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Govt scales down minimum wage
2008-01-11 09:53:48
By Hannah Mwandoloma
The government yesterday announced that it had reduced the minimum wage for private sector workers in the manufacturing subsector, particularly industries, from 150,000/- to 80,000/- per month.
Labour, Employment and Youth Development minister John Chiligati said at a Tanzania Private Sector Foundation (TPSF) breakfast session in Dar es Salaam yesterday that the government had decided to review the wages downwards after lengthy discussions with stakeholders and the wage board.
Chiligati elaborated that the amendments were in respect of workers in export-oriented and labour-intensive industries.
``These amendments have been made to accommodate genuine fears of losing external markets to competitors if our exports become too expensive,`` said Chiligati. He said the government considered a situation where industries had to either wind up their businesses or lay off a big number of workers. To save both employer and worker, the government resorted to flexible options.
In her welcoming remarks, TPSF chairperson Ester Mkwizu said that the increase in electricity tariffs and statutory minimum wages would increase the cost of production in the private sector.
Mkwizu cited a recent study by the Confederation of Tanzania Industries (CTI) which showed that an increase in the statutory minimum wage from 48,000/- to 150,000/- alone would erode the manufacturing industry\'s unit selling price margins by between 73 per cent and 800 per cent.
``We recommend that an in-depth study on the social and economic implications of the new minimum wage in the private sector and economy as a whole be carried out,`` said Mkwizu.
CTI executive director Christine Kilindu said that consultations should continue to ensure workers benefit and industries continue to be sustainable to create more jobs.
SOURCE: Guardian
Hivi hawa waheshimiwa wakati wanapandisha hiyo mishahara hawakufanya utafiti kwanza wa uwezekano wa makampuni kuweza kulipa hiyo mishahara na madhara yake kwenye uchumi wa nchi kwa ujumla?
Inaonesha ni jinsi gani watanzania tunavyofanya mambo kienyeji tu. We have a long way to go.
chiligati alikuwa mkuu wa wilaya temeke,hata tv alikuwa hana nyumbani kwake,kaja nunua wakati amepata kuteuliwa kuwa naibu waziri wa mambo ya ndani
chiligati alikuwa mkuu wa wilaya temeke,hata tv alikuwa hana nyumbani kwake,kaja nunua wakati amepata kuteuliwa kuwa naibu waziri wa mambo ya ndani
Hivi hawa waheshimiwa wakati wanapandisha hiyo mishahara hawakufanya utafiti kwanza wa uwezekano wa makampuni kuweza kulipa hiyo mishahara na madhara yake kwenye uchumi wa nchi kwa ujumla?
Inaonesha ni jinsi gani watanzania tunavyofanya mambo kienyeji tu. We have a long way to go.
UNASHANGAA YA MUSSA!!!!
2. STEPS TAKEN TO DEAL WITH THESE COMPLAINTS
Initially, following the steps taken by employers to reduce their workforce, the Government extended the effective date of the new wages from Nov 2007 to Jan 2008 so as to allow employers to budget the new wages. This step helped in containing the wave of workers being reduced from employment.
Secondly after receiving complaints from Employers and Employees especially from the sectors of Industry, Agriculture and Mining the Government ordered the Wages Boards of these sectors to meet
with the complainants, consider their views and work on them to find solutions.
The Board after considering complaints by mine owners and recommendation to Government, a decision has been reached that the minimum wage of Tshs 350,000/= is to remain in force; except that the fringe benefits such as food, transport, housing, medical etc allowances are being rescinded from the Wage Order and instead will be subject to negotiations between employers and employees. This indeed is the task of workers unions within workplaces.
These recommendations – amongst others – took into account the following factors.
(i) Each sector considered condition of employment along with profitability and cost of living with employers' ability to pay.
(ii) That the new minimum wages for every sector will be applicable to all employers in that sector whether in rural or urban areas; because there is no difference in rural/urban costs of living.
(iii) That since within the sectors there are differences in volume of production and capital investment the Wages Boards have fixed different minimum wage rates depending on size of
income of the employer.