Rwanda: Labour union advocates for unemployment benefits

By Emmanuel Ntirenganya

As the COVID-19 pandemic continues to weaken the economy forcing some companies to lay off employees, a labour union has proposed the establishment of an unemployment benefits scheme in Rwanda.

The suggestion comes one day ahead of the International Labour Day on Friday, May 1, 2020.

Through a statement it issued on April 29, the Labour Congress and Workers' Brotherhood in Rwanda (COTRAF) requested the Government to sign the international unemployment provision convention No 44 and implement it.

The move, the Union argued, would prevent adverse effects of other unexpected epidemics or pandemics on labour.

The Convention provides that in cases of partial unemployment, benefit or an allowance shall be payable to unemployed persons whose employment has been reduced in a way to be determined by national laws or regulations.

It stipulates that the right to receive benefit or an allowance may be made subject to compliance by the claimant with the conditions including the fact that they are capable of and available for work.

"This can be executed through setting up a department in charge of social security for workers who have been hit by unemployment," COTRAF's statement reads in part. "Like other schemes such as pension, the plan can get funds from contributions made by employees, employers as well as support from the national budget."

Dominique Bicamumpaka, the president of COTRAF, said; "There is a need to consider how to protect the people who unfortunately lost employment and wages or salary because of this pandemic, yet they do not have other source of livelihoods. People who lost jobs under such circumstances should be entitled to benefits as long as they seek other employment," he said.

Theoneste Ntagengerwa, the Spokesperson of the Rwanda Private Sector Federation (PSF), said the federation was examining the impact of the COVID-19 on the private sector workers countrywide so as to come up with comprehensive data on the issue.

Meanwhile, he said that tourism - one of 10 chambers that make up PSF - reported that 82 per cent of workers in the industry are currently laid off as a result of COVID-19.

"Even the 18 per cent that are still working now, are [mainly] owners of the tourism companies or businesses," Ntagengerwa said.

He said that the most affected businesses were public transport operators, tourism including hotels and tour guides, airlines and international travels.

Global outlook on COVID-19 labour impact

On April 29, the International Labour Organization (ILO) said that as a result of the current economic crisis, almost 1.6 billion informal economy workers, out of the global workforce of 3.3 billion, have suffered massive damage to their capacity to earn a living.

This, ILO pointed out, is due to lockdown measures and/or because they work in the hardest-hit sectors.

The first month of the crisis is estimated to have resulted in a drop of 60 per cent in the income of informal workers globally, ILO revealed.

This translates into a drop of 81 per cent in Africa and the Americas, 21.6 per cent in Asia and the Pacific, and 70 per cent in Europe and Central Asia.

The UN labour agency warned that without alternative income sources, these workers and their families will have no means to survive.

Losses in working hours in the first half of 2020

According to ILO Monitor dubbed COVID-19 and the world of work, third edition, global working hours in the second quarter are expected to be 10.5 per cent lower than in the last pre-crisis quarter.

This is equivalent to 305 million full-time jobs, which represents a significant deterioration on ILO's previous estimate of 195 million for the second quarter. This has been driven mainly by prolongation and extension of containment measures.

This article originally appeared in The New Times. [Photo: Sam Ngendahimana]