Algeria: Naftal applies “illegal pay raise”

Algeria’s fuel company Naftal violated Labor Code by adopting two salary scales for simple employees and senior executives.

The enterprise raised the salary of 17 percent of its personnel in 2011 and 2012. Simple workers got a pay raise of 17 percent while executives’ salary increased by 30 percent. This came following an agreement between the Naftal administration and workers’ union.

Article 17 of the Law 90/10 from the Labor Code stipulates that any prevision which creates discrimination between workers is not applicable.

In 2012, simple workers at the enterprise started earning 19,060 DZ per month compared to 16,291 DZ. Senior executives’ wage jumped to 105,354 DZ compared to 81,163 DZ. This shows a clear difference in raise rates between the two categories of employees.