Moroccan Traders Rally Against Maroc Telecom's Reduced Profit Margins
In a move that has sparked widespread outcry, Maroc Telecom, the nation's leading telecommunications provider, has slashed profit margins for traders on prepaid cards from 7% to 4.5%. This decision has ignited a firestorm of protests and calls for a boycott from a prominent Moroccan union of traders and craftsmen, affiliated with the Moroccan Labor Union (UMT).
The union has vehemently condemned Maroc Telecom's decision, labeling it as "ill-considered and misguided." Youssef Boujhi, the provincial secretary of the General Union of Traders and Professionals in Marrakech, criticized the company's unilateral approach, stating that the decision was made without consulting stakeholders, particularly traders and professionals who serve as a vital link between the company and its customers.
Boujhi emphasized the far-reaching implications of this move, warning that it could have severe social and economic consequences for a substantial group of traders and professionals. He described the decision as "unprecedented" and pointed to Maroc Telecom's lack of communication with its customer base as a concerning trend.
In response, the union has called for an immediate and unwavering boycott of all Maroc Telecom prepaid services until the company reverses its decision. Traders across various professional activities have been urged to cease supplying and selling all forms of Maroc Telecom's prepaid offerings, whether instant or via prepaid cards.
The union's demands are clear: Maroc Telecom must not only revoke the reduction in profit margins but also respond to the traders' call for an increase, raising the profit margin to 8%. The union has reiterated its stance, asserting that the boycott will remain in effect until the company addresses the traders' grievances and rescinds its "unfair decision."
While Maroc Telecom Group's net profit witnessed a modest 0.5% increase to MAD 1.52 billion in the first quarter of 2024 compared to the same period last year, the company's cash flow from operations declined by 15.5% to MAD 2.84 billion due to increased investments. Despite the growth in transaction volume and efforts to control operating costs, resulting in a 1.7% increase in EBITDA to MAD 4.65 billion, the company's actions have ignited a firestorm of discontent among traders.
As tensions escalate, all eyes are on Maroc Telecom to address the traders' demands and find a resolution that satisfies all parties involved. The ongoing boycott serves as a potent reminder of the crucial role played by traders and professionals in the telecommunications industry and the potential consequences of disregarding their concerns.