Addis Abeba – The Confederation of Ethiopian Trade Unions (CETU) has expressed serious concern over the “ongoing conflicts in certain regions” of the country, which it says have caused “extensive loss of life, injuries, and the displacement of citizens.” On behalf of the millions of workers it represents, CETU has called on all parties involved in these conflicts to adopt peaceful methods of conflict resolution “without any preconditions.”
In a letter dated 25 December, 2024, addressed to Prime Minister Abiy Ahmed, CETU emphasized the severe economic challenges that are currently “jeopardizing” workers’ livelihoods.
“We urgently demand a reduction in the income tax deducted from workers’ wages and various allowances,” the letter stated.
The confederation also called for the establishment and activation of a Minimum Wage Board, as outlined in Labor Law No. 1156. According to CETU, this board should consist of representatives from all three parties involved: the government, employers, and employees.
The letter was issued following CETU’s 20th regular general assembly, held on 18 December, 2024, in Addis Abeba. According to the confederation, the assembly included in-depth discussions on the nation’s peace situation and key issues affecting workers.
The letter emphasized, “We have conducted a thorough investigation into the irreparable damage caused by the ongoing internal conflicts in certain regions and areas of our country.” It continued, “These conflicts have resulted in the violation of workers’ right to life, the closure and destruction of businesses, and the subsequent job losses and economic hardships faced by workers.”
In light of these “conflicts, the resulting economic downturn, unbalanced foreign influences, and global geopolitical tensions,” CETU asserted that it has “observed firsthand how the daily escalating inflation and cost of living crisis have reached a point that low-wage workers and their families can no longer bear.”
The statement further noted that CETU, along with its nine member industrial trade union federations, over 2,300 primary trade unions, and millions of member workers, has been advocating for solutions to this crisis for an extended period.
It also highlighted that the confederation has been calling for the establishment of a legally recognized minimum wage system and a reduction in income tax to alleviate the financial burden on workers.
“We have even presented this request to the prime minister, who has indicated his support,” the statement said. “However, we are disappointed by the lack of any tangible response.”
This is not the first instance in which CETU has urged the federal government to reduce income taxes for fixed-income workers and implement additional measures to address the rising cost of living.
In November 2024, Addis Standard reported that the confederation submitted a letter to Prime Minister Abiy Ahmed, requesting urgent economic interventions to alleviate the financial challenges faced by workers.
CETU’s assessment is corroborated by a recent study conducted by the International Labor Organization (ILO), which found that the median monthly wage in Ethiopia is 3,000 birr. The study further revealed that low wages have contributed to widespread dissatisfaction, with 48% of workers in foreign-owned apparel firms leaving their jobs due to inadequate compensation.
The confederation has also advocated for the introduction of minimum wage legislation as a crucial intervention.
The revised labor proclamation, which was approved by parliament in 2019, established a board responsible for determining and revising the minimum wage. Following this, draft regulations outlining the powers and responsibilities of the board were prepared and submitted to the Council of Ministers.
However, the Confederation noted that no significant progress has been made since then.
In an interview with Addis Standard in July 2024, Kassahun Follo, President of CETU, who was re-elected during the recent 20th regular general assembly, revealed that the confederation has received no response from the government. AS
