Sudanese president to soon sign decision on raising minimum wage: SWTUF

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[image: increase] <http://www.sudantribune.com/spip.php?article48230#>
[image: decrease] <http://www.sudantribune.com/spip.php?article48230#>
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September 29, 2013 (KHARTOUM) - The Sudanese Workers Trade Unions
Federation (SWTUF) announced on Sunday that president Omer Hassan al-Bashir
will soon sign a decision by which the minimum wage will be raised
retroactively effective January 2013.

The minimum wage in Sudan is currently 165 pounds ($37.5 based on the
official exchange rate) and the government has sought to informally raise
it over the last two years by adding what is known as the "Presidential
Grant" in the amount of 100 pounds ($22.7).

It was later supplemented by another 100 pounds in allowance which brought
up the lowest wage on the scale to 365 pounds ($82.95) but as it is not
stipulated by law, it could be withdrawn at any time. In fact, many
sections of the government claimed that the extra 200 pounds were never
received by their employees.

But the SWTUF asserted that those who have not received the 200 pounds bump
will do so once Bashir signs the decision on raising minimum wages. It also
emphasized that all procedures to effect the decision has been taken in the
cabinet and other government agencies.

The union lauded the move to implement the pay hike describing it as an
incentive for more production but at the same time acknowledged that there
remains a big gap between salaries and cost of living in Sudan.

The timing of the decision coincides with one of the worst protests Sudan
has witnessed in years over the government’s decision this week to lift
fuel subsidies which almost doubled their prices.

A gallon of gasoline now costs 21 Sudanese pounds ($4.77 based on official
exchange rate) compared to 12.5 pounds ($2.84).

Diesel also went from 8 pounds ($1.81) a gallon to 14 pounds ($3.18).

Cooking gas cylinders are now are priced at 25 pounds ($5.68) from 15
pounds ($3.40).

The government said that 33 people were killed in the demonstrations but
activists and opposition put the figures in the 100’s.

Yesterday, 31 NCP officials and Islamists petitioned president Bashir to
reinstate the fuel subsidies, end the killing of protestors and implement
wide political and economic reforms.

However, Sudanese officials insist that there is no backing from the
subsidies cut stressing that it is necessary to prevent an economic and
fiscal collapse.

The government spokesperson who is also Sudan’s information Minister Ahmed
Bilal Osman told Agence France Presse (AFP) there was no going back on the
fuel price increases.

"This is the only way out," Osman said in a telephone interview, adding
that the government knew "riots" would occur but could not sustain the cost
of billions of dollars in subsidies.

"Our economy cannot tolerate such support," he said. "We have to carry on.
We know it is a bit heavy for the people".

Sudan, already crippled by US economic and financial sanctions and $40
billion plus debt, lost 75% of its oil with the secession of the south in
July 2011.

The East economic nations relied almost exclusively on oil exports for
revenue and hard currency which critics say has made government overlook
boosting other sectors such as agriculture and industry.

(ST)

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