ILO and BMZ Launch the SAW-A Project to Establish Fair Wages in Ethiopia’s Agriculture Sector

This groundbreaking initiative aims to promote fair wage policies, enhance collective bargaining, and support the establishment of minimum wage mechanisms to improve livelihoods and working conditions for agricultural workers.

The International Labour Organization (ILO), in collaboration with the German Federal Ministry for Economic Cooperation and Development (BMZ), has officially launched the Setting Adequate Wages in Agriculture (SAW-A) Project in Ethiopia. This groundbreaking initiative aims to promote fair wage policies, enhance collective bargaining, and support the establishment of minimum wage mechanisms to improve livelihoods and working conditions for agricultural workers.

Addressing Wage Gaps in Ethiopia’s Largest Employment Sector

The launch event, held in Addis Ababa, convened government representatives, employers' and workers' organizations, development partners, and key stakeholders dedicated to improving wage structures in Ethiopia’s agricultural sector. Agriculture remains Ethiopia’s largest employment sector, accounting for over 80 percent of the national workforce. However, many workers in this field still experience low wages, informal employment, and inadequate social protection.

In his opening remarks, Khumbula Ndaba, ILO Country Director for Ethiopia, Djibouti, Somalia, Sudan, and South Sudan, emphasized the importance of wage fairness as a pillar of social justice and economic sustainability:

“Social justice is not just a principle—it is a promise. Fair wages and decent work ensure that no one is left behind in the pursuit of economic progress.”

Ethiopia remains one of the few African countries without a national minimum wage, making agricultural workers particularly vulnerable to low pay and poor working conditions. The SAW-A project aims to fill this gap by establishing statutory minimum wages based on comprehensive economic data, cost-of-living assessments, and industry-specific indicators.

Strengthening Wage-Setting Mechanisms and Global Compliance

The SAW-A initiative will also play a crucial role in ensuring Ethiopia’s agricultural sector meets international labor and supply chain due diligence requirements, particularly aligning with the European Union’s Corporate Sustainability Due Diligence Directive (CS3D). This will enhance Ethiopia’s export potential in critical industries such as coffee and horticulture by ensuring compliance with fair wage practices.

During the event, Guillaume Delautre, SAW-A Project Manager, reinforced the economic necessity of fair wages:

“Fair wages are not just a moral imperative but an economic necessity. By ensuring that agricultural workers receive wages that reflect both their needs and economic realities, Ethiopia can create a more resilient and productive agricultural sector.”

Dr. Tekalign Ayalew, CEO of Labour Affairs at the Ministry of Labour and Skills, underscored the importance of tripartite collaboration—bringing together the government, employers, and trade unions—to implement sustainable wage policies:

“A sustainable wage policy requires collaboration. Strengthening partnerships between government, employers, and trade unions will ensure that fair wages are implemented across all sectors, improving the livelihoods of workers nationwide.”

Project Focus Areas and Expected Outcomes

The SAW-A project will focus on three primary objectives:

1. Setting a minimum wage based on economic and social indicators to ensure fair compensation for agricultural workers.
2. Strengthening collective bargaining mechanisms by equipping social partners with the necessary data and negotiation tools.
3. Enhancing compliance with wage policies to align with international labor standards and ensure fair wage implementation.

Additionally, the project will explore the concept of living wages and living incomes, particularly for smallholder farmers and self-employed workers, ensuring that economic growth translates into real improvements in living standards.

A Unified Commitment to Fair Wages

During the event, representatives from employer and trade union organizations expressed their strong support for the SAW-A initiative and the realization of a statutory minimum wage in Ethiopia. They reaffirmed their commitment to collaborating with the government and international organizations to create a fair, equitable, and sustainable wage system.

Looking Forward: A Path to Social Justice and Economic Equity

The launch of the SAW-A project marks a critical step toward achieving fair wages and social justice in Ethiopia’s agriculture sector. Through rigorous research, policy analysis, and capacity-building activities, ILO and its partners will ensure that Ethiopia’s wage-setting mechanisms are evidence-based, sustainable, and aligned with global labor standards.

ILO remains dedicated to its mission of ensuring that the benefits of economic progress are shared equitably, leaving no worker behind. With the successful implementation of SAW-A, Ethiopia is set to pave the way for a fairer and more resilient agricultural workforce, contributing to long-term economic stability and social justice.