Morocco: Labor tensions on the rise over wages

  1. Morocco: Labor tensions on the rise over wages
Location:
Casablanca, Morocco, Maghreb
Incident Date: February 15, 2024
Instability Rating Max 5.0: 1.50
DESCRIPTION::

Bloomberg says Morocco's largest trade union, Union Marocaine du Travail (UMT), is advocating for substantial wage increases, intensifying pressure on a government already burdened by earthquake reconstruction costs and labor strikes due to rising inflation. The UMT seeks a minimum wage hike of over 60% and a general increase in public-sector salaries, following a recent 29% raise for teachers. Talks between the government, unions, and businesses are scheduled for April. Meeting these demands poses a challenge for Morocco's fiscal goals, including regaining an investment-grade credit rating, financing earthquake recovery efforts, and preparing for the 2030 World Cup. The government faces pressure to address demands from various sectors, including education, health, and infrastructure. Additionally, the UMT calls for a reduction in income tax, which the government initially promised but postponed due to the earthquake.

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