Trade Unions request PM to focus on interest rate cut


2019-02-16 10:00 GMT+8


Prime Minister Khurelsukh Ukhnaa and the Minister of Labor and Social Protection Chinzorig Sodnom received the representatives of the Confederation of Mongolian Trade Unions (CMTU) yesterday. The CMTU officials requested the PM to focus on lowering the interest rate.

After highlighting the fact that the economy grew by 6.4 percent and the improving budget balance under the Extended Fund Facility program of the International Monetary Fund, the PM noted to focus on distributing the benefits of the economic growth to the public by increasing wage and pension. He addressed, “The average salary of the public sector reached MNT 916,000, a 27.5 percent growth since 2016.

Under the trilateral agreement, the minimum wage has been set at MNT 320,000. This raised the salaries of about 100,000 workers by 33.3 percent. Furthermore, the Cabinet has acknowledged the CMTU suggestion on setting minimum pension age in line with the life expectancy and lowered it to 60 for men and 55 for women, from the initial plan of 65 for men and 60 for women. The Government is prioritizing to strengthen social justice, improve accountability and discipline of the public sector, and economic growth.”

In turn, the President of the CMTU Amgalanbaatar Khayankhyarvaa requested the PM to further raise wage and implement social partnership in provinces and rural areas as agreement on the 2019-2020 Labor and Social Consensus. He then asked the PM to promote employment and cut the interest rate.

Later on, a spokesperson of the trade union of Uvs province suggested the PM to conduct a study on  a 5-10 year intensified development and highlighted the importance of non-collateral discounted loans for small and medium-sized enterprises (SMEs).
Trade Union of EMC suggests employee stock option

A spokesperson of the trade union of the Erdenet Mining Corporation (EMC) suggested granting the 10 percent of the company’s stake as stock options to employees in order to boost productivity and set an example for both stateowned enterprises and private entities.

• CMTU President requests the PM to further raise salaries. 

• Trade union of Uvs province suggested the PM to conduct a study on a 5-10 year intensified development and highlighted the importance of non-collateral discounted loans for SMEs. 

• PM expresses to further study the suggestions and make effort in implementing them.

PM Khurelsukh responded, “Unless we move away from the heavy dependence on the mining sector, Mongolia could face another economic crisis. Therefore, the Cabinet is prioritizing the development of SMEs, animal husbandry, and farming. The biggest challenge is unemployment. The State will support business entities. It is important that we govern our natural resources.

Thus, we will nationalize the illegally privatized assets. Establishment of the oil refinery will help reduce the foreign exchange outflow and cut domestic oil prices. As for all your suggestions, we will further study these matters and make effort in implementing them.”

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