Employers Consultative Association of Malawi (Ecam) has called for an understanding between employers and employees on proposals to raise salaries following the 44 percent devaluation of the Kwacha.
Last month, the Reserve Bank of Malawi (RBM) announced that it had devalued the Kwacha to address the problem of misalignment with alternative market exchange rates.
Ecam President Anne Chavula said there is a need for both parties to understand each other because times are tough not only for the employees but even employers.
“Let us come together and find a [lasting] solution because there will always be a solution and we can always work together for the goodness of our country at large,” Chavula said over the weekend, when the association was having employer of the year awards in Blantyre.
Her sentiments come after RBM Governor Wilson Banda warned employers against effecting astronomical pay rises, saying this has the potential to stoke inflation.
Meanwhile, Labour Minister Agness NyaLonje has asked employees to create a conducive environment for employees so that workplaces can achieve maximum productivity.
“Otherwise, the country is doing well, in terms of protecting workers’ rights, as most workplaces allow unionism, which promotes the welfare of workers.
“We promote unionism so that there is a balance between capital and labour and we can say that we are doing well because there is silence in workplaces,” NyaLonje said.
The minister said the government will not let employers that abuse workers go scot-free. Following the 44 percent devaluation of Kwacha, prices of goods and services have been rocketing.
However, Banda said at a press briefing recently that huge pay rises could culminate in run-away inflation that would, in turn, culminate in job losses.
“That [big salary rises] in itself can create another round of problems. If government does not have the resources, it will create deficits. I am saying there should be restraint.
“For a private company— where workers are saying we are downing tools if you do not pay us higher wages— the company either has an option of firing employees or increasing their salaries or wages or prices of the goods they produce,” he said.
However, Malawi Congress of Trade Unions Secretary General Madalitso Njolomole said there was a need for a win-win situation.
“RBM should announce proper measures of stabilising the economy but punishing the worker is not part of that [solution]. It is either that salaries are aligned with the 44 percent devaluation of the Kwacha or workers are cushioned from the rising cost of living,” he said.
