Moroccan Labor Union demands wage hikes, pension increases in first round of social dialogue

In the opening session of the new round of social dialogue held Tuesday in Rabat, the Moroccan Labor Union (UMT) called on the government to grant a new general wage increase and to raise pensions for retirees, citing the worsening cost of living.

Meeting with government officials and the General Confederation of Moroccan Enterprises (CGEM), the UMT delegation argued that the wage raise agreed upon in April 2024 had already been eroded by persistent inflation. “The previous increase has lost its impact due to the successive surges in prices,” union leader Miloudi Moukharik said.

The session, which also focused on pension reform, saw UMT voice strong concerns over what it described as a “dire” situation facing retirees. The union stressed the need to increase pension payments, many of which fall below the minimum wage, despite retirees’ decades of service to the national economy.

“This segment of the population lives in extremely difficult conditions,” said Moukharik, emphasizing that pensions have remained stagnant for years.

UMT also renewed its demand for income tax relief, arguing that Morocco’s payroll tax remains high compared to many Mediterranean countries. Despite tax reduction measures introduced last year, Moukharik said workers continue to face heavy burdens.

Additionally, the union called for higher family allowances, stating that the current amounts are inadequate to cover basic expenses such as healthcare and education.

The UMT delegation submitted a draft bill to the government aimed at institutionalizing social dialogue, saying the move would end what it described as the “arbitrary behavior of some ministers” and ensure consistent, structured negotiations. The bill also seeks to address stalled sectoral talks, particularly in critical areas like education, healthcare, and local government.

The union further demanded urgent protection of trade union freedoms, condemning what it says are violations by certain employers and issues related to the processing of union registration receipts.

As Morocco faces growing social and economic pressures, the outcome of these negotiations will be closely watched by workers across sectors. The next rounds of dialogue are expected to tackle key issues related to pensions, taxation, and labor rights.