Some say rais wetu mchumi amelikoroga kwa mara nyingine tena in the Iddi Amin tradition ya ku-print money ili kukuza uchumi.Yeye ameona solution ni kuongeza mishahara bila kuongeza uzalishaji, matokeo yake haya hapo chini. Some say the move was needed to institute equity (or some semblance of it) in wages. Some say curbing inflation and increasing productivity would have been more like it. Your take? Massive layoffs loom in the wake of new wages 2007-12-27 09:55:16 By Correspondents Michael Haonga and Timothy Kahoho Massive layoffs of workers in the private sector are expected to affect over 30 per cent of the labour force if the government will not compromise with the employers over affordable rates of salaries before January 1, 2008. All employers in the private sector have been ordered to comply with the government set new minimum wages effective next month (January 2008) as announced on October 8, this year by the Minister for Labour, Employment and Youth Development, John Chiligati. But the Confederation of Tanzania Industries (CTI) has indicated that over 30 per cent of workers in the private sector could become jobless next month if no consensus is reached between CTI and the Government on the new rates of salaries to all workers of private sector. The government had in June 2002 set minimum wage of TShs. 35,000 for rural areas and TShs. 48,000 for urban areas but in October this year, Minister Chiligati announced the minimum wage of Tshs. 65,000 for all domestic workers and barmaids and TShs. 80,000 for those in manufacturing sector with effect next month. Reliable sources from CTI confirm that the entire labour force in private sector was about 500,000 people in which over 30 per cent of them would be terminated from employement. ``We have already submitted our proposals of new salary rates to the minister responsible with employment as the ones announced by him are not affordable rates, henceforth making over 30 per cent of the workforce in private sector be retrenched,`` argued Shah. He said the minimum wage rise from TShs. 48,000 to TShs. 80,000 was economically not viable in comparison with other countries. He argued that the wage of TShs. 80,000 is equivant to US $ 70.00 when the minimum wage in India is US $ 68.60, Bangladesh US $ 40.00, and Pakistan US $ 49.50. Others are Vietnam US $ 44.00, China US $ 42.50, Sri Lanka US $ 37.33, Madagascar US $ 28.00, Nepal US $ 27.00, Nigeria US $ 45 and Kenya US $ 79.50. According to Professor Mwesigwa Baregu the issue of coming up with the stipulated minimum wage was misshandled because it was not arrived at through a tripartite modality involving the three tripartite partners namely Government, employers and workers. Speaking to this paper in a telephone interview on the issue, Professor Baregu said the emerging tug of war would have been avoided through involvement of the stakeholders and in, for instance, a case by case approach modality for compliance affordability without resulting in uncalled for redundance or closure of industries due to being beyond reach in complying to the set minimum wage.