The influence of privatization on labor conditions in selected enterprises in Tanzania
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Date
2008-10
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Humanities and Social Sciences
Abstract
The study was carried in Dare s salaam city. It covered employment in five parastatal
privatized companies which are Tanzania breweries Limited (TBL), Tanzania Cigarette
Company (TCC), Tanzania Tele-communication Company Ltd (TTCL), Swiss Port
(DAHACO), and Bora shoes company Ltd.
The major objective of the study was to examine factors affecting labor conditions in
these privatized companies, condition of employee before and after privatization,
production in relation to its impacts to employees, and the existing· government
interventions and sought the effective policy recommendations for better employment
condition in privatized companies. The study employed both qualitative and quantitative
approaches. Interviews and structured questionnaires were respectively used. The
study involved a total of 293 respondents selected from the five privatized companies
using stratified sampling technique.
The key informants were officials from the Parastatal Sector Reform Commission
(PSRC), officials from Tanzania Investment Center (TIC), officials from the Private
Sector Foundation (PSF), and officials from the Ministry of Labor at Dares salaam.
The study was based on the theory that, privatization has increased employment
particularly and because of the high production the welfare of the employees assumed
to be improved generally. Findings from this study suggested that, the policy of
privatization brought by the World Bank and IMF created and helped the growth of
formal private sector in Tanzania.
The study suggests also that privatization did not bring unemployment in Tanzania
since some of the parastatals had already been closed down before privatization.
The study found also that the government does not make follow ups of the regulations
and rules that has set for its employees in Labor act of 2004 especially to these private
investments.
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The study recommend that, government should make strong follow ups of the
agreement signed during divestiture process especially on employees. Also the
government should come up with and clearly define the living wage for the employee.
The government should set employment acts, laws and regulations that states clearly
about employment contract, temporary and permanent employment, overtime payment,
benefits and allowances in all sectors
The government should set a time limit for the payment of the retrenched employees.
Lastly there is a need for a comprehensive employment policy, to guide labor and
employment issues in Tanzania.
Description
A thesis submitted to the school of postgraduate studies in partial fulfillment of the requirements for the award of a Master of Arts in development administration and management of Kampala International University
Keywords
Privatization, Labor conditions, Tanzania