By Pemphero Malimba:
The Malawi Congress of Trade Unions (MCTU) has frowned at the 40 percent minimum wage hike announced by Labour Minister Peter Dimba Tuesday. MCTU President Charles Kumchenga belittled the hike, saying they wanted a 100 percent increase. He said the 40 percent increase was not enough, considering economic challenges facing people in the country. The unionist cited the rising cost of goods and services.
“Two years ago, a bag of maize was [selling] at K30,000 but, this time around, the bag of maize is at K90,000, in some cases K80,000. So that was the first thing that we considered. Even salaries for workers are not enough,” Kumchenga said.
He indicated that it was too early to ascertain the way forward.
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“We need to meet our constituents so that we can appreciate why the government has decided to increase [the minimum wage] by 40 percent instead of perhaps 80 or 90 percent,” he said.
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Announcing the hike in Lilongwe, Dimba said the general minimum wage had been increased from K90,000 to K126,000; in essence, the minimum wage for domestic workers has been hiked from K52,000 to K72,800; that for micro and small enterprises has been increased from K75,000 to K105,000.
In addition, the minimum wage for international truck drivers of 30-tonne vehicles and above has been increased from K234,000 to K328,000, that for local drivers of 30-tonne vehicles and above has been increased from K167,000 to K234,0000.
In terms of shop workers whose shops have total sales of K500 million per year, the minimum wage has been increased to K150,000.
Dimba said the increase was made in consultation with stakeholders, including MCTU and Employers Consultative Association of Malawi (Ecam).
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He said the move was made after considering factors such as the high cost of living, devaluation of the Kwacha, high inflation rate, relative economic standards and levels of productivity.
The Labour Minister said the ministry would enhance inspections to ensure adherence to the minimum wage requirement.
“We will ensure that we intensify inspections, moving around the workplaces to see whether there is compliance not only with minimum wages but a number of laws that employers are supposed to adhere to,” he said.
Dimba further warned against non-compliance with the set minimum wages.
“We have quite some employers who do not comply with these set minimum wages. I want to remind them that this is a law and when they break the law, there are consequences. In fact, it is a criminal offence for employers not to stick to minimum wages,” he said.
Ecam Executive Director George Khaki, whose organisation proposed a 30 percent increase, said the organisation would not make a quick comment on the matter until it consults its members.
Section 54 of the Employment Act gives powers to the minister responsible for Labour to fix minimum wages of any group of wage earners if the minister is of the opinion that it is expedient to do so.
