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Quarterly Bulletin

 

Bulletin 63
1st Quarter 2005

 

MALAWI SMALL TOBACCO GROWERS: WORKING AND LIVING CONDITIONS 

We publish a study done by the Malawi-based Centre for Social Concern (CFSC) in collaboration with the JCTR.  Like the JCTR, the CFSC was established to promote social justice with special attention to the poor. This study focused on the socio-economic, working and living conditions of the smallholder tobacco growers and their families on tobacco estates in Lilongwe, Mchinji, and Mzimba

 

Since its establishment, the Centre for Social Concern (CFSC) has recognized the problems faced by smallholder tobacco workers and their lack of protection.  Because of these problems, a study was therefore commissioned by CFSC in collaboration with the JCTR to assess the socio-economic, working and living conditions of the smallholder tobacco growers and their families on tobacco estates in Lilongwe, Mchinji, and Mzimba districts.

BENEFITS OF THE STUDY

It was envisioned that the study results would help Unions to open up debate on the production and purchase of tobacco in Malawi.  Specifically the results of the survey would help Tenants and Allied Workers Union of Malawi (TOTAWUM) in its bargaining position with the major stakeholders in the tobacco industry.  Moreover the results would also strengthen TOTAWUM demand for better living, working and social economic conditions for its members involved in tobacco production.  Finally, it was seen that would give input into the newly drafted Tenancy Labour Bill to be tabled in Parliament in the near future.

STUDY METHODOLOGY

The study methodology involved the analysis of the available literature on the tobacco industry.  It also involved consultations with a wide range of stakeholders aimed at obtaining their perception of the factors affecting the operations of the industry.  In addition, a field survey was carried out which covered the districts of Lilongwe, Mchinji and Mzimba.

The choice of the districts was based on the fact that these were areas where most of the tobacco estates were found in Malawi.  The data in the field was collected through the use of a questionnaire that was written in Chichewa.  The technical team suspected that a lot of respondents seemed not to be free to give answers in the presence of their managers.  In order to fill in the gaps, the missing information was collected through Focus Group Discussions (FGDs).  The FGDs were conducted in private, away from the work place of respondents.  It was observed that the respondents discussed sensitive topics more in FGD than through the individual interviews.

MAIN FOREIGN EXCHANGE EARNER

Tobacco production is associated with economic development in Malawi.  It provides employment to a cross section of Malawians and contributes over 70 per cent of the country’s foreign exchange earnings.  The powerful forces behind Malawi’s tobacco-dependent economy are the US subsidiaries Limber Leaf, Stancom and Demon.  These companies together purchase over 95 per cent of the tobacco crop and sell it to global cigarettes firms like Philip Morris and British American Tobacco. 

The study results have revealed that the prices of tobacco prevailing on the auction floor have been generally declining over the last few years.  The  cause  for  the  low  prices  at the auction floors has recently been a subject of controversy between the tobacco producers and tobacco buyers.

On one hand, the producers believe that the low prices are as a result of deliberate manipulation of the international buyers who have developed monopolistic behavior of fixing tobacco prices for their own benefit.  The producers believe that the price fixing by the multinational tobacco buyers coupled with various government levies on tobacco has grossly reduced their profit margins.  On the other hand, the buyers blame the low quality and the presence of plastic in tobacco bales as the real contributors to current low tobacco prices at the auction floors.

EXPLOITATION ON ESTATES

The study revealed that tobacco workers live in extreme poverty and are often subjected to high levels of exploitation.  It was reported that the situation has become more serious since the advent of market liberalisation.  The majority of the tobacco workers (tenants and contract workers) work without contracts written  or  oral.   It  was   revealed that their produce is under-priced due to deliberate under-grading done by the estate owners.  This practice leaves most of the estates workers with huge debt.  Furthermore, many landlords on tobacco estates deny workers basic necessities such as medication, food when they run out of their monthly allocation, safe drinking water and housing.  In this survey, some respondents reported to have gone without food for two or more days during the time of the survey.

Moreover, estate workers are not entitled to annual or maternity leave, transport facilities, medical scheme, death gratuity, etc.  If estate workers fall ill, they are neither entitled to sick leave nor provided transport to go to the hospital.

It was also established that the degree of women’s involvement in tobacco production is equal to that of men.  In addition to tobacco production, women are also involved in domestic work in the household.  Despite their heavy schedules on the tobacco fields and the household their contributions are not directly rewarded by the estate owners or their husbands.  In one of the focus group discussions, the women claimed to have been subjected to mental, sexual and physical abuses from landlords and their own husbands.  The majority of those interviewed claimed to have been sexually harassed or even raped by their own masters.

Most estates do not provide services for school-going children, leading to high incidences of child labour on tobacco estates.  It was established that although primary school is free in Malawi, children become part of the workforce by working along side their parents on tobacco fields.  There was also a lot of evidence that children as young as 10 years become full time workers on these estates and earning far much less than adults.

STUDY RECOMMENDATIONS

The study strongly recommended that there should be signed contract agreements between the landlords and estate workers (seasonal labour and tenants) that will stipulate what the landlords will provide as support services to the workers and how much lump sum will be paid  to the workers at the end of the season.

The study also recommended that the government through the Ministry of Labour should ensure that the signing of contracts by both parties be made compulsory.  In addition, the landlords should have farm record books in which all the advances made to estate workers are recorded at prevailing current prices.  This will minimize cheating the estate workers at the end of every season.

The study established that estate workers are usually helpless  people  whose welfare is at the mercy of their landlords.  In the current political dispensation which promotes freedom of expression  and respect of human rights, the circumstances surrounding the estate workers can no longer be ignored or tolerated.  The study further strongly recommended for the promotion of trade unions within the tobacco estates.  Their mandate would be to ensure that estate workers have recourse to collective bargaining to express their grievances to their landlords and also to be used as channels for communicating all forms of abuse at work place.  In addition, TOTAWUM should be carrying out active publicity campaigns of forming trade unions.

In order to eradicate child labour, the study recommended that government should make primary school compulsory for all school going age groups.  This can be enforced through setting up of village-level monitoring committees.  The study proposed that the estate owners should have a social obligation to provide socio-economic amenities in areas where there are no schools.

The study recommended that the draft Tenancy Labour Bill that was prepared by the Ministry of Labour be tabled in the next sitting of Parliament.  It was learnt that this Bill was drafted by the Ministry of Labour in 1995 and was sent to Ministry of Justice in 1997 where it has been without being acted upon.

The draft legislation is a very important tool designed to address all sorts of labour disputes at workplaces.  This Bill emphasizes written contracts between tenants and landlords covering things like transportation of tenants, food provisions and accommodation, and fair loan repayment schemes.

Centre for Social Concern
Lilongwe

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