Trade Union Confederation meets IMF representatives to discuss salary increase

2018-07-31 15:01:35
Ulaanbaatar/MONTSAME/ Authorities of the Confederation of Mongolian Trade Union (CMTU) held a meeting with representatives of the International Monetary Fund (IMF) on July 30.

The meeting was attended by the President of CMTU Kh.Amgalanbaatar, CMTU Vice President S. Erdenebat and heads of the Trade Unions of Education and Science, Health Workers and Public Servants and by IMF representatives led by Resident Representative Neil Saker and Staff Team leader Geoff Gottlieb, who are here to conduct the fifth review of Extended Fund Facility arrangement.

CMTU President Kh.Amgalanbaatar said, “Over the past four years, the Government did not fulfill its duty reflected in the Trilateral Labor and Social Agreement on raising salary of public servants. We even understand well that the country’s economic situation was hard.” And he spoke in detail about previous negotiations for the Trilateral Labor and Social Agreement on raising salary of public servants.

“Since parties of the Trilateral Agreement-- the Government, the Mongolian Employers’ Federation and the Confederation of Mongolian Trade Unions (CMTU), did not still reach agreement on raising salary, the CMTU filed a labor dispute according to relevant provision of the Law on Labor.  The labor dispute ensures a legal right to organize a strike; thus we have decided to organize strike in public service or education, health and cultural sectors from September, 2018. We hope that current meeting between the Government and IMF within EFF will find effective solutions in increasing income of public servants through improving state budget spending, cutting unproductive expenses and adjusting the budget,” said Kh. Amgalanbaatar.

In addition, heads of the Trade Unions expressed their positions on raising salary of workers of health, education and cultural sectors.

In turn, Geoff Gottlieb, IMF Staff Team leader, said “I have a same opinion on two matters you said. First, it needs to find a source to raise salary and cut other inefficient expenses. Second, the government has a huge amount of debt, but the salary of public servants is very low. It is seen as a consequence of decisions made by previous governments over past years. So, the CMTU, government and our staff team should hold discussion to seek a solution on financial sources to settle this issue.”

It is essential to raise the salary financed from long-term, reliable source without increasing the government debt. The IMF does not stand against the increase of salary, but is for resolving the issue without causing budget deficit, pointed out Mr. Geoff Gottlieb.

In the end of the meeting, Mr. Amgalanbaatar said, “Any country has a possibility to increase the budget revenue and expend the budget effectively and optimally within the budget adjustment; thus the CMTU sees that Mongolian Government has to consider this potential. We have strongly condemned the Government for not raising the salary of public servants over the past four years.  Now, hope of people reached a critical point. Therefore, we would like to officially reiterate that the CMTU has decided to organize a strike this September.”