Research findings from a study conducted by the Ministry of Gender, Labour, and Social Development in some European countries have revealed that many countries lost multinational companies due to the introduction of the minimum wage.
According to the line minister Ms Betty Amongi, the report highlighted a number of issues that drove these companies from the host countries.
“This report was analysing what drives companies to move from countries where they are located. One of them was the cost of doing business which can include financing if you do not have cheap capital. The other aspect that made more people move is that labour is not only cheap but also skilled,” Amongi said.
These are some of the results of the ongoing stakeholder consultations launched after government deferred all discussions relating to the minimum wage until the next course of action.
In 2015, through a Private Members Bill by Workers’ MP Arinaitwe Rwakajara, the Minimum Wage Bill was introduced but not much transpired afterward.
It proposed among other things; Shs130,000 pay per month as the lowest pay for any worker including housemaids in full-time employment.