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Malawi energy utility suspends 14 striking workers over wage dispute

14 December, 2023On 7 December over a thousand workers marched and staged a sit-in at the Electricity Supply Corporation of Malawi (ESCOM) operations in the cities of Blantyre, Lilongwe, and Mzuzu to protest a pittance wage offer.  

ESCOM offered a 10 per cent increase but workers said they wanted a 44 per cent increase to protect the value of their wages against the increasing cost of living after the devaluation of the Malawian Kwacha by the country’s reserve bank.

The Kwacha was devalued by 44 per cent in November and retailers of imported goods passed on the cost to the consumers thus making goods more expensive. Malawi imports food, medicine and pharmaceuticals, petroleum oils and fuels that it uses for electricity generation and transportation, fertilizer for the agricultural sector, among other imports.

State-owned enterprise ESCOM, which falls under the government of Malawi’s ministry of labour and vocational training, suspended ESCOM Staff Union (ESU) leaders and workers after the industrial action. 14 ESU members were suspended. Out of over 2400 workers at ESCOM, 2040 are members of ESU.

IndustriALL general secretary, Atle Høie, says:

“I am urging ESCOM to promptly revoke the suspensions and to stop violating workers’ rights to freedom of association. Further, it is important to reiterate that Malawi has ratified core labour standards of the International Labour Organization, specifically Convention 87 (Freedom of Association and Protection of the Right to Organize) and Convention 98 (Right to Organize and Collective Bargaining), which are enshrined in Malawi’s Labour Relations Act. IndustriALL calls upon ESCOM to consult with ESU to address the impasse, and promote industrial harmony rather than retribution.”

Malawi’s economy is based mainly on agriculture, retail, and construction while manufacturing sectors have declined. However, the energy sector is seen as one of the industrial sectors that has potential to create jobs and contribute towards economic growth especially through investments in hydroelectricity, solar, and other forms of renewable energy. Reliance on hydroelectricity, which constitute 57 per cent of the country’s energy mix, makes the country’s energy generation vulnerable to climate change especially during droughts.

IndustriALL affiliated unions in Malawi are organizing workers in manufacturing sectors that include the chemical, mining, and textile, garment, shoe, and leather industries.