Trade Unions Blast 14th Month Bonus Axe: Unite Against Government Move

A decision by the Mauritian government to scrap a special “14th month” bonus payment this year, citing a need to “redress the economy,” has sparked furious reactions from major trade unions, who label the move an attack on workers amidst soaring living costs.

The controversy follows a statement by Junior Minister for Finance, Dhaneshwar Damry, who declared in Plaine-Magnien that the bonus, a measure granted last year, would not be paid as economic recovery was the government’s priority.

Trade union leaders have dismissed the government’s economic concerns, arguing the payment is now a vital “lifeline” for workers and that the national economy is robust.

Union Leaders Decry Decision

Haniff Peerun, President of the Mauritius Labour Congress (MLC), conceded the bonus isn’t legally mandated but stressed it was granted last year as an essential measure. He slammed the government’s priorities, highlighting the financial struggles faced by families:

• The ’14th month’ has become crucial due to the “considerably increased” cost of living, particularly helping with heavy expenses in December and school-related costs in January.
• He directly challenged the government’s economic justification, asserting that the country’s economy “is not in difficulty, all sectors are doing well,” citing the private sector’s post-Covid-19 rebound.
• Peerun also noted that the government’s decision to gradually suppress the CSG Allowance further exacerbates the financial strain on workers.
• He suggested the government has sufficient funds, pointing to the high remuneration of advisors and ministers and “important additional expenses” from overseas travel by official delegations and parliamentarians.

Deepak Benydin, President of the Federation of Parastatal Bodies and Other Unions (FPBOU), echoed the criticism, arguing the government’s gradual removal of the CSG Allowance already represents a shortfall for workers.

• Benydin stated that while some product prices have fallen, the impact on household budgets is minimal, with Basmati rice, meat, and fish prices still high.
• He maintained that the economy is performing well, referencing international institutions and the World Bank’s recognition of Mauritius’s “financial solidity,” ranking it third in Africa.
• He accused politicians of “duping” voters, claiming the bonus announcement last year was a tactic to win elections, and stressed that “The human must be at the centre of development.”

Consultation and Past Disappointment

Union leaders also expressed frustration over the lack of consultation regarding the decision, especially after the recent “Assises du travail” (Labour Conferences).

Clency Bibi, President of the General Workers Federation (GWF), expressed disappointment that the decision was learned through the press, stating:

• Last year’s bonus was only for those earning up to Rs 50,000, and this ceiling was “imposed” on unions with only two hours’ notice before a meeting.
• He noted the lack of consultation this year, despite recent labour talks, saying, “We take good note of it and we will talk about it again.”

Sanjay Sembhoo, President of the Conseil des Syndicats (CDS), commented that it would be a “great surprise” if the government reversed course and granted the bonus to all workers, expressing a grim resignation to unkept promises:

• He recalled that last year’s bonus—renamed ‘Special Allowance’—was already a “disappointment” due to the Rs 50,000 ceiling, which left the middle class out.
• He also mentioned other unexpected actions, such as the unannounced adjustment of the Basic Retirement Pension (BRP).

Background: Campaign Promise and Cost of Living

The ’14th month’ bonus was a measure used by the currently ruling Alliance du Changement to win the elections, a strategy also employed by other political parties, according to Haniff Peerun. Its introduction was ultimately seen as a necessary response to the sharp increase in the cost of living.

The current withdrawal of the bonus comes alongside the government’s gradual phase-out of the CSG Allowance (CSG Allowance — Suppression graduelle), intensifying the financial pressure on the workforce.

Source: Le Mauricien