A National Pact for Employment... and After?
The CGEM is determined to seriously address youth employment. Due to the economic situation, the employer's confederation is taking a stronger stance than usual, as reflected in its tone. The mid-week meeting of the country's top business leaders made this clear.
Business leaders are no longer being coy. They now openly admit that in Morocco, employment issues haven't been seriously addressed until now. There's a growing awareness that economic development, attracting investors, and growth – priorities for the nation – inevitably require anticipating the education, training, and employability of young people. The 20 flagship proposals to boost employment, announced earlier this month by the CGEM, reflect this growing awareness within the employers' confederation. Few projects have received such rapid development. Following the announcement of these 20 measures, the employers' association is formalizing them into a pact to be signed by various stakeholders from the government. The organization has set a two-month deadline. Jamal Belahrach, president of the CGEM's Employment and Social Relations Commission, is expected to meet with the Ministers of Economic and General Affairs and his counterpart in the Employment department in the coming days. The bar has already been set: the minimum objective is to include five of the 20 measures in the 2012 Finance Act, assured Belahrach, on the sidelines of the presentation of the employers' employment measures.
Race Against Time
However, this race against time hasn't caught the attention of decision-makers yet. Several contacted individuals said they were unaware of the details of the 20 measures proposed by the employers' association. Furthermore, several proposals are drawing criticism (see sidebars). Six of the employers' proposed levers focus on training. The goal is to improve the match between skills and business needs, currently a major obstacle to the employability of young people entering the job market. Measures to address this skills gap include training vouchers for job seekers to access qualifying training to improve their skills. There will also be training vouchers for businesses, along with training tax credits, individual training leave, and funding for skills assessments for career changes. Another aspect of the pact involves strengthening ties between universities and the business world.
ANAPEC, a Key Player
Other aspects of the pact mainly involve hiring young people and promoting entrepreneurship. Measures in this area include creating a professional integration contract (CIP) for those with a Bachelor's degree or higher. The tax incentive for employers offering this contract would be a 50% reduction in corporate income tax on the employee's total annual cost. Social benefits are not compromised; this contract provides full social rights, including CIMR coverage, and lasts a minimum of 24 months. Another contract considered by the employers' association is a fixed-term first-experience contract (CPE) with a six-month trial period. This would offer a salary above the minimum wage, last a maximum of 24 months, and receive a flat-rate corporate income tax reduction of 15,000 DH per year per young graduate. Again, social rights are maintained, with the employers suggesting full social benefit payments. Furthermore, the CGEM recommends repositioning the current ANAPEC contract. The aim is to give employees a real status and not treat them as trainees. Operators have a defined wish list for the same ANAPEC contract. Currently, this contract is only accessible to members registered with the agency for six months; the wish is to make it accessible immediately upon graduation. Also, the benefits of the ANAPEC contract are currently only available for the first job. It is recommended to extend them for a given period. Finally, it is suggested to expand eligibility for ANAPEC contracts to older candidates without educational level restrictions.
Published February 25, 2011
Posted online February 28, 2011
