About 490 workers of the National Insurance Corporation (NIC) Limited have been laid off to pave a way for the firms restructuring process. The lay off comes after the approval of the cabinet for NICs restructuring following recommendations by Members of Parliament, international financial institutions and other stakeholders.
The Tanzania Union of Industrial and Commercial Workers Organization (TUICO) branch Chairman, Mr Michael Mwakyusa, confirmed in Dar es Salaam yesterday that workers were ready for the lay off provided they were paid their terminal benefits according to an earlier agreement.
Mr Mwakyusa said they were aware that about 5.1bn/- had been set aside for the exercise and from yesterday evening they started collecting their cheques. We are also aware that the Consolidated Holdings Corporation has been preparing the cheques since last (Tuesday) night
but since we were involved in the process from the beginning, we are not worried that things will not go according to the plan, said Mr Mwakyusa.
Yesterday, NIC issued a public notice announcing the termination exercise but in what could be seen as a controversy, the company said the offices would be closed for two days today and tomorrow and reopen next Monday. According to Mr Mwakyusa, they were earlier told by the management that they would be allowed to re-apply for jobs, but the vacancies have not been advertized.
The notice issued by NIC Board Chairman Dr Hamisi Kibola indicated that procedures for fresh recruitment of staff in line with the needs of the corporation had been put in place. During the implementation of this task, NIC offices will not offer any services for two days - Thursday and Friday, the services shall resume on Monday, February 9, 2009, during this period, the respective services shall continue to be provided by all NIC agents and brokers throughout the country, reads the notice in part.
Although Mr Mwakyusa said he had no much details on how the restructuring process would be carried out, Dr Kibola said in the notice that the termination was in line with an agreement that was reached between NIC employees through their Union, Government and CHC and arrangement for new staff recruitment was underway.
Contacted for comment on the development, the NIC Managing Director, Mrs Magreth Ikongo said through her secretary that all enquiries on the matter should be directed to CHC. CHC Director General Ms Edwina Lupembe told the 'Daily News' by phone that she was not in the position to talk on the issue and advised this paper to contact her colleague in the office, Mr Shaban Ngalupia, who she said was handling the matter.
Mr Ngalupia was not available for comment as he was reported to have been attending another important meeting at the CHC offices situated on Samora Avenue. On March last year, an agreement was signed before the High Court - Labour Division between representatives of NIC Management, Workers Union and CHC on the package needed to pay the workers and it was agreed after verification that 5.2bn/- was needed for paying the workers.