Tanzania Workers Suspend Strike, Expect Minimum Wage Hike-Union

Tanzania's Trade Union Congress of Tanzania has suspended nationwide strike action, which had been slated to start over the weekend, having been given assurances that the minimum wage will be increased, a union official said Monday.

Sylvester Rwegasira, the TUCTA's acting secretary general, said union leaders have been reviewing the national budget report presented last week and decided not to proceed with the strike, with the finance minister also pledging to address the welfare of workers.

"We have been assured that [the minister] will announce the minimum wage increase during the ongoing budget session of parliament," he said.

The union has been involved in a long-running dispute over wages and working conditions with government since 2006. TUCTA has threatened to go on strike several times. The union has at least 320,000 members including government workers, customs officials, teachers and health workers.

Tanzania is Africa's fourth leading coffee and gold producer and the Tanzanian port of Dar Es Salaam is the main export/import transit port for landlocked Zambia, Africa's largest copper producer.

Tanzanian workers have been pressing to have the minimum wage tripled, and also want the government to reduce taxes on workers' salaries and improve retirement benefits.

Last week, Mustafa Mkulo, Tanzania's minister of finance and economic affairs, said taxes on workers' pay would be reduced to 14% from 15% during the 2010-11 ( July-June) fiscal year.

"The government is aware of the importance of the employees' welfare in improving efficiency and productivity. During fiscal year 2010/11, the government will take further measures in improving the employees' welfare," he said, without elaborating.

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