Productivity to Overcome Generalized Assistance

Title: Productivity to Overcome Generalized Assistance

Content: The Minister of Labor, Reza Uteem, announces a break from the previous decade, emphasizing added value and labor law reform.

The year 2026 is set to be a significant economic and social turning point, albeit accompanied by painful trade-offs. This was the conclusion reached during the program "At the Heart of the Info" on Radio Plus, Wednesday, where Minister of Labor and Industrial Relations, Reza Uteem, defended the government's vision against trade unions and civil society. Joining remotely, Reeaz Chuttoo, president of the Confederation of Workers from the Public and Private Sectors (CTSP), Suttyhudeo Tengur from the Association for the Protection of the Environment and Consumers (APEC), and Michael Atchia from Democracy Watch Mauritius raised crucial questions to the minister, mediated by journalist Jane Lutchmaya.

The government's message is clear: public finances must be sanitized. "After a decade of measures deemed expensive and poorly targeted, the executive claims a break. 2026 will primarily be the year of the economy.

We can no longer continue with a logic of generalized assistance," asserts Reza Uteem, referencing the modus operandi of the "old regime that over-indebted the country to please the population." According to him, this transition must pass through productivity, added value, and reducing dependence on imports.

For trade unions, the labor market is the weak link in the current model. Reeaz Chuttoo presents a harsh assessment: "Justice delayed is justice denied." The slowness of procedures and the ineffectiveness of laws undermine workers' trust. He denounces a persistent stigmatization of Mauritian workers, the latest Pay Research Bureau report, downward pressure on wages, and excessive reliance on vulnerable foreign labor without real union protection.

The minister recognizes the dysfunctions and promises a profound reform of labor law: clarification of the 40-hour work week, regulation of telework, parental leave, redefinition of the threshold and status of the worker, and the creation of independent disciplinary committees. The Labor Conference will soon move "from dialogue to action," he assures.

Reforming a "Low-Value Added" Model

With the exodus of youth, refusal in certain sectors, and nearly 10% of the labor market composed of foreign workers, the system shows its limits. For Reza Uteem, reform is urgent. "Foreign labor has become a symptom of a low-value added economic model," he states.

Processing files in bulk with the Economic Development Board, digitization of permits, enhanced inspections with the Employment Bureau, combating exploitation, and a zero tolerance approach towards human trafficking are among the announced measures. In parallel, with the National Agency for the Treatment of Drug Control, a zero tolerance stance on drugs, crime, and social and professional reintegration are also on the agenda.

The minister took the opportunity during the show to send a message to employers: "They must also think about modernizing their sectors. The Mauritian worker wants to be employed in value-added positions."

The Debate on Social Assistance

Another central debate: the effectiveness of social assistance. Suttyhudeo Tengur advocates for a change of direction. "Universal assistance is costly and sometimes benefits those who do not need it. Targeting has become essential," he argued. However, the minister defended universality as a safeguard against social stigmatization, while also discussing hybrid solutions, such as "food vouchers." Nonetheless, all agree on one strategic priority: food security and import substitution.

Finally, Michael Atchia, presenting the 2050 vision of Democracy Watch Mauritius, warned against a policy driven by urgency. "Without long-term vision concerning energy, water, food, and training, the reforms of 2026 will remain fragile," he cautioned. The minister nodded in agreement: "Without energy security, without solid infrastructures, and without trained and respected workers, no sustainable development is possible." This statement was followed by a promise that "the government guarantees low-cost energy production."

The year 2026 is shaping up to be one of crucial choices. The end of assistance, the revival of productivity, and labor law reform: the country must reinvent its economy.