Government and nation’s largest union hope new wage pact will ease economic tensions

Tunisia’s government and the country’s most powerful labor union- called the UGTT – agreed Wednesday on a pact to increase public sector wages by 3.5 percent over the next three years.

The deal-which also covers state pensions–comes after marathon talks between the administration of President Kais Saied and the unions over broader reforms to meet the demands of the country’s biggest lenders, including the IMF, as the troubled North African economy seeks external financial help.

Tariq Al-Saidi, an analyst with a UGTT union-affiliated newspaper, told A24 that the agreement will enhance employees’ purchasing and shows that workers are doing their part to help restructure Tunisia’s economy.

However, some union members are criticizing the agreement saying the pay hikes are a minuscule match for the country’s inflation rate, averaging as high as nearly ten percent a month.