News

Negotiations with G4S Malawi started in August 2010 when the union claimed an increase to the basic wage of G4S guards of 30%. Inflation in Malawi was at 7.5% in October 2010, GDP was at 5% and G4S had made their budget for 2011 at 9%.

In considering economic factors in Malawi, and despite that the CPI was higher than the inflation rate, G4S only offered to increase the basic wage by 9% as they budgeted. After a number of negotiations meetings they did not move until the union threatened to strike. G4S was then forced to increase their offer to 10% on the basic wage for 2011. Any increase or adjustment to the basic automatically raises the overtime and housing allowance payments because these amounts are related to the basic wage. With this increase of 10%, the workers take-home package will be increased by 30% as total package. The next negotiations will start in August 2011.