Mauritius | Finances

August 02, 2013

The Employers Did the Math - Bus Ticket: Additional Rs 20 million Per Month

The increase in bus ticket cost Rs additional to the private sector every month 20 million, according to a first estimate of the Mauritius Employers' Federation. Some firms have already announced that they now encourage the recruitment of people who live near them.

It's time for calculations in business since the new rates for the bus ticket was unveiled. "We must find additional Rs 10,000 every month to pay our employees," said a hotel in Flic-en-Flac. At Ganga Textiles, transportation costs will increase from Rs 15,000 to Rs 19,000 per month. As for Amar Deerpalsing, president of the Federation of SMEs, which has thirty employees, it must find additional Rs 11,000 every month.

If it was not until the end of August that the real cost of higher bus ticket is known, the Mauritius Employers' Federation (MEF) has already made a preliminary estimate. "This decision will cost Rs additional to private each month 20 million," said Pradeep Dursun, Industrial Relations Adviser 'to the MEF.


"This is a significant increase in tourism especially as the industry is not doing well industry" suggests a tour operator. For Kevin Ganga Ganga Textile director, this increase is "significant in that we do not have enough control now." "This is far from good news given the challenging economic environment. What bothers us most is that the increase is double or triple, if an employee performs two or three trips each day. This will weigh heavily on the wage sheet "adds Amar Deerpalsing.

This decision will, however, not without consequence. "We should expect that employers favor Mauritians who live closer to the company. All Mauritians do not will have the equal chance to get a job, "warns Amar Deerpalsing. In fact, some companies have already made decisions that go in this direction.

"We now intend to recruit only people who live near the hotel or in Flic-en-Flac or Bamboo. We do not recruit people in Rose Hill or of Quatre-Bornes, "said a hotel. Ganga and Kevin added: "If we in the future recruit people, we will opt for foreign workers who return to us cheaper. We do not have to pay for transportation as they will be housed in a dormitory next to the factory. "

Another impact: "The fact that our costs increase, the finished product will be more expensive and it is the consumers who will pay the price. On the other hand, with the increase in our operating costs, we will become less competitive because our products are more expensive than imported products, "emphasizes Amar Deerpalsing. Other companies will, in turn, revise downwards their profit margin.

"With the tough competition prevailing in the construction and the current economic gloom, we can not pass on these costs to our customers, in contrast to large operators. We have trimmed our profit margins to remain competitive, "says Gerard Uckoor, president of the Association of small construction contractors. 

 

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