VICTORIA, Seychelles — The Ministry of Finance, National Planning and Trade has rejected the statement made on Facebook regarding non-payment of 13th month salary for Seychellois workers at the Indian Ocean Tuna Ltd (IOT), and has confirmed that funds will be provided to cover the payments. In a press release issued on Wednesday, the ministry gave its commitment that it will provide the funds to pay all Seychellois workers up to grade 5 in the IOT salary structure. The intervention brings to a close several days of uncertainty for the workers and their families heading into the end-of-year pay period.
The ministry noted that the commitment covers 350 out of 375 workers at the company, and that this is in line with the government’s objective of ensuring that lower income workers are safeguarded. The ministry has also urged IOT management to consider payment for the remaining workers on higher incomes. It is important to note that IOT is a profitable commercial entity operating in the International Trade Zone with the government holding only 40 percent shares, the statement said.
The release added that, despite having no obligation to do so, the government has decided to use taxpayers’ funds to cover this payment and has instructed IOT to make the necessary payments. The ministry stated that the government expects IOT to make a greater effort in the future to contribute towards the 13th month salary for its Seychellois workers, as part of ongoing discussions with other shareholders. The framing of the decision is intended to put pressure on the company’s other shareholders to step up.
The ministry also reminded members of the public not to rely on unverified information from social media but from official sources. The post on Facebook that triggered the response had alleged that IOT was not paying the 13th month salary to its Seychellois workers, a claim that has now been put to rest by the ministry’s intervention. The episode highlights the sensitivity of labour relations in the tuna processing sector, which is a major employer on the outskirts of Victoria.
Indian Ocean Tuna is one of the largest private sector employers in the country, with several hundred workers on its books at the processing plant in the International Trade Zone. The 13th month salary, paid at the end of the calendar year, is a customary benefit in many companies operating in Seychelles, though not all employers have committed to it. The government’s decision to step in for the lower paid workers is likely to set a precedent for similar interventions at other companies in the zone, and the ministry said further discussions with IOT’s other shareholders are continuing.
