The MCTU is urging employers to give employees an across-the-board salary increase of not less than 40 percent to cushion them from the recent devaluation.
Malawi Congress of Trade Unions (MCTU) secretary general Robert Mkwezalamba said on Thursday the union would expect employers to effect the increment automatically, but noticed some employers wait to be pushed or coerced.
Mkwezalamba was commenting on some employeesâ€™ expectations of a 50 percent salary hike after the 49 percent devaluation of the kwacha effected in May this year.
But Employers Consultative Association of Malawi (Ecam) deputy executive director Beyani Munthali said salary increments are a tricky issue as they vary from one company to another.
Said Munthali: “Most companies have settled for between 25 to 30 percent increments. However, expecting a 50 percent rise across-the-board might be costly for many companies which could lead to job losses.”
Meanwhile, staff and management of Eastern Produce (Malawi) Limited in Mulanje and Thyolo are another example of paths crossing following the contentious issue of salary increments.
One manager, speaking on condition of anonymity, on Wednesday said that managers are disappointed with a 30 percent hike they got against a 50 percent increase for tea-pluckers effected after the devaluation.
Eastern Produce (Malawi) Limited managing director Rick Tilley said it is normal practice the world over to give larger increments to those earning less and vice-versa.