Clashing statements on wage increase

Ghandour + Mahoud in frame

The phenomenon of contradictory and inconsistent statements, has become very common nowadays even within government institutions, where in a very paradoxical statement, the chairman of the Sudanese Workers Trade Unions Federation (SWTUF) Prof. Ibrahim Ghandour, revealed an agreement with the Ministry of Finance and National Economy (MFNE) to adopt a raise in the minimum wage to 425 pounds as of next January, a claim strongly denied by the MFNE, which said that the issue is still under review by the committee formed by the President. The committee is due to submit its preliminary report in the first quarter of next year, the ministry said.

During an emergency meeting of the federation's Central Committee on Saturday, Ghandour affirmed rejection of any symbolic wage increase less than the figures which have been agreed and refused wage increases which fail to keep up with inflation.

In a show aired by Blue Nile TV Channel the day before yesterday, Ghandour described the MFNE remarks as self-contradictory, revealing an unannounced agreement between the two sides to implement the increase over two stages starting next January. Ghandour, said the presidency is in favor of increasing wages, taking the economic situation the country is currently going through into account.

A visibly irate Ghandour questioned how Sudanese workers can live off 260 Sudanese pounds a month ($59 based on official rate) and accused the finance ministry of reneging on their deal.

“We are talking about 165 pounds [increase] only” Ghandour was quoted by Sudan Tribune, warning that failure to respond to the union’s demands could put them “in a confrontation” with the state.

Twenty minutes into the show, the finance minister, Ali Mahmoud called in to strongly deny any agreement with labor unions to increase wages as of next January, saying that he did not agree with the federation on wage increases in terms of numbers, but only “on the principle” of raising wages. The minister said this without giving any specifics or offering a timeline.

Mahmoud pointed out that his ministry is awaiting the presidential report.

“The presidential committee on wages has to first present its findings for approval before the finance ministry can implement any possible increase”, he said.

On his part, State Minister of Finance, Magdy Hassan Yassin said in a statement to "Al-Sahafa" Arabic daily that “In light of these ' committee' reports we will begin to consider how to increase wages and determine the percentage and consequent strain on the budget". Practically killing all hope for a wage increase in 2013, Yassin pointed out that the next year's budget has been approved by parliament and rejected SWTUF talk about his ministry’s approval for a wage increase.

“With parliament having already approved the [2013] budget…. [how] are we supposed to act [spend more money] outside the budget?” Mahmoud posed the query.

The official said, however, that should the cabinet endorse a committee recommendation on increasing wages, then the budget could be amended accordingly; but only at that time and not before.

Asked how the government could fund such an increase, Mahmoud declined to offer details saying that new resources will be found.

Pressed on whether this would come through raising taxes or further lifting subsidies as he stressed in the past, the finance minister terminated the phone call midway through the conversation.

After months of staunch opposition, Mahmoud hinted this week that the government will move ahead with bumping wages but cautioned that he did not know by how much.

It’s worth noting here that both the finance minister and the chairman of labor union are members of the ruling National Congress Party (NCP).

In a previous outrageous statement to Al-Jazeera TV channel, during widespread protests against prices hikes last July, NCP member Rabie Abdel Aati said that the average per capita monthly income in Sudan increased from 500 to an incredible $1800 thanks to his party! The statement drew severe criticism, both from public opinion and within his party. The NCP distanced itself from Mr. Rabie statements, asking him not to talk on its behalf on such issues.