The Reform of the Wage Determination Mechanism in the Mauritian Public Sector: An Academic Perspective

Abstract

The paper is based on a study carried out in the small island of Mauritius and looks at the reform in the wage determination mechanism. The data are obtained from a combination of interviews, as well as, desk research on the relevant work done in the island. The data reveal that all parties and partners, that is the State, the  Trade Unions as well as the Employers are aware of the limitations of the existing wage determination  mechanism in the public sector. However, there are differences between the different parties about what type of reform is required and acceptable. The need for reforms in the wage determination mechanism in the public  sector in Mauritius is looked into, bearing in mind the background of the island. The changes in the economic structure, mainly from an agricultural based economy to a service based economy have highly influenced the work environment, as well as, determined the expectations of employees. The social and political structures  have also been key determinants in understanding the need for reform in the wage determination mechanism.

Keywords: Wages, Wage Determination Mechanism, Pay Research Bureau, Motivation, Public Sector