Mota-Engil reaches deal with Malawi workers, strike ends: $1bn rail project construction to resume

Work on the construction of $1 billion Kachaso to Nkaya railway project that passes through Malawi’s southern district of Neno is expected to resume on Monday after workers union agreed to end the strike when they reached a deal with on pay raises and working conditions, officials said.

Employees ealier turned down a 30 percent salary increment demanding that they be paid equivalent to foreigners whom they accuse of snatching their jobs.

But on Saturday workers union agreed to 30 percent pay hike on top of another hike given last month.

Officials close to the negotiations told Nyasa Times that union members will inform colleagues to report for work and resume the $1 billon rail project construction.

End of strike action at Mota-Engil $1 billion rail project
End of strike action at Mota-Engil $1 billion rail project

“We had long discussions and we all finally agreed. We are looking forward to the implementation and resumption of work on Monday,” said Jose dinis da Silva, Managing Director for Mota Engil Malawi.

“The agreement tackles all the concerns of our employees and brings increased benefits to all,” he added.

Once the railway is up and running, the Malawi will earn $8 million per year from concession fees.

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