3 Trade Unions Leaders Propose Bold Economic Reforms for Mauritius

Monday 7th April, the Government House’s Conference Room will serve as the stage for the much-anticipated commencement of pre-budget consultations aimed at crafting the financial framework for 2025-26. The session, which will be chaired by Junior Minister for Finance Dhaneswar Damry, is expected to draw participation from the most representative trade union federations.

In the lead-up to this pivotal meeting, union leaders have already formulated their proposals, following last week’s address by Prime Minister and Minister of Finance Navin Ramgoolam, which provided a comprehensive overview of the nation’s economic climate.

Deepak Benydin of the CITU expressed the urge for an Administrative Court

Benydin further emphasised the necessity for the government to take decisive action concerning the infamous health booklet, the urgent filling of vacant positions within the Ministry of Health, and tackling the critical issue of water capture to prepare for the impending dry spell.

Benydin expressed profound concern regarding food security, particularly in the context of vegetable supply.

While acknowledging the European Union’s assistance in addressing these challenges, he maintained that the situation remains precarious.

He stressed, “In light of climate change, the government must prepare to cleanse all rainwater drainage systems originating from the mountains to avert flooding.”

The nation also grapples with a significant shortage of skilled labour within the construction sector.

Benydin urged the government to enhance training for youth in this field while simultaneously advocating for the implementation of a decent wage policy.

He continued, “It is imperative to eradicate domestic violence, combat drug proliferation, and create accessible spaces for individuals with disabilities in public areas such as food courts, libraries, and shopping malls.”

Moreover, he insisted on the necessity of amending labour laws to redefine what constitutes a ‘worker,’ enabling all individuals earning over Rs 50,000 to also receive a thirteenth-month bonus.

“A price control system must be introduced without delay, along with the establishment of an Administrative Court to adjudicate those found culpable following revelations in the Audit report, alongside the creation of a Parastatal Bodies Commission to oversee recruitment and promotions within state-owned entities.”

Haniff Peerun – MLC : Entertainment Allowance Elimination to parliamentarians

He highlighted the urgent need to lower VAT on essential goods and abolish it entirely on others, as well as reducing or eliminating specific taxes that impact fuel pricing and removing the TV levy.

Peerun underscored the necessity for an immediate mechanism for price regulation of everyday goods and medicines, alongside abolishing vehicle registration fees.

He proposed the removal of taxes on lump-sum payments and pension benefits, insisting that parents with unemployed children over the age of 18 should be allowed to include them in their tax returns for deductions.

Furthermore, he urged the government to increase personal deductions on tax forms by 50% and to provide additional fiscal relief to parents with children in primary and secondary education for private tuition fees.

Peerun called for the establishment of public-private partnerships in the healthcare sector to ensure patients are directed to the nearest care facilities.

Among other MLC demands are free medical exams for workers at their workplace, free medical insurance for specific high-risk job categories, and a transparent pricing system for services in private clinics.

Additionally, local health centres should extend their operations during public holidays, with state-funded medications from private pharmacies earmarked for individuals over 65.

Finally, he proposed the potential reopening of commercial banks on Saturdays and compensating for public holidays that fall on Sundays with an extra day off.

The government must also contemplate the merger of the Pay Research Bureau with the National Remuneration Board and consider limiting ministerial delegations abroad, alongside abolishing the Entertainment Allowance granted to parliamentarians.

Clency Bibi’s Bold Call for Economic Reform

In a fervent declaration, Clency Bibi, representing CSG-Solidarité-NTUC-JNP, has called upon the government to fulfil the promises made during the last general elections by implementing significant economic reforms.

He emphasised the necessity of collecting wealth from the affluent to support the government’s programme, stating emphatically:

“The government cannot claim there is a lack of funds when the previous administration neglected to impose adequate taxes on the wealthy.”

Bibi stressed the urgent need to revitalise the economy to meet the aspirations of the Mauritian populace, particularly its workers and youth.

“It is imperative that we adopt a fresh economic policy focused on generating productive jobs, advocating for energy security through renewable sources involving all stakeholders, ensuring food security rooted in agroecology, and steering our blue economy towards sustainable practices.”

A pivotal aspect of his proposal includes a reduction in the Value Added Tax (VAT) from 15% to a more manageable 10%, to ease the financial burden on families and boost their purchasing power.

He argued vehemently that, “VAT should be completely abolished on all social services.

Water, electricity, sanitation, and domestic telephone services are not commodities; they are essential needs for survival in the modern world.

The government must not treat them as goods to be bought and sold.”

Moreover, Bibi advocated for an increase in corporate tax rates from 15% to 22.5% and proposed the establishment of a stabilisation and support fund of at least Rs 10 billion.

This fund would aim to safeguard families’ purchasing power, stabilise the prices of essential goods, and alleviate their financial burdens, in line with the manifestos of the Alliance of Change.

He further suggested the need to revise fuel taxes to lower petrol prices, a change that could lead to reduced costs of refrigerated goods and beyond.

The abolition of income tax for households earning below Rs 1 million annually, along with adjustments to various thresholds, was also tabled.

Under her vision, all individuals with a monthly income exceeding Rs 45,000 should be exempt from income tax entirely.

Reeaz Chuttoo’s Vision for Controlled Immigration and Social Justice

In parallel, Reeaz Chuttoo of the CTSP articulated a vision for a more controlled immigration policy, insisting that social justice must prevail through inclusive growth.

He posited that the livelihoods of Mauritian citizens should not be subservient to the whims of the market.

“Every Mauritian must have access to fundamental needs such as food, housing, clean water, quality education, healthcare, affordable clean energy, dignified work, decent pay, a good work-life balance, a peaceful retirement, and an unpolluted environment. These rights are enshrined in our Constitution.”

Chuttoo urged the government to open the country’s borders to controlled immigration while ensuring decent work conditions and pay for all, including foreign workers who contribute to Maurice’s economic growth.

“We cannot revert to a discriminatory pension system that pays workers based on their sector rather than their profession. Mauritius, as a multicultural nation, must stand as a beacon of social integration for the world.”

He emphasised that all residents, irrespective of gender, should share in the prosperity of economic growth and firmly opposed advocates of neoliberal policies, which dismiss state involvement in the direct production of goods and services.

Radhakrishna Sadien Calls for Urgent Infrastructure Investments and Reforms

Lastly, Radhakrishna Sadien from the SOEF has highlighted the need for comprehensive investments across various sectors to enhance citizens’ quality of life.

In the face of climate change, he declared that all infrastructure projects must consider flooding risks. “We must prepare for every contingency,” he proclaimed.

Regarding waste management, Sadien stressed the importance of initiating recycling efforts at the household level, urging the government to supply various bins to encourage composting and recycling of plastic products.

Moreover, he insisted on the necessity to reform the Public Service Commission to recruit individuals based on skill and experience rather than mere affiliation.

“To attract competent individuals, whether from Mauritius or abroad, promotions must be based on qualifications and expertise, not other considerations. An efficient public service is essential for our progress.”

As these leaders share their visions, the upcoming government budget presents a remarkable opportunity for economic and social transformation.

Source: Le Mauricien