Tuesday, December 8, 2015

ATCL to trim workforce again as it eyes revival

SEBASTIAN MRINDOKO
THE government is finalising the process to restructure and strengthen its national flag carrier, Air Tanzania Company Limited (ATCL) in order to restore its lost glory.

The Permanent Secretary in the Ministry of Transport Dr Shaaban Mwinjaka said in an interview in Dar es Salaam over the weekend that the move will involve among others, retrenchment of some employees in order to retain essential staff only.
“We want to remain with a few but essential staff as a way of making ATCL an efficient company so that it can attract investors,” he said.
Dr Mwinjaka said after completing the restructuring process, it will then be possible to push its five-year business plan where TIB investment is expected to bail out the cash-strapped airline in order to procure new airplanes.
“The plan will see ATCL improve services to its customers and compete with other airlines in the region,” he said. ATCL was one of the problematic areas mentioned by President John Magufuli in his inaugural speech of the eleventh parliament in Dodoma, pledging to direct special attention.
Apart from ATCL, others in the list are the Tanzania Revenue Authority (TRA), Tanzania Electric Supply Company (TANESCO) and the Tanzania Railways Limited (TRL).
“These are critical trouble areas that we must address with all our energy and determination,” he said. “The government plans to revive the company and reduce the number of workers in a situation where the company owns only one aircraft,” he said.
In 2013, ATCL reduced the number of its employees to 172 up from 300 as it launched retrenchment plans aimed at cutting the number of workforce to at least 50 only. The firm has experienced a series of problems since its marriage with the South African Airline (SAA) that collapsed in 2006.
It is through the government subsidy and sources that the state-run airline continues to survive thus the downsizing of the workforce was the least painful way to save on unnecessary expenditure.

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