CGEM's 20 Proposals for Job Creation

The employment situation, and its corollary unemployment, as described by Jamal Belahrach, president of the Employment and Social Relations commission of the employers' confederation, is most worrying. The high unemployment rate among young people is compounded by the low capacity of businesses to create jobs in the absence of government incentives.

To reach a national pact, the employers' association sent a memorandum to social partners containing twenty proposals for job creation and unemployment reduction, which were unveiled yesterday in Casablanca.

Before unveiling its proposals to the press, the employment and social relations commission of the Moroccan General Confederation of Enterprises (CGEM), through its president, first painted a bleak picture of the Moroccan workplace.

"At war against unemployment"

In his opening address, Jamal Belahrach presented these figures which led him to say "there is urgency, because regarding employment we are at war".

Thus, the unemployment rate for young people (September 2010) is 17.6%, 15-29 year-olds represent 62% of the unemployed, and the activity rate is 49.9% (64% globally).

According to the speaker, and without considering the weight of the informal sector, there are currently constraints hindering job creation, which he summarized as follows:

• Mismatch between supply and business needs

• High payroll taxes

• Low business involvement in job creation

• Weak job support

• Insufficient flexibility of the Labor Code...etc.

Regarding this last point, the president of the employment and social relations commission within the employers' association considered it "very serious that out of the 11 million employees in the country, only one million are declared to the CNSS"

CGEM's 20 initiatives

While the speaker insisted on the need to instill a culture of training and internships within companies, he also recalled that the CGEM's objective is to establish a social dialogue between the various social partners in order to achieve a national pact that no longer makes the world of work precarious because, he assured, there is currently "organized precariousness (...) hence the need to observe economic civic duty".

To achieve this objective, contact has already been made with the Prime Minister's office, the Ministry of Labor and the Ministry of Economy and Finance. "If only 5 of our proposals are adopted by the government, we will have achieved our objective. We hope that concrete measures will be taken within the framework of the 2012 Finance Law".

Structured around three key areas: training, apprenticeships and recruitment support, the CGEM's twenty proposals are accompanied by conditions of application.

For example, the idea of creating a professional integration contract with a renewable 3-month probationary period (BAC+3 and above) is conditional upon a 50% reduction in corporate income tax (CIT), and the guarantee of all social rights, including retirement.

Another example: for the establishment of an integration contract for people with disabilities, the CGEM suggests that the government reduce the CIT of the total annual cost of the employee by 70% and guarantee social rights.

In conclusion, the speaker indicated that these proposals are only the basis for a debate that the CGEM hopes will be constructive, as there can be no economic development without social progress... And vice versa.

Published on February 1, 2011

Posted online on February 2, 2011

aufaitmaroc.com