Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

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

The Committee notes the information provided in the Government’s report, in particular the statistical data concerning the average monthly wage by industrial sector and occupation. It also notes that, according to the Government’s report, the national minimum wage has not been adjusted since 1984 and currently stands at 6,000 Uganda shillings (approximately US$3.30) per month. The Committee notes that, according to some accounts, the Minimum Wages Board had adopted in 1997 through tripartite consultations its report containing its recommendations on a national minimum wage, which was subsequently submitted to Cabinet, but no substantive action appears to have been taken since.

In this connection, the Committee recalls that the fundamental objective of the Convention, which is to ensure to workers a minimum wage that guarantees a decent standard of living for them and their families, cannot be meaningfully attained unless minimum wages are periodically reviewed to take account of changes in the cost of living and other economic conditions. The Committee has consistently taken the view that when minimum rates of pay are left to lose most of their value so that they ultimately bear no relationship with the real needs of the workers, minimum wage fixing is reduced to a mere formality void of any substance. The Committee therefore requests the Government to indicate the measures it intends to take to ensure that the minimum wage rate in force fulfils a meaningful role in social policy, which implies that it should not be allowed to fall below a socially acceptable “subsistence level” and that it should maintain its purchasing power in relation to a basic basket of essential consumer goods. The Committee also requests the Government to keep it informed of any further developments concerning the funding and operation of the Minimum Wages Board, especially as regards the consultation and participation of the most representative employers’ and workers’ organizations.

With reference to the recently enacted Employment Act, 2006, the Committee would appreciate receiving a copy. It would also be grateful if the Government could continue to supply information on the practical application of the Convention, including up to date statistics on the number of workers remunerated at the minimum wage rate, extracts from inspection reports showing the number of infringements of minimum wage legislation and sanctions imposed, as well as any other particulars which would enable the Committee to better understand the difficulties encountered or the progress achieved by the Government in discharging its obligations under the Convention.