PRESIDENT John Magufuli has directed pension funds to invest in profit-driven projects, including industries, where profit and employment opportunities will be created instead of focusing on infrastructure development.
Dr Magufuli has also agreed to reduce
the number of pension funds, promising to complete the work by 2017,
directing the Minister in the Prime Minister’s Office (Parliamentary
Affairs, Policy, Labour, Employment, Youth and the Disabled), Ms Jenista
Mhagama, to start working on the matter.
President Magufuli made the remarks when
he led thousands of Tanzanians in joining fellow workers all over the
world to celebrate the International Workers’ Day, which was held
nationally at the Jamhuri Stadium in the new capital city designate.
He said building industries and
increasing employment opportunities will provide double profits,
including membership from the industrial employees.
“In investing in a culvert, the benefit
will be a short-term one as opposed to investing in industries, which
will provide long-term benefits and contribute to the growth of the
nations’ economy through increasing employment opportunities, membership
and production of goods,” he noted.
Dr Magufuli agreed on the need to scale
down the number of pension funds in the country, promising to complete
the work within the next one year.
He, however, cautioned that looking at
the history that established the pension funds, caution must be taken
when scaling down the number of the pension funds, while directing Ms
Mhagama, who is responsible with the portfolio, to take up the matter.
The president said that companies that
do not remit contributions to pension funds have been directed to do so
immediately, noting that even the Treasury had not remitted 710bn/- but
have now remitted 500bn/- to the PSPF.
“I am directing the Treasury and other
companies to remit the contributions every month.” Dr Magufuli stressed
that every employee was entitled to join a trade union or form one in
their workplaces, which is a right that should not be denied by their
employers. He, however, cautioned workers to refrain from using the
unions as a political mouthpiece or instrument.
The president expressed his interest to
see more people joining pension funds, especially the health insurance
fund, noting that the National Health Insurance Fund has established the
Community Health Fund (CHF) for rural people.
Dr Magufuli also noted the importance of
workers’ contracts, noting that the laws governing the work will be
amended to include stern measures that should entail heavy penalties for
employers who will fail to uphold any part of the requirements of the
laws.
Earlier, Trade Union Congress of
Tanzania (TUCTA) Secretary General Nicholas Mgaya requested the
government to reduce the number of pension funds in the country to two;
one serving for the private sector and the other for the public sector.
Mr Mgaya said TUCTA believed in the current government in power and
hoped that working conditions and remuneration for the majority of
workers, who are the main drivers of government revenue, will be
improved.
“In this, we recommend to the Fifth
Phase government to come up with salary policy that will govern
improvements of salaries and allowance for workers in the public and
private sector,” he said.
Mr Mgaya noted that since the 5th Phase
government came into power, hope has been restored among Tanzanian
workers, as the government is implementing the rule of law in the
country “contrary to what was the case before’’.
He said in the next five years of the
5th Phase government workers will enjoy better salaries due to ongoing
efforts to increase revenue as opposed to previous governments.
Mr Mgaya commended the steps taken by
government to rescue the PSFP by paying its debt and for retirees to
start receiving their pensions, stressing that pension fund employees
should stop giving themselves loans, which they cannot pay back
No comments :
Post a Comment