TRL workers blame management for delay of 16bn/- pension arrears

By David Kisanga

Tanzania Railway Limited (TRL)

 Workers of the Tanzania Railway Limited (TRL) are up in arms over payment delays of their 16bn/- pension arrears in total from the Railway Holding Company (Rahco) when their contract with the latter ended in 2007 and were transferred to the former.

Speaking at a meeting which was meant to discuss their problems in Dar es Salaam yesterday, Chairman of the Tanzania Railway Workers Union (TRAWU), Shehe Shughuli blamed the TRL management for having failed to press Rahco to settle their arrears.

 

The pension arrears are supposed to be paid to 1,501 workers who were previously under contract with Rahco before they were transferred to TRL. 

 

According to Shughuli, the case was filed in Tabora whereas early this month, the court ruled that Rahco should pay the pension to the workers, “we are not sure of whether we will get our payments because despite the ruling, TRL management has remained mum over the matter.”

 

He said the management is reluctant to provide them with reliable information on how and when the money will be paid. He called upon the government to prioritise their payment since they don’t know their fate.

 

TRAWU Secretary General, Ernest Kihwele said the government had promised to increase their minimum salary to 300,000/- as agreed early this year.

 

“We had agreed with the government that it would start implementing the new salary  scale in this financial year but up to now workers on a minimum salary scale are still getting a small package of 240,000/-,” said Kihwele.

 

When reached to comment on the matter, Transport Deputy minister, Charles Tizeba declined to comment, saying he was not in the country so couldn’t give much details.

 

For his part, TRL Director, Eng Kipallo Kisamvu speaking to this paper over the telephone, he said he is currently on leave but promised to respond to the issue once he returns to office.

 

The railway company has been facing financial constraints for years. In 2008, the government entered into a joint venture with an Indian firm, RITES consortium to manage TRL. Under the contract, the government owned 49 percent of the shares and the remaining 51 percent was left to RITES.

 

The Indian firm was granted a concession to run the beleaguered railway company through a 51 per cent stake in TRL and powers to pick the management team. 

 

In 2011, the consortium decided to surrender its shares after failing to run the company, for various reasons including lack of capital and poor management.

SOURCE: THE GUARDIAN