The downside of Israel deal

Despite public perception that the labour export deal to Israel is a government-to-government arrangement, it has emerged that there is no formal agreement between Malawi and Israel, a development that may expose workers to exploitation.

Besides potential exploitation of the workers, the private arrangement of the deal could also see Malawi losing out on the foreign exchange remittances as some of the Malawian workers in Israel have opted to be paid their full dues in Israel. Initially, it was stated that part of the earnings would be remitted to their local bank accounts at home to bolster foreign exchange reserves.

The developments have prompted the Malawi delegation meeting Israeli officials to lobby for the signing of the government-to-government agreement to maximise gains for the country.

Currently, Malawians are recruited through agents present in Malawi and Israel who have agreements with Israeli farmers in need of workers.

In some cases, the agents are paying for travel expenses to be deducted from workers’ wages and in other instances the workers obtain loans from Malawian banks to cover travel expenses to be paid back from wages over a period of months.

The wages also differ from one employer to another with some paying below the legally stipulated minimum wage.

Secretary to the Treasury Betchani Tchereni, who is leading the Malawi delegation that also comprises members of Parliament (MPs), said the highlighted challenges would be cured once a government-to-government deal is signed.

“We would be happier to formalise this properly with government. That is what we want,” he said during a meeting with Israel’s Minister of the Economy Nir Barakt who promised Malawi up to 100 000 jobs across sectors with 10 000 expected in two months’ time.

But while committing to signing the government-to-government agreement, Barakt suggested that the arrangement should largely be the business of the private sector in the two countries.

He said: “I am pushing for a change on the methodology of how government works. I am coming from the private sector while the government-to-government agreement is important, I want to open it for businesses to focus directly with the right people in different countries and dramatically expand the scope and speed of how we recruit people.”

During random interviews with some of the Malawian workers on farms, it was established that they are paid less than what is contractually agreed in some cases.

According to a generic contract The Nation has seen, no employee is expected to receive below the minimum wage of 30.61 Shekels, an equivalent of about K13 500 per hour based on the Israeli minimum wage law of 1987 and minimum wage set on April 1 2023.

Reads the contract: “The minimum wage as of 1 April 2023 is 5 571.75 NIS per month and 30.61 NIS per hour, including all amendments to this law. The wage shall be paid by the 9th day of each calendar month.”

The contract also prescribes the number of hours one is expected to work and the compensation for any overtime.

For each of the first two overtime-working hours per day, the employee is entitled to payment at the rate of 125 percent of his/her regular hourly rate. Each additional working hour entitles the employee to payment at the rate of 150 percent of his regular hourly rate.

For others, the contractual obligations are fully met, but in some cases, based on interviews with workers, there is a departure from the contract.

Said one of the workers whose identity we have concealed for fear of reprisals: “We are receiving low wages of 24 shekels per hour and working 12 hours at the same rate without overtime. And we are using one bathroom and toilet about 20 guys, comprising 10 girls and 10 boys. We have been raising these concerns since last year, but nothing is done.”

At one of the farms the Malawi delegation visited in Kifar-Aviv, it was learnt that the workers are paid 22 shekels or about K10 000 per hour which is less than the minimum wage.

In separate interviews, the eight workers at this farm said in as much as they are getting less than the minimum wage, they do not have a problem.

“I am happy because those getting 30.61 have deductions such as accommodation and utility bills which is not the case here. So far so good,” said John Josam, one of the workers.

During the interactions, it also emerged that another hurdle facing the deal is that some employers have decided to pay workers through Israeli bank accounts which discounts the envisaged forex opportunity to Malawi.

Three workers and their employer confirmed that this was the arrangement and it was in line with the Israeli law.

Said Humphrey Lunda whose sentiments were corroborated by colleagues under the same employer: “In our case, the employer paid for our travel expenses and we do not have any loan with Malawian banks. We are paid through our accounts here and we are able to send money back home. I have worked in Malawi before, but what I am getting here is far much better. I am happy here.”

Dori Shani, a director for one of the recruiting agencies, said most workers prefer to be paid in Israel and not Malawi.

Public Appointments Committee of Parliament chairperson Joyce Chitsulo, who is part of the Malawi delegation, said the payment through Israeli banks was one of the issues they will work on to ensure every worker receives their salary in Malawi.

“It defeats the whole purpose. They are expected to also benefit the economy, not just themselves. We need to have measures that will compel everyone to be paid in Malawian accounts,” she said.

The delegation said they will push this issue as part of the agreement that is expected to be signed.

The Nation has gathered that discussions on this agreement between Lilongwe and Tel Aviv are ongoing and the signing of the agreement is expected soon.

MPs in the delegation have also called for a review on the selection procedure to have only those willing and capable of working to be exported in this deal. They further said the opportunity should be extended to rural areas

The Malawi Consulate in Israel last week said about 23 of the workers have escaped farms to seek asylum.