Record profits produce few benefits for Malawi’s sugar workers

Illovo Sugar, which is owned by Associated British Foods (Ryvita, Patak’s, Primark) is the biggest sugar producer in Africa and of the six southern Africa countries in which Illovo operates, Malawi generates the biggest profits.

However, gains from increased sugar exports to Europe and other African markets have reaped few benefits for low-grade workers at Illovo Malawi.

Things are particularly bad for those who do the backbreaking job of sugarcane cutting and weeding – most of whom are employed as seasonal, casual labourers.

This March, Illovo Malawi reached an agreement with the Sugar Plantation and Allied Workers Union of Malawi (SPAWUM) to increase across the board wages at the company by 26 per cent.

This affected all 5,400 permanent workers at Illovo Malawi’s mills in Nchalo and Dwangwa, as well as employees at the company’s headquarters in Limbe.

However, of Illovo Malawi’s 10,000-strong total workforce, just under half are outsourced workers – they were not covered by the pay increase.

In addition, permanent workers still complain that they are denied basic rights such as maternity leave, sick leave and overtime pay, while lower grade workers say that the ever-increasing cost of living cannot be met by the 14,400 kwacha (US$34) minimum monthly wage.

There is also an issue with benefits as higher grade administration and technical workers are entitled to both a housing and school fees allowance, while lower grade workers – who can barely afford to pay for their children’s school fees – have to rely on loans.

SPAWUM chairperson Prince Jasimawo confirmed that the company’s benefit policy remains a cause for concern.

“Most of the [juniors] workers are unhappy about the education loans offered to senior staff while they can’t afford the [company] school fees loans.

“As a union we have sent some proposals to management on these concerns.”

Although Illovo Malawi’s public relations officer Irene Phalula could not be for comment, Kenwood Mataka from Illovo Malawi’s human resources department told Equal Times that all of the company’s employees are well-paid and respected.

“Illovo offers its junior, unskilled staff wages that are above the country’s minimum wage [8,000 kwacha, or US$20] aside from several benefits that include a medical scheme,” he said.

Outsourced workers

But that isn’t the case for Ilovo Malawi’s 4,500 contract workers.

“Our working conditions are made worse because of the fact that we are not on the Illovo pay roll but we are hired by contractors who are paid by the company to do manual work like weeding and planting,” said one Illovo casual who asked to remain anonymous.

The worker, a sub-contracted cane cutter, told Equal Times that he is paid 600 kwacha (US$1.40) a day if he meets a daily target of cutting 40 metres by 35.

However, as the work is physically very tough, some workers – especially women – regularly fail to reach their targets.

But with little prospect of finding work elsewhere, Illovo’s outsourced workers feel they have no choice.

“Yes, the working conditions are awful but we will suffer in silence because we are afraid of losing our jobs,” said the anonymous worker.

These fears are real since memories are still fresh of the 2011 action where workers went on strike to call for better wages. As a result, key strike leaders were summarily dismissed for, amongst other reasons, holding union meetings without the company’s permission.

SPAWUM officials were also among the dismissed workers and they have complained of being subjected to intimidation at the hands of Illovo management and police.

As a company, Illovo has a policy which demands that the union has to meet only after seeking management permission.

This, however, is against Malawi constitution which gives every citizen freedom of association.

But as long as they rake in huge profits, it seems that Malawi’s sugar barons can continue to take the law into their own hands.