By Khumbo Kaliwo
The Malawi Congress of Trade Unions (MCTU) has proposed an upward adjustment of up to 144 percent of the minimum wage for all workers.
But the government has since rated the suggestion as unrealistic.
This comes in the aftermath of a 44 percent devaluation of the Kwacha, which has seen the cost of living rocketing and workers’ buying power rocketing.
If the proposal gets a nod, it means workers would be earning K122,000 per month from the current K50,000.
The government last adjusted minimum monthly wage from K35,000 to K50,000 in 2021.
Speaking to journalists in Lilongwe yesterday, MCTU President Charles Kumchenga said the resolutions were made at the union’s 45th general council meeting which was held on December 3.
“The proposal means that the national minimum wage has to be revised from K50, 000 to K122, 000 per month, while that of domestic workers from K38, 000 to K92, 720.” Kumchenga said.
He said the 144 percent increase is also applying to salaries of truck drivers. MCTU has since given the government a 14-day ultimatum to take appropriate action that will cushion workers against effects of the recent devaluation.
In response to a WhatsApp message, Secretary to the Treasury McDonald Mafuta Mwale quashed the MCTU proposal, saying the 144 hike was ‘not justified in any way.’
“I can assure you that going by the budget that we have, we have no such amount in the just approved budget. So, negotiations have to continue until an amicable compromise is reached,” Mafuta Mwale said.
On Monday, the Employers Consultative Association of Malawi (Ecam) called for an understanding between employers and employees on proposals to raise salaries following the 44 percent devaluation of the Kwacha.
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.
The local currency was devalued by 25 percent in May 2022 and then by 44 percent last month.
