2014 REPORT ON SOCIAL AND POLITICAL SITUATIONS: CASES OF HUMAN AND TRADE
UNIONS/ WORKERS’ RIGHTS VIOLATIONS IN MALAWI.
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Socio, political and economic situation in Malawi as well as human and trade union/workers’ rights
violations.
I.
Social, political and economic situations
 Stadium workers decry Chinese abuses
As the new magnificent stadium took shape in Lilongwe, so were increasing voices of concern from
local workers on the site claiming that the Chinese managers abused them. They were constantly
subjected to physical abuse by personnel in the Chinese management on site such as beatings and
absence of provisional care. The workers cited a string of cases where accidents occurred and staff
were injured but received a cold response from management in terms of provision of any type of
health care. When one of the managers was asked, he responded that accidents are common on huge
construction sites and such that cannot be an area to concentrate on.
Government in response to that warned that it will deport all Chinese managers and nationals who
abuse local workers. Secretary for labour said the ministry gave the management of the Chinese
company several recommendations and issued a stern caution on the need for them to adhere to the
country’s labour laws.
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The Malawi Congress of Trade Unions (MCTU) also condemned the abuses which local workers at the
National Stadium construction site reported. MCTU appreciated the Chinese government support to
Malawi government’s infrastructural development that enhances job creation and reduction of
poverty, however, MCTU called on government to direct all investors in the country to engage
themselves with the Employer Consultative Association of Malawi to run them through workers
industrial and labour laws.
 Food basket jumped 40% in 2013-2014
The basic food basket rose by 40% in 2013 to about K70, 000.00 and the Centre for Social Concern has
since recommended that the tax-free band should be increased to about K40, 000.00. The CFSC basic
needs basket monthly review of prices of food and non-food basket indicates that an average
household living in the cities required about K110,000.00 which is a 30% jump compared to the year
2012. It was recommended that to ensure households at least meet the basic food basket, the
government must expand the tax free band on Pay As You Earn to K40, 000 from K20, 000.
 Government failed to recruit new teachers
Government of Malawi failed to recruit new teachers’ including fresh graduates from Chancellor
College of Malawi. The Principle Secretary for Higher Education in the Ministry of Education, Science
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and Technology said they indeed had shortages within the ministry but the failure to recruit was
related to budgetary allocation.
 Statutory Minimum Wage
The Ministry of Labour notified all employers and workers that the statutory minimum wage had been
revised upwards from three hundred and seventeen kwacha (K317.00) per day to five hundred and
fifty one kwacha (K551.00) per day effective 1st January, 2014.
 800 youths acquired jobs in labour export deal
At least 800 youths went to work abroad in a labour export deal. In 2013, Government announced the
labour export deals with countries such as South Korea, Qatar and Dubai with the aim of reducing
unemployment in the country. Civil Society Organizations criticized government, saying instead of
exporting labour, Government should find ways of creating employment.
 Civil Servants petitioned Office of the President and Cabinet
Civil Servants Trade Union submitted a petition to the office of the President and Cabinet demanding
government to address some outstanding issues including increment of salaries and reduction of
funding to ministries and departments. The petition followed a meeting between Government
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Negotiations Team and Civil Servants Trade Union negotiation team. Civil servants requested
government to immediately review their salaries to correspond with the cost of living.
It was later announced in the Parliament that government would give its employees a 24% salary
increment, but the civil servants rejected. The civil servants rather proposed a 50% increase in salary.
Malawi Government increased Civil Servants salaries by an average of 45%.
 Teachers’ salaries delayed
As of 18th November, 2014, teachers in some parts of the country were yet to receive their October
salaries. Some teachers started boycotting classes to force government to sort out their pay. The
Secretary General for Teachers Union of Malawi (TUM) expressed how disappointed he was and urged
the government to pay the salaries. The Public Relations Officer in the Ministry of Education said they
had developed a way to end this problem. He said they had decentralized their system in which the
salary processing was being done to a divisional level. He assured the public that the civil servants
within the Ministry of Education will be receiving their salaries earlier than other ministries.
 Labour woes haunt government
The increase in number of strikes has given government a daunting task. So far there are strikes at
University of Malawi and Judiciary in progress demanding salary increment. The industrial action is a
last resort for them, hence they are open to discussions that might resolve this problem. However,
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University of Malawi Council asked the striking support staff to go back to work or risk losing their
jobs as the strike was described as illegal since they did not follow legal procedures for going on strike
as stipulated in the Labour Relations Act.
As of 15th December, 2014, Malawi Doctors and Nurses were also planning to go on strike demanding
government to increase their allowances and high pay. The Doctors and Nurses complained that their
salaries are too little to survive the current inflation which occurred in Malawi.
 Malawi Inflation Rate
The inflation rate in Malawi was recorded at 23.70 percent in November of 2014. Inflation Rate in
Malawi averaged 14.27 percent from 2001 until 2014, reaching an all-time high of 37.90 percent in
February of 2013
 Political Context
Malawi elected its 5th President Prof. Arthur Peter Mutharika on May 20, 2014. Eleven parties
contested for presidency. Prof. Mutharika emerged winner with 36.4% of the vote, defeating President
Mrs. Joyce Banda of the People’s Party (PP) who came third with 20.2%. Dr. Lazarus Chakwera of the
Malawi Congress Party (MCP) came second with 27.8%. At party level, Prof Mutharika succeeded his
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late brother President of the DPP Prof. Bingu wa Mutharika succumbed to a cardiac arrest halfway
through his second term of presidency.
 Despite progress on social issues, Malawi’s development path has several challenges, below are
some of them:
 Sustainability of policy reforms remains a challenge.
Macroeconomic stability following the actions taken by the new administration is still fragile and
would critically depend upon the continuance of the policy measures instituted.
 Public spending is inefficient and poorly targeted.
Fundamental weaknesses in the public financial management system have been brought to light by
the fiscal scandal (famously known as ‘cash-gate’ scandal), which further points to the urgency of a
comprehensive public finance and economic management reform.
 Weak governance.
The ‘Cash-gate scandal’ has brought fundamental, underlying governance issues and weaknesses to
the surface, and pointed to the futility of attempting to stimulate economic growth, eradicate
extreme poverty and promote shared prosperity without tackling these “wicked” problems.
 Investment climate constraints hinder private investment.
The business environment in Malawi has deteriorated in recent years resulting in a slowdown in
foreign direct investment and reduced competitiveness. The Doing Business 2014 report ranks
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Malawi at 171 out of 189 countries. Main obstacles to doing business in Malawi include poor
support infrastructure and services (e.g. electricity, water, transport), uncertain economic
environment, poor legal and regulatory framework, lack of access to long-term finance and limited
skill base.
 President gets 80% pay rise
As reported by the government spokesman, he confirmed that the President’s pay had been increased
to 80% despite the President saying he will not raise his salary anytime soon earlier this year. He also
said the raise was in line with the 2014/2015 budget. After people’s reactions, the President
responded that he will not be taking the 80% increased salary until economic situation improves.
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