National News

$1bn rail project construction suspended

Flashback: Makangala addressing the striking workers
Flashback: Makangala addressing the striking workers

The construction of $1 billion Kachaso to Nkaya railway project that passes through Malawi’s southern district of Neno has been suspended until next week following disagreements over pay hike demands by the workers.

This comes after the employees turned down a 30 percent salary increment, despite two days of negotiation between workers, government and management of Mota-Engil.

Minister of Labour Eunice Makangala confirmed the development yesterday after her two-day intervention to end the strike failed to break the deadlock.

“Their demands are unrealistic. At the moment, we are closing the company temporarily. The employees have been requested to go back. We will engage the Malawi Congress of Trade Unions (MCTU). The next meeting is slated for Tuesday with representatives of the employees,” she said.

The employees, according to sources that attended the meeting, turned down a 30 percent wage hike demanding that they be paid equivalent to foreigners whom they accuse of snatching their jobs.

On Tuesday, Makangala announced that the Thais, the bone of contention, will be repatriated in phases, starting with a group of 21 whom she said have no special skills at the construction site.

The other group will have to impart skills to Malawians before they leave, Makangala said on Tuesday during her first meeting with both stakeholders.

Currently, there is heavy police presence at the construction camp.

The project is expected to employ about 4 500 workers at its peak, of which 70 percent will be Malawians, that is over 3 000 new jobs.

Once the railway is up and running, the Malawi will earn $8 million per year from concession fees.

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