Africa-Press – Cape verde. Low wages, compared to the cost of living practiced, for example, in Sal and Boa Vista, combined with precarious contracts, lack of compliance with the Labor Code and “disrespect” by workers, are some of the reasons that can lead many to embrace the opportunity to work in the Algarve (Portugal), in the tourism sector. However, it is necessary to guarantee “good contracts”, and the search for better living conditions is legitimate.
The controversy surrounding concerns about the “leakage” of qualified human resources from the national tourism sector to work in the Algarve Region, in Portugal, focuses, for many, on an essential issue that is the low wages practiced in Cape Verde. .
This has been one of the biggest outbursts of workers and civil society on social media.
Especially in Sal and Boa Vista, if we take into account the cost of living on these two islands, which are the two biggest ports of entry for tourists in the country, and where, for example, essential goods come at higher prices.
This is compounded by precarious contracts, the lack of compliance with the Labor Code and “disrespect” by workers, especially on the part of large hotel chains, as we will see throughout this report.
This, not to mention the loss of purchasing power of workers, as a result of two years of pandemic and, now, the effects of inflation caused by the war in Europe.
The topic is, therefore, far from being peaceful, it diverges opinions, and has caused a lot of ink to flow on social networks and beyond.
If, on the one hand, companies do not want to lose the qualified workforce, in which they have invested and which they need to regain competitiveness in the upcoming high season, on the other hand, workers are naturally tempted to seek a better life. better outside.
Skilled labor leak
The Cape Verde Business Association, based on the island of Sal, and which does not represent large hotel chains, but small operators, was one of the first to publicly show its concern about this imminent flight of qualified labor from national tourism. for the Algarve Region, in Portugal.
As is well known, that Portuguese destination is desperately looking for qualified human capital to meet the tourist demand.
In fact, the Portuguese Secretary of State for Tourism, Rita Marques, recently said that Portugal needs between 45 and 50 thousand workers in tourism.
In relation to Cape Verde, they initially estimated between 2500 and 5000 thousand hiring vacancies.
Numbers that sounded the alert of the sector’s business community. In fact, the Cape Verde Business Association itself publicly warned the Government of the danger that this flight of human resources could jeopardize the recovery of Cape Verdean tourism, which is underway, in the height of the approaching high season.
Minimum wage should be in accordance with the cost of living in each region
Asked about the issue of low wages in the sector being one of the most cited reasons for a possible departure of human resources from national tourism, heading to the Algarve, Andrea Bonelli admitted that it was a legitimate claim.
The same said he agrees with the need to “review” the national minimum wage, so that it is “fair” and “not the same at the national level”. In other words, in practical terms, this association argues that the minimum wage should be “parameterized” according to the cost of living by region.
“Although the current minimum wage (13,500$00 for the private sector) makes sense in less developed regions, it does not even represent a useful amount to pay rent in more expensive regions, such as the island of Sal or Boa Vista”, he assured.
Equity in purchasing power
This association argues, therefore, that the first step should be “to guarantee the same purchasing power to all Cape Verdeans”. This is because, as he justifies, the salary increase, or readjustment, ends up generating more economic dynamics.
“It is economically proven that a country’s economy works better when wages are higher, as the increase in purchasing power allows greater circulation of money for the benefit of non-essential goods and services”, he argues.
The question of salary increase or readjustment must be fixed by everyone.
“In principle, therefore, we agree that there should be a review of wages at the national level and, in this sense, we invite unions to act in harmony with the private sector to find assertive measures”.
This official calls for greater consideration of the sectors that boost the local economy and not “just the large tourist establishments”.
Emigration does not depend only on salary
However, the issue of emigration does not depend only on salary, there are other criteria that lead people to seek better living conditions.
“We have already had the opportunity to interview Cape Verdean staff and employees who recognize that there is much more to the opportunity offered by the Algarve (than the salary). Especially because, most of the time, expectations are to receive a minimum wage, which does not change the quality of life itself, taking into account the cost of living in the Algarve”, he explains.
What makes the difference, he says, are above all the opportunities and public services offered in Europe.
“The public services offered by Cape Verde have no comparison with those of Europsa and, to have a quick idea, just think about public health, food prices, school training, public transport, telecommunications and freedom of mobility in any country in the world. world”.
These, he says, are conditions that “do not depend” on the private sector, and where, currently, “we cannot be competitive”.
Importance of the sector
Andrea Bonelli reiterates that Cabo Verde Empresas has “nothing against” the departure of citizens in search of a better life, but that its concern, as he explains, is related to the impacts that this can bring to the competitiveness of tourism.
“However, we must express our concern for the shock that the loss of thousands of trained and experienced employees and staff would entail for a strategic sector for the country’s development, capable of producing 25% of the Gross Domestic Product (GDP) and contribute more than 45% of the State’s revenues, that is, Cape Verde’s main contributor”.
public-private dialogue
In this context described above, Andrea Bonelli says he believes in a “negotiated” solution regarding the contracting of Portugal, which he claims is “an important partner” of Cape Verde.
“Therefore, we have no doubt that the intentions are the best, so we invite the respective Ministers with competence in the matter to develop an action plan that is reasonable for the private sector and workers, capable of avoiding unwanted shocks and accelerating investment in the training of staff and employees to replace those who will emigrate”.
This official shares the opinion that a foreign mission offering vacancies to Cape Verdean workers should “always be negotiated” with the private sector.
“To increase the bargaining power of state institutions in negotiations with mission representatives, but above all to protect the economy of a small country in terms of population and scale”.
As he concludes, we are a country with scarce resources, “so we have to “pay attention to the dynamics that affect us and anticipate trends through public-private dialogue to support concerted decision-making, especially when they affect strategic sectors”.
Consultant questions the way Cape Verdean labor is exported to the Algarve
Amílcar Aristides Monteiro, public development policy consultant and vice-president of the Cape Verde Business Association, has a very critical view of Cape Verdean labor exports to the Algarve.
The same begins by saying that it may be a “good” proposal, but the way it is being introduced is “strange”.
“In any country in the world, when there is a high level of economic freedom, States make agreements and create multilateral relations, through the WTO, or bilateral ones, such as Cape Verde and Portugal”, he begins by saying, to question that he does not know until what At this point, the relationship between Cape Verde/Portugal is at a level where entities of the Portuguese State can enter Cape Verde and hire labour, “and leave without an agreement”.
“Clearly, the government wants to solve the problem of the unemployed, but the unemployed in the tourism sector are few, they are rare. Anyone who graduated to work in the hospitality industry is employed, so it’s strange for this to happen without a counterpart,” she interjects.
Better quality of life?
In addition to the more attractive salary issue, he also asks “how are they going to live, how are they going to live in Portugal?”. This is because, as he argues, it is not just a salary issue.
“Arriving in Portugal and earning a minimum wage may not represent a better quality of life than living in Cape Verde”, he analyses.
“And it’s not the first time this has happened in our history. From the São Tomé contractors, there are several hiring stories that later turn out to be much less attractive than the initial proposal. People have to go there to live the experience….”, he warns.
“It’s a cheap workforce, which will accept twice the salary, around 700 euros, which may seem much better, but that’s not the only issue”, he continues.
collective agreements
In this context, he defends the negotiation of collective agreements, compensation for the State and compensation for companies.
“There could be a program for rotating trainees between the Algarve and Cape Verde, at the management and operational levels, and many other counterparts”.
Monteiro warns that this salary issue is not just in tourism, it exists “in all areas”, in Cape Verde, where people pay poorly. And he asks: “So are we all going to emigrate?”. “I don’t see it as a linear issue. If there is an interest on the part of one party, the State must sit down and negotiate”.
According to him, Cabo Verde Empresas has two proposals.
“One that, for every hired workforce, one is trained in Portugal. Portugal has been giving scholarships to Cape Verde for a long time, so that would be reasonable. The other has to do with social security”.
On the other hand, he warns, Cape Verdean companies also need manpower.
“Those who are unemployed will not be hired because they do not have the necessary qualifications. In the hotel industry, nobody works without qualification and you don’t find this type of professional in the market like that, spontaneously”, he warns.
Authenticity of destination
His concern is that companies are exposed to the reality of someone coming to get their best professionals. “Then they can’t restore that quality in a short time”. Amílcar Aristides Monteiro warns that the situation created could be a snowball.
“Because the cream comes out, and then what’s left doesn’t have the necessary quality, the destination gets cheaper and the State doesn’t win. If we don’t open our eyes, it’s a lose-lose”.
The same recalls that about 90% of the workforce in the sector is national and that, decreasing to 60%, the destination becomes less authentic.
“Coming here or going to Senegal will be the same. You can trivialize your destiny and you can lose the differential”. However, he admits that, for workers, the opportunity can be interesting, because they can “take advantage” to demand better salary conditions.
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