takes place," Cuerpo told reporters.

He said the government's decision followed an "exhaustive analysis based not only on compliance with current legislation but also to guarantee the national interest in defense and ensure the strategic element in telecommunications".

Last year, STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder.

The Saudi group said at the time it owned a 4.9% stake in Telefonica and financial instruments giving it another 5% in what it called economic exposure to the company.

The Spanish government had to authorize the deal as Telefonica is considered a defence service provider and therefore a strategic company.

The Saudi company has said it does not intend to gain control of or a majority stake in Telefonica.