Agreement in Tunisia to raise public sector wages over the next three years

Tunisia – Reuters
The Tunisian government and the General Labor Union have reached an agreement to raise public sector wages by 3.5 percent over the next three years, as part of talks on broader economic reforms aimed at securing a financial bailout external, the official news agency and union sources said Wednesday.
They added: “The deal will increase the wages of state employees by 3.5% per year between 2023 and 2025, a step that could alleviate growing social and economic tensions.”
The unionists said the agreement will be signed tomorrow, Thursday, without going into details.
It is not yet clear whether the deal will also include spending cuts on government subsidies and heavily indebted state-owned enterprises, as requested by the IMF.
The Tunisian general labor union, which claims to have more than a million members and has demonstrated its ability to shut down key sectors of the economy with strikes, has previously rejected plans to cut subsidies or restructure loss-making state-owned companies through privatization.
The Tunisian government is seeking a loan from the International Monetary Fund to help finance its budget and wants to introduce reforms that show donors that they put its public finances on a sustainable path.
The International Monetary Fund says the government needs a formal reform agreement with the Tunisian General Labor Union before approving the loan program.
Other major donors from Tunisia have said they will not provide budget support unless the government enters an International Monetary Fund program.
Tunisia is already addressing a shortage of some subsidized goods in stores across the country, which the president blamed on speculators, but trade unionists said it was due to difficulties in paying for imports.

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