Minimum wage going back down???!!

ERB study proposes new minimum wage

2008-08-27 11:08:18
By Bilal Abdul-Aziz

A Consultant commissioned by the government to review minimum wage rates has suggested a scale of between 58,000/- and 80,000/- per month, it was revealed in Dar es Salaam yesterday.

The Labour, Employment and Youth Development ministry early this year commissioned the University of Dar es Salaam`s Economic and Research Bureau (ERB) to review lowest salary scales following complaints from employers and other stakeholders over the minimum pay rise announced by the government last year.

They specifically complained about narrow participation of stakeholders in setting the newly pronounced minimum wage rates and the process which the scales were set.

ERB was required to review the wage rates effected from January 1, this year, under the New Minimum Wage Order of 2007 and recommend accordingly.

ERB technical consultant Dr Deogratias Mushi unveiled findings of the study before representatives of employers, workers and government during a minimum wage setting dissemination workshop.

According to the expert, upon endorsement, the new national minimum pay will be 58,000/- for rural and 80,000/- for urban workers.

``The proposal has taken into consideration the cost of living. We have done an expert part of it, that`s making scientific calculations to obtain an appropriate amount. The other part, which will involve dialogue among actors, is done here at the workshop,`` he explained.

However, the ERB proposal was met by stiff opposition from stakeholders. On the other hand, the Trade Union Congress of Tanzania said the new rates did not take into account the real cost of living.

In an interview he granted The Guardian on the sidelines of the workshop, Tucta secretary general Nestory Ngulla described the proposal as inappropriate.

``The proposal does not reflect the actual cost of living of workers�they (ERB) have applied a very low base, the 35,000/- rate, which is outdated.

Our study way back in 1994/95 came up with 84,020/-, as minimum pay,`` he said.

According to the ERB report, which Dr Mushi presented yesterday, it proposes review on minimum wages by sectors as follows: Health services down to 80,000/- from between 80,000/- to 120,000/- and private security services from between 80,000/- and 105,000/- to 80,000/-.

Others include, agricultural services whose rate 65,000/- will remain unchanged and commercial, industrial and training, from between 80,000/- and 150,000/- to 60,000/- for trainees and 80,000/- for all others.

On mining, rates have been reduced to 230,000/- from 350,000/-, for small companies and remained unchanged, i.e. 350,000/-, for the big and international companies.

The proposed minimum wage for the transport and communication sector is between 150,000/- and 250,000/-, down from between 200,000/- and 350,000/-.

And for domestic services, including hotels, the rates are 80,000/- for domestic services and between 80,000/- and 150,000/- for tourist, medium hotels, restaurants, guest houses and bars.

Currently, the rates for domestic services and hotels are between 65,000/- and 90,000/- for those working in domestic services and between 80,000/- and 150,000/- for hotels.

Earlier, in his opening remarks at the forum, Labour, Employment and Youth Development minister Prof Juma Kapuya said the workshop was an opportunity to address all the issues before the proposed statutory wages were declared official.

``I expect no more holes after this meeting�we have the challenge to create jobs, but similarly, we have the role to take care of our workers,`` he said.

International Labour Organisation resident director Jurgen Schwettmann said minimum wages should be a tool of helping the country fight poverty.

``The amount needs to be discussed thoroughly, basing on data, and taking into account, (among others), the cost of living, inflation and competitiveness,`` he said.

Labour stakeholders were set to debate the proposals and endorse them before they were forwarded to the ministry for further action.

* SOURCE: Guardian

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