Tunis, Tunisia– Tunisia’s government and the country’s powerful UGTT union signed a deal boosting public sector salaries on Thursday, three months after a strike that paralysed the country.
The deal involves a five percent annual hike to public sector wages every year until 2025.
The cash-strapped government was initially unfavourable to hikes of this scale.
Tunisia has been hit hard by the coronavirus pandemic and global diplomatic fallout from the war in Ukraine, which has sent the price of key imports notably wheat and oil soaring.
Inflation surpassed eight percent year-on-year in August.
The government is locked in negotiations with the International Monetary Fund over a $2 billion bailout.
The UGTT organised a general strike on June 16 that saw flights cancelled, public transport grind to a halt and government offices closed.
