Hotels Union hold a Press Conference

REFORMS AND SUGGESTIONS IN THE TOURISM AND FOOD PROCESSING SECTORS

The union would like to thank the Government for the following:

1. The lifting of the workshops from the workplaces. This issue had caused a lot of misery and fear of retrenchments as most guests are from the government and its agencies, we had written to the SPC and we are glad as a union for the outcome.
2. The waiver of visas – the government has wavered visas from most countries who patronize Malawi.
3. The assistance towards our sisters and brothers in foreign countries in the middle east who have been trapped in modern slavery.
4. The assenting of the numerous labour bills that have been there for sometime. The union would like to thank the government on breast feeding breaks and paternity. Now as a family we can together care for the new born. The pensions act is another act that we have to thank the government for reducing the waiting time to three months and also being able to access 50% 5 years before retirement.

With the above the union would like to highlight some issues which we need the government to look into

1. Minimum wage – everybody agrees that the minimum wage cannot sustain the livelihood of a worker. Currently the minimum wage is 50000. 5% goes towards pension leaving a person with 47500. The rest cannot sustain anyone.

We would like to say most employers base their salaries on this minimum wage and to them they say this is what your government says we should pay. They don’t understand the concept of minimum wage. To them is the standard.

We would like the government to push the structure that is responsible for minimum wage to meet and discuss. We propose the structure to meet and it is our prayer that the government directs so.

The last time the minimum wage was raised it took close to six months before it came into effect

2. Severance allowance calculations do not reward those who have stayed long. We wish if it could revert to old way of calculating which was a straight line, if one worked 14 years they were paid four weeks for each year worked but now the first 5 years 2 weeks for each year worked and the next 5 years three weeks for each year worked and the rest 4 weeks for each year worked. So they are losing 15 weeks pay
3. TAX on terminal benefits – when one is retrenched tax free band is 50000 and after that the remaining amount is deducted at 30%. We feel this % is high. If one gets one million tax is 285000. This is high considering that this is his last earning.

There is also tax which is deducted on casuals. Anyone getting above 40000 is deducted tax. We feel this is being unfair for we understand there is no casual work.  Could the government look into this.

4. Too many taxes and levies – the hotel sector has a lot of taxes and levies towards the same category. In food and liquor there is Malawi Beaur of standard, Hotel and Tourism Board and City Council. These areas should be organized and who looks at what. The hotel operators have no choice. The union would like to ask that the levies and taxes be removed. We would like to ask government Vat be removed from being paid. This can help Malawians to patronize our hotels
5. Tourism levy – we understand that MIT used to benefit from this levy. The fees were low and the students were being given uniforms and were given teas. Now the fees are high, they have to buy their own uniforms. This is one area where the salaries are very low, we would like to ask that the issue of levies be looked at again
6. Casual work – the industry is now characterized by casual work and short term contracts. The mostly affected are the young workers. A minimum period of the contract should be agreed on. Most employers are running away from contributing to pension and giving low salaries
7. Service Charge – this was an incentive which those in hotels used to receive mid month. It was given to everyone in the hotel including interns as opposed to tips. We ask government to bring this back.
8. Special Rates for Malawians – the rates charged by most hotels are not affordable to Malawians. We would like to ask for special rates for Malawians
9. Trainees – the trainees are some personnel who help. Some hotels pay while others do not pay. These people do work and even work long hours. The employers are taking advantage that there is no no which compel them to pay. They can have them for six months and get others for the next 6 months and employ very few staff members. We would like to ask government to devise a law which will compel companies to be paying. Because of no pay this leaves them vulnerable to abuse. You find from the same institution others sent to hotels which pay and others being sent to hotels which do not pay. The interns can work away from their places. We would like to ask the government that a hotel should have a number of interns in a year as part of developing the sector and an allowance given.
10. Star Grading – in star grading of hotels the union should be part of the star grading committee. It is not enough to have a beautiful structure while the welfare of people is not being looked into. The government should put in place measures that the grading and salaries march. We still have hotels paying minimum wage of 50000 per month while a room a day is above 50000. The fees at the institutions are very high and as a result we shall lose most of our graduates to other countries. We have many foreigners in high positions in most hotels and the salaries are very different
11. Most employers do not want the unions – most employers refuse access for union to conduct lawful union activities. These are employers who ill tread workers and employees. They fear that the union will expose their bad dealings. They high lawyers to defend this. We would in this vain ask the government to raise the status of the ministry of labour and fund it well. Most labour offices in the districts do not have means of transportation and this makes it difficult for labour inspections. There are organisations which do not respect labour laws. Up to now there are organisations which have not put their employees on pension. It is in this token that we say the government should fund adequately the ministry of labour. The ministry of labour should sensitise its employees on the labour laws on various issues for the employers trust them. The issues of gratuity and pension should be well understood by us both – the union and labour
12. IRC – court cases are taking time. As HFPCWU we feel the issue of removing panelist was not done in good faith. Most employees cannot afford a lawyer and cases have to be dealt on fairness. We feel one person cannot bring it up himself fairness. This is a listening government. Bring back the panelist. The courts still allow a lawyer even if the complainant has no lawyer. Also increase the number of vice chairpersons and increase the funding of the court. Out there people are still waiting for cases which were lodged five years ago. The other thing is judgements. It is taking long to deliver judgments and assessments.