A woman in Africa is harvesting large, ripe orange cocoa pods from a tree in a lush green plantation.

Projet SAW-A

Setting Adequate Wages - a focus on agriculture in Côte d'Ivoire

Context

In Côte d’Ivoire, many workers continue to earn very low wages. More adequate wage-setting mechanisms, including statutory minimum wages and collective wage bargaining, offer significant potential to address this challenge.

In 2023, the Government of Côte d’Ivoire increased the minimum wage in non-agricultural sectors (SMIG) from CFAF 60,000 to CFAF 75,000.

However:

High inflation in recent years has limited the impact of the minimum wage increase on the living standards of workers and their families.
The agricultural minimum wage (SMAG) has not been increased and remains at its 1996 level (CFAF 22,500).
The high incidence of informality is also one of the most significant challenges to compliance with minimum wages.

In this context, funded by the Government of the Federal Republic of Germany, the project Setting Adequate Wages: a focus on agriculture (SAW-A) in Côte d’Ivoire supports the strengthening of wage-setting mechanisms by making greater use of data and evidence on the needs of workers and their families, as well as on economic factors.

The project also helps identify national factors and conditions that should enable future wage increases and supports measures aimed at increasing productivity in selected value chains. Finally, the project contributes to raising awareness among national stakeholders on the issue of living wages, provides technical assistance to constituents in this regard, and engages with existing initiatives in the field to promote alignment with ILO principles.

Pillar 1: Support wage-setting mechanisms for agricultural workers

Minimum wages are set based on relevant indicators that take into account the needs of workers and their families, as well as economic factors.

Activities:

Mapping of the wage-setting system in Côte d’Ivoire.
Estimation of living wages using the ILO methodology.
Workshops and training on the use of data and evidence to set adequate wages.
Support for the establishment of a collective bargaining agreement in the dessert banana sector.

Social partners use information on workers’ and families’ needs and on economic factors to conduct relevant and informed collective wage negotiations.

Activities:

Review of collective wage bargaining and training to strengthen capacity to negotiate adequate wages.
Knowledge exchange and South–South capacity-building activities.

Minimum wages and negotiated wages are promoted.

Activities:

Studies and information campaigns on minimum wages aimed at promoting their effective application.
Exchange of international experiences on labour inspection practices to ensure compliance with wages.

Pillar 2: Support wage growth in agricultural enterprises and increased incomes for agricultural worker

Intervention result 2.1.
Intervention result 2.2.

Economic factors, including productivity, are identified and improved in the selected sectors and enterprises.

Activity:

Assessment and training on the factors that determine productivity and wage improvements in selected supply chains.

Governments, employers, and workers have a better understanding of macroeconomic factors and institutions influencing wage and labour income trends.

Activities:

Technical analyses of economic factors contributing to wage growth.
Review of price-setting systems in selected supply chains (cocoa, cashew nuts, and bananas) in Côte d’Ivoire and in other reference countries.
Workshops to disseminate research findings on macro-factors affecting wage growth and to provide technical training based on this evidence.
Establishment of social dialogue platforms in the agricultural sector.

Pillar 3: Cooperate with living wage initiatives in line with ILO principles

Intervention result 3.1.
Intervention result 3.2.

International and national initiatives on living wages/incomes are informed by the needs of workers and their families and combine this with an understanding of economic factors in wage promotion.

Activities:

Conduct research and raise awareness on living wages.
Development of a framework and guidance documents on living wages in the national context of Côte d’Ivoire.

International and national living wage initiatives are aligned with relevant ILO principles.

Activity: