The influence of privatization on labor conditions in selected enterprises in Tanzania

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Kampala International University, College of Humanities and Social Sciences
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. xi 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.
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
Privatization, Labor conditions, Tanzania