Observation (CEACR) - adopted 2016, published 106th ILC session (2017)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Uganda (Ratification: 1963)

The Committee notes that the Government’s report has not been received. It is therefore bound to repeat its previous comments.

Follow-up to the discussion of the Committee on the Application of Standards (International Labour Conference, 103rd Session, May–June 2014)

Articles 1–4 of the Convention. Establishment and operation of minimum wage fixing machinery. The Committee notes that this case was discussed before the Conference Committee on the Application of Standards in June 2014. During this discussion, the Government indicated that it had prepared a paper to reactivate the Minimum Wage Advisory Board for submission to the Cabinet. It also indicated that the Cabinet was expected to approve the new Wages Board by September 2014 and that once approved, the Wages Board should submit its recommendations to the Cabinet by the end of April 2015. It further indicated that the Cabinet was expected to have considered these recommendations by June 2015, and the new minimum wage was to be implemented by July 2015. Moreover, the Government indicated that it was ready to follow the recommendation of the Committee of Experts, and looked forward to receiving technical assistance from the ILO in order to complete the wage-fixing process in a manner beneficial to workers, employers and the Government. The Committee also notes the observations submitted by the International Organisation of Employers (IOE) and the Federation of Uganda Employers (FUE) on 21 August 2014, raising concerns regarding the application in law and practice of the Convention. In their observations, the IOE and the FUE indicated that the inactivity of the Minimum Wage Board has resulted in a national minimum wage rate which had remained unadjusted since 1984. According to the IOE and the FUE, the Minimum Wage Advisory Board would need to be reactivated, and the participation of the social partners in the minimum wage fixing machinery would need to be guaranteed. Moreover, the IOE and the FUE underlined that Uganda was benefiting from a growth in GDP which should translate into the full implementation of the Convention as soon as possible. The IOE and the FUE also concurred with the Government on the fact that a study on wage trends in different economic sectors, and an evaluation of the cost of living, together with an analysis of employment trends and various economic factors needed to be conducted before a new minimum wage could be fixed. Finally, the IOE and the FUE called on ILO technical assistance, which they consider desirable for the Government to avail itself of, so that the new minimum wage could be fixed and implemented by July 2015. The Committee requests the Government to provide any information as a follow-up to the discussion of June 2014 before the Conference Committee on the Application of Standards with regard to the reactivation of the Minimum Wage Advisory Board and the subsequent fixation of a new minimum wage in the country, as well as to transmit any comments it may wish to make in reply to the observations formulated by the IOE and the FUE.

The Committee hopes that the Government will make every effort to take the necessary action in the near future.