Kayerekera workers on strike, demand 40 percent raise

Employees at Kayerekera Uranium Mine in Karonga have gone on strike demanding a 40% salary increase in the wake of the recent devaluation of the Malawi currency, the kwacha last week.

Effectively, this has completely halted all activities at the mine which is supposed to run for twenty fours on daily.

A senior management employee confided to zodiak online Friday that their demands are justified by last weeks’ 49.7% devaluation of the kwacha.

“We are demanding a salary increase of 40% to compensate the devaluation of the Malawi kwacha,” said the senior management employee.

He added that their mining company - Paladin Energy Limited transacts the uranium business on the international market in United States Dollars hence they need to adjust their monthly salaries accordingly.

“Our company sells uranium in United States Dollars, so we equally need the company to consider paying us an equivalent salary increase in Malawi Kwacha in order not to stretch our economic livelihoods.”

But Paladin’s General Manager for International Affairs Mr. Greg Walker explained in a telephone interview from the company’s headquarters in Australia, that the action by the employees to stage a sit in is illegal.

Mr. Walker described the demands by the employees as unreasonable which the company cannot fulfill overnight.

“Yes, I can confirm of the strike but it is illegal under the labour laws of Malawi. They (workers) cannot demand to be paid in (Malawi) Kwacha in equivalent to the United States Dollars,” said Walker in a telephone interview.

Walker added, “It is unheard of to demand a 40% salary increase within twenty four hours. They presented an ultimatum to the management on Thursday but wanted the salary increase by the following day Friday.”

He also added that efforts to try to appeal to the workers to go back to their duties have proved futile through a series of meetings with a local workers union, forcing the company to report the matter to the Ministry of Labour in Lilongwe.