Malawi: Strike Update

Yesterday the union and G4S met and the company increased its wage offer to an increase of 15%, just a shade over the "official" inflation rate, but still under the rate of inflation as determined by NGOs operating in Malawi.

The union did not accept this, but the parties are resuming their discussions today. There are hopes that there will be additional progress so that a job action can be avoided.

The low wages the company is paying in Malawi should continue to shock all of us. The Malawian Centre for Social Concern (CFSC) reports that commodity prices continue to go up there. In an interview on Saturday CFSC Research Officer Chrissie Kafundu said "...(A)ccording to our research the cost of the minimum food requirements for an average family of six living in Blantyre, Lilongwe and Zomba has risen to over K20,000 (a month). ” In its statement on the basic needs basket for January, CFSC says "129 K per day is only enough to buy two 50 kg bags of maize and milling them."

“Whether it is a domestic servant or a guard, their families need at least K673.50 per day to cover food alone,” reads part of the statement. Guards employeed by G4S earn a mimum wage rate of 127.09 per day (about $1), 3,300 per month.
But the clients are paying much more and the media has taken notice. As the Malawi Daily Times recently reported, "According to The Daily Times investigations G4S charges it clients K18, 834.45 (permonth) for a guard on a 12 hour shift....However despite netting so much money for the company the starting salary for a guard is K3200 per month (K8 per hour) and those with more experience get about K4000(K11 per hour)."

This is an astonishing ratio of wages to client costs, and if left unchanged is guaranteed to keep these guards in poverty indefinitely.