All workers hired by labor agencies to work for different organizations in Addis Ababa are not being paid as per the provisions of the directive enacted to govern such matters, a new study has revealed.
The study has been conducted by the Ministry of Labor and Social Affairs, the Confederation of Ethiopian Trade Union, Ethiopian Employers Confederation, Addis Ababa Trade Bureau and other stakeholders. It was undertaken to evaluate 314 agencies licensed to operate in Addis Ababa and determine whether they function based on the rules and right procedures.
Of the licensed agencies, only 157 of them were found to be working at the location they submitted when they acquired the license, while the whereabouts of 71 agencies is unknown.
Even more, although 151 agencies have been licensed by the Addis Ababa Trade Bureau, only 86 of them acquired a license from the Federal Police Commission, Addis Ababa Labor and Social Affairs and the Trade Bureau, a rule which every agency is expected to comply with to be considered as a legal entity.
While all agencies were found to be working against the rules set to govern their relation with laborers, they have also been underpaying workers which they hired on behalf of their customers. Some have also been involved in illegal activities and crime, even tactically assisting robberies targeted against their clients, according to the study.
Even though most agencies can apply a better financial management system, few of them have a properly documented financial record of workers, including their salaries, income taxes and pension, whom they have hired for a third party.
“Learning from such experiences, we will apply more stringent measures afterwards. A supervision team will be formed to evaluate and follow-up the licensing process of agencies in the capital,” said ErgogeTesfaye, Minister of Labor and Social Affairs.