Morocco's Union Strike: A Call for Change or a Threat to Investment?

As Morocco's four major trade unions—the Moroccan Labor Union (UMT), the Democratic Labor Confederation (CDT), the Democratic Workers’ Organization (ODT), and the Federation of Democratic Unions (FSD)—announce a national general strike for Wednesday, February 5, investors and strategic partners must consider the potential implications for the Moroccan economy and investment climate. The strike, which aims to protest the government's "despotism" and failure to address rising costs of living and inflation, highlights the growing discontent among workers and the need for meaningful dialogue and reform.



The proposed strike law, Organic Bill No. 97.15, has been a contentious issue, with unions criticizing the government's unilateral approach and the suspension of social dialogue. The bill, which aims to uphold the right to strike while safeguarding citizens' and workers' interests, has been approved by the Social Sectors Committee of the House of Representatives. Key changes include removing bans on certain types of strikes, shortening negotiation and strike notification periods, and prohibiting the dismissal or discrimination of striking workers.

While the strike and its aftermath may present challenges for foreign investors and strategic partners, they also offer opportunities to engage with Moroccan companies and sectors that prioritize fair labor practices, social dialogue, and worker rights. By supporting these values, investors can help foster a more stable and productive work environment, ultimately benefiting both Moroccan workers and the companies they invest in.

In conclusion, the Moroccan unions' call for a general strike serves as a wake-up call for the government and investors alike. The strike highlights the importance of addressing workers' concerns and engaging in meaningful dialogue to create a more inclusive and prosperous economy. As investors and strategic partners consider the potential risks and opportunities presented by the current political and economic climate in Morocco, they should remain focused on supporting long-term growth and sustainable development.