Ecam engages employers in labour laws

Malawi can achieve rapid economic growth through sound industrial relations and effective collective bargaining, the Employers Consultative Association of Malawi (Ecam) has said.

Ecam council member Matthews Mwase, speaking on Friday in Blantyre at the opening of a day-long workshop on labour laws organised by the employers’ organisation, noted that as the country maps its way to the economic recovery, the significance of social dialogue is unprecedented.

“As seen through policy statements from the government, we, as private sector, are the engine of economic growth. It is the private sector that generates employment and, as such, this private sector must champion strict adherence to laws.

“As the most representative body of employers in Malawi, we must take proactive measures in assuring that we address the needs of our organisations and, as such, social dialogue with employees is one important tool,” he said.

Mwase noted that the industrial action experienced in the past two years was due to reactionary policies to workers’ demands that were left to develop over time.

Old Mutual Malawi, which sponsored the workshop, noted that employee-employer conflict is costly and that there are no winners from industrial action.

“When you look at a prolonged industrial dispute, you can see many problems and costs. For the employer, loss of sales and profits, damaged customer satisfaction, internal distraction for management and damaged relationship with staff.

“To the employee, the losses include lost pay, potential job losses and illegal strikes may lead to legal proceedings,” said Old Mutual investment group general manager Mark Mikwamba.

He said given the costs involved, it is important for companies to focus their energies on preventing industrial action.

“The priority for companies should be to encourage a workplace culture that prevents conflicts from arising. Informing and consulting workers and their representatives on employment matters and business developments more widely can sometimes do the trick,” said Mikwamba.

The workshop tackled a number of issues, including an overview of employment laws in the country and international labour standards, a review of the Pensions Act and Employment Amendment Act for employers, Workers Compensation Act and the common law and trade unions’ laws.