Ministry casts doubt on Mota-Engil staff demands

Ministry of Labour has cast doubt that the 50 percent pay increase demanded by Mota-Engil Malawi workers would be granted.

The position comes while mediation led by the ministry in Lilongwe are underway after staff rejected a 23 percent pay raise, an upward adjustment from the 15 percent the company initially offered.

The ministry’s regional labour officer and lead conciliator Lovemore Theu confirmed to have held both joint and separate talks with the company’s management and staff.

He said from the current position of the company, the 50 percent salary increment would not be possible.

“We have been holding talks with both sides and we have made progress. The company has made offers and we hope the two sides will meet in between,” said Theu.

In a separate interview, the workers representative Justice Chimbayo confirmed that they refused the proposed percentage, saying they have gone five years without an increment.

He said: “We also have information that the Mota-Engil Malawi management suggested a 25 percent increment during their meeting with the ministry but when they met us, they offered 23 percent.

“We have been told that management has referred the matter to headquarters in Portugal so we await the outcome.”

On demands to have contract employees that have worked for three to six months be hired on a permanent basis, Theu said Mota-Engil uses contract services with varying years.

Earlier, Mota-Engil Malawi public relations manager Thomas Chafunya said the company made its position known that the demanded 50 percent increment cannot be met due to the business environment.

However, he said a 15 percent increment had been offered to the staff on top of immediate implementation of government’s minimum wage.

The demands by the company’s staff come amid pressure from workers in both the public and private sectors who want their their salaries hiked in response to the 44 percent kwacha devaluation that the Reserve Bank effected in November 2023.