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Minimum Wage: A Global Perspective and FES Rwanda's Initiatives

Minimum wage is a crucial tool to protect workers from unduly low pay and promote economic growth. FES Rwanda focuses on good governance, gender justice, climate crisis, youth empowerment, and labor rights. Setting minimum wage requires a tripartite process involving employers, employees, and the government, with a basis in a rights-based approach. It complements collective bargaining, contributes to economic stimulus, equity, and gender pay equality. Regular updates, regional frameworks, and enforcement mechanisms are essential for its effectiveness.

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Minimum Wage: A Global Perspective and FES Rwanda's Initiatives

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  1. MINIMUM WAGE – A GLOBAL PERSPECTIVE

  2. WHAT IS FRIEDRICH EBERT STIFTUNG (FES)? Germanorganisation working on social justice and social democracy – freedom, justice and solidarity  In Rwanda our work focuses on •Good Governance •Gender Justice and Feminism •Climate Crisis •Youth Empowerment •Social Dialogue and Labour Rights Collaboration with CSOs, trade unions, researchers, government institutions, think tanks, local and international organizations based in Rwanda.

  3. „MINIMUM WAGE IS A MINIMUM PAY RATE THAT AN EMPLOYER IS LEGALLY REQUIRED TO PAY; A RATE THAT CANNOT BE REDUCED BY COLLECTIVE AGREEMENT OR INDIVIDUAL CONTRACT. THE PRIMARY OBJECTIVE IS TO PROTECT WORKERS AGAINST UNDULY LOW PAY.“ 5 MESSAGES ON MINIMUM WAGE

  4. 1. MINIMUM WAGE AS A FACTOR FOR ECONOMIC GROWTH Minimum wages are not detrimental to employment and growth It can be a powerful economic stimulus Decent wages contribute to more equity, higher welfare, more inclusive development and economic growth Minimum wage as a tool to close the gender pay gap

  5. 2. A MINIMUM WAGE IS NOT A ONE SIZE FITS ALL Processes of setting it up differ largely from country to country Minimum wage must take into account the costs of living Must be regularly updated

  6. 3. MINIMUM WAGE HAS TO BE A TRIPARTITE PROCESS Tripartite = involving employers, employees (through trade unions) and the government  SOCIAL DIALOGUE Trade Unions have to be invloved given their strong linkage to the workers REGULAR tripartite meetings are needed to adjust when needed Regional frameworks may help, i.e. ILO C131 Enforcment mechanisms must be in place

  7. 4. MINIMUM WAGE CAN GO HAND IN HAND WITH COLLECTIVE BARGAINING Collective Bargaining Agreement (CBA): CBAs determine terms and conditions of work and regulate relations between employers, workers and their organizations at company level Minimum wage does not undermine collective bargaining, but may strengthen and complement it Minimum wage can provide the legal basis for CBAs

  8. 5. MINIMUM WAGE HAS TO BE ROOTED IN A RIGHTS BASED APPROACH Be careful not to exclude certain categories of workers and by that make them even more vulnerable It has to support decent work How do we cover informal workers? „Lighthouse Effect“

  9. THANK YOU! FURTHER READINGS: - Minimum wages (Minimum wages) (ilo.org) - Winning a pay rise: union strategies for securing minimum living wages - International Trade Union Confederation (ituc-csi.org) - About FES Rwanda: Friedrich-Ebert-Stiftung Rwanda Office (https://rwanda.fes.de)

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