By: Getahun Tsegaye
Staff Reporter
Addis Ababa, Ethiopia – As Ethiopian workers gear up to commemorate the 50th anniversary of their national day, a shadow of financial concern looms large. A recent government directive proposing mandatory salary deductions for a newly established disaster risk management fund has ignited fierce opposition from the Confederation of Ethiopian Trade Unions (CETU), which warns that this measure will push already struggling workers to the brink of economic despair amidst soaring living costs.
The contentious draft law, currently under scrutiny by the House of Peoples’ Representatives’ Foreign Relations and Peace Affairs Standing Committee, mandates that both public and private sector employees contribute a portion of their monthly earnings to bolster the nation’s capacity to respond to recurring natural and human-induced disasters. While the government frames this initiative as a crucial step towards national resilience, for a significant portion of the workforce, the timing couldn’t be more precarious.
“We implore the government: do not place the weight of national crises squarely on the shoulders of workers who are already teetering on the edge,” pleaded Kassahun Follo, the impassioned President of CETU, during a press briefing held in Addis Ababa today. His voice resonated with the anxieties of countless Ethiopians as he articulated, “Our wages have stagnated while the cost of everything essential to life – rent, food, transportation – continues its relentless climb, effectively shrinking the real value of our earnings.”
In a nation where the average monthly public sector salary hovers around a meager 7,052 Ethiopian Birr (approximately $70 USD) – a figure that masks stark income disparities, with some earning as little as 3,482 ETB (around $27 USD) while high-earners might reach 27,010 ETB (about $211 USD) – and where inflation stubbornly hovers around 30% in urban centers, the daily struggle for survival is a harsh reality for many. A basic monthly food basket in the capital can easily exceed 6,000 birr, forcing countless individuals to juggle multiple jobs or rely on remittances from family abroad simply to keep afloat.
Kumneger, a public school teacher in Addis Ababa, voiced the stark reality faced by many: “We live hand-to-mouth. Even before this proposed deduction, my salary barely covered rent and feeding my children. Now, they expect me to give even more? For what future benefit when the present is so crushing?”
The relentless surge in the cost of living has been compounded by years of economic instability, a lingering consequence of Ethiopia’s devastating 2020–2022 civil war, disruptions to global supply chains, and widespread internal displacement fueled by ongoing conflicts. CETU emphasized that while the principle of disaster preparedness is sound, its financial burden should not fall disproportionately on the shoulders of the most vulnerable members of society.
During his address, a resolute Kassahun Follo outlined eight critical demands for improved working conditions and enhanced protections for Ethiopian laborers. Foremost among these was an urgent appeal for the government to engage in meaningful dialogue with labor representatives before imposing any new financial obligations on the workforce. “This year’s Workers’ Day will not be a joyous celebration,” he declared, his tone somber. “Instead, it serves as a stark reminder of the daily hardships endured by millions of workers across our nation.”
The trade union confederation further announced its intention to host a series of panel discussions on May 1st, Ethiopian Workers’ Day, aimed at highlighting the widening chasm between governmental policies and the lived realities of the working class. CETU has issued a strong appeal to lawmakers, urging them to reject the proposed directive in its current form and to instead engage in genuine consultation with labor representatives to explore more equitable and sustainable alternatives for funding disaster preparedness.
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