Maputo — Mozambique's largest trade union federation, the OTM, is seriously worried at the failure of companies to channel their workers' social security contributions to the National Social Security Institute (INSS).
Speaking at a meeting to draw up a balance sheet on trade union activities in 2002, OTM chairman Amos Matsinhe declared "the social security system remains a factor of discontent among the workers".
Currently, there are 380,083 workers registered with the INSS. They are entitled to social security benefits - but only if the money discounted from their wages actually finds its way into the INSS coffers. And the shocking fact is that most employers prefer to steal the money.
Only 136,497 workers (35.91 per cent) are up to date with their social security contributions, and thus eligible for benefits. Money from the other 64.09 per cent has not been transferred to the INSS.
For years the OTM has drawn the government's attention to this form of theft, whereby social security contributions are deducted at source, from the workers' wages, but are not transferred to the INSS. And year after year, the situation worsens, as more employers join in the racket.
Matsinhe said that the total debt of these companies to the INSS was now more than 28 billion meticais (almost 1.2 million US dollars). He said the OTM is committed to step up activity designed to persuade the debtor companies to pay up. But it is unlikely that mere moral persuasion will have much effect. Employers have learnt that the Mozambican justice system is so lethargic, particularly when it comes to labour law, that they are most unlikely to be dragged before the courts for defrauding their workers. Matsinhe also noted that in 2002 the economy continued to grow at a rapid pace (12 per cent, according to the government), and the main macro-economic indicators remained stable. This resulted from increased production and productivity from the workforce - yet the workers were seeing few benefits.
"As workers, and builders of the national wealth, we remain dissatisfied with our quality of life", he said. "Although the economy is growing, we remain concerned at the level of absolute poverty in the country".
The statutory minimum wage was increased every year, yet any gains obtained were eroded in the following months by price rises, claimed Matsinhe.
