By Benadetta Chiwanda Mia:
Employers’ Consultative Association of Malawi (Ecam) and the Malawi Congress of Trade Unions (MCTU) have highlighted the impact of the on-going fuel shortage on the nation’s productivity and employment.
A joint statement released on Wednesday, Ecam Executive Director George Khaki and MCTU Secretary- General Madalitso Njolomole called for urgent governmental intervention to address the escalating crisis.
“This persistent fuel crisis is severely disrupting daily business operations throughout the country. Many companies are struggling to maintain their production schedules, which is resulting in reduced output and financial losses,” reads the statement
As a result, the two organisations revealed that many businesses are compelled to downsize their workforce, leading to job losses and rising unemployment—a concerning trend for both employers and employees.
The statement emphasizes that both employers and workers are enduring prolonged queues at fuel stations, while also facing inflating costs of fuel available on the black market.
Additionally, rocketing transportation costs have burdened workers commuting to and from their workplaces, adding that the situation not only threatens workers’ livelihoods but also causes delays in the delivery of goods and services, as employees often miss work to secure fuel.
“The economic challenges are intensifying for businesses, workers, and consumers alike. Crucially, the ongoing fuel crisis will have detrimental implications for the short-term economic growth of our country and will obstruct the achievement of the Malawi 2063 Vision in the medium to long term,” it adds.
Ecam and MCTU have since urged government to take immediate and decisive action to resolve the fuel shortages and ensure a steady fuel supply to sustain the economy.
Proposed actions include enhancing fuel distribution systems, increasing transparency regarding fuel availability, and prioritizing foreign exchange for fuel imports.
“There should be enhanced fuel distribution systems, increasing transparency around fuel availability, and prioritizing foreign exchange for fuel imports. We must also implement flexible working arrangements to ease the burdens faced by workers and adopt effective cost-saving measures to protect jobs,”
Malawi has been grappling with fuel supply crisis for the past five weeks now due to forex shortage which has disrupted procurement of the commodity.
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