Minimum Wage, Human Rights, and State Responsibility

The Case of Ethiopia

Abstract

Minimum wage is one of the major subjects of concern and debate for international institutions and national stakeholders. The primary objective behind the debate and concern over this subject is about protecting workers from poverty and exploitation.  More than 90% of ILO member countries have set a minimum wage for their workers. However, the notion of minimum wage is not without controversies.  Some developing States are reluctant to set a minimum wage and a few even argue against it stating that it would push away foreign direct investment (FDI) which has become a principal driving force behind job creation in these countries. On the other hand, the protagonists of minimum wage argue that minimum wage is a fundamental labor right which ensures adequate life for workers. 

While Ethiopia has not set a minimum wage for its private sector workers, it adopted a legislative framework in 2019 to set up a Wage Board which would determine minimum wages. Nevertheless, the State is not realizing the envisaged activities of the Wage Board which are expected to lead to a minimum wage regime. This, among other factors, is due to the fear that setting a minimum wage would adversely affect flow of FDI, job creation, and the country’s post war economy. Ethiopia is a party to the International Covenant on Economic, Social, and Cultural Rights where various rights including the right to a decent way of life, food, clothing, and housing are recognized as fundamental human rights. The paper raises the question as whether Ethiopia, by ignoring the question for a minimum wage law for private sector workers, is violating its obligations under international human rights law.  The paper further tries to answer this question by looking into the nature of economic, social, and cultural rights and analyzing States’ obligations under human rights instruments. In doing so, it employed a doctrinal approach to define the notion of minimum wage and to delineate the debate around the concept. It   then analyzes the stance of the Ethiopian government on the issue mainly from official speeches and commentaries that are publicly available in line with international human rights law and provide recommendations.