Ethiopia’s agricultural sector is blossoming, with horticulture emerging as a powerful driver of economic development. This dynamic industry is creating jobs, empowering communities, and contributing significantly to foreign exchange earnings.
The horticulture industry offers a diverse range of Job opportunities for Ethiopians of all skill levels. From specialized graduates to general workers, over 200,000 jobs have been directly and indirectly created. Notably, 80% of these opportunities are filled by women, fostering greater gender inclusivity.
As demand for fresh produce, flowers, and ornamental plants soars globally, Ethiopian horticulture is not only just ensuring food security, but also catalyzing sustainable employment. Recognizing the importance of fair wages, the Ethiopian Horticulture Producer Exporters Association (EHPEA) has established a pioneering cluster-based minimum wage system in Ethiopia.
In the absence of a national minimum wage threshold, EHPEA, in collaboration with the Ministry of Labor and skill and trade unions, has implemented a system where farms within specific clusters collectively set fair and standardized minimum wages. This approach ensures equitable compensation that reflects the cost of living, local economic realities, and the nature of horticultural work.
The introduction of the cluster-based wage system has led to a significant increase in the average wage within the sector.
EHPEA’s cluster-based wage system serves as a leading example for addressing the lack of a formal minimum wage threshold. Through an inclusive and participatory process, involving farm management and worker unions with the witness of EHPEA and The Federation of Farm, Plantation, Fishery & Agro-industry Trade Unions (NFFPFATU), the annual minimum wage is determined, considering factors like farm performance, inflation, and cluster-specific living standards.
Ethiopia’s bargaining horticulture sector offers a compelling story of growth, empowerment, and responsible practices. By prioritizing fair wages and fostering a collaborative environment, EHPEA is paving the way for a sustainable and thriving future for this vital industry.
Source credits: https://ehpea.org/