Port-Louis, Mauritius - Mauritian trade unions and employers have rejected a 5-percent salary compensation to workers offered by the government on Wednesday.
Deputy Prime Minister Paul Berenger had proposed the salary compensation at a meeting with trade-unions and employers in Port-Louis.
Berenger had said the compensation was calculated on the lowest basic salary, which stands at 3 200 rupees. (28.5 rupees = 1 USD)
"The government would not go beyond the 5 percent compensation," he said.
The offer was rejected by the trade unions and the Mauritius Employers Federation. Members of the Mauritius Labour Congress (MLC) disapproved the proposal and maintained their demand for the payment of full compensation of 600 rupees to every worker.
Rashid Imrith of the National Trade Union Congress (NTUC) quoted a survey conducted over the period 1995 to 2001 which showed household expenses have increased by 3000 rupees over that period.
For his part, François Woo of the MEF said employers would not be able to pay a 5 percent salary compensation.
He maintained that employers could at the most accept to pay a 4.4 percent compensation.