Tanzania: TPAWU concludes Collective Bargaining at Illovo’s Kilombero Sugar

On 25 April, the Tanzania Plantation and Agricultural Workers Union (TPAWU) concluded negotiations at Kilombero Sugar Co. (KSC), with a wage increase of 10 percent across the board. Kilombero Sugar reports 880 permanent employees and 2,160 seasonal workers. Inflation rate was quoted at 9.8 percent. (Monthly wages for the Paterson Grades A to C were estimated in 2012 at a lowest rate of USD 77.00 and a highest of 105.00.)

In addition to wages, some terms and conditions of work were revised. Among them:

  • Nursing mothers have a 2-hour breast feeding period per day until babies are 2 years old.
  • House allowance was increased by 5 percent, representing 15 percent of employees’ basic salary.
  • Workers’ dependents will include those up to 25 years of age, up from the previous 23 years.
  • In case of death, the employer shall grant a coffin, shroud, condolence of 2-month wages, transportation of the deceased, and transportation of personal effects. The company will pay a condolence of 200,000.00 Tanzanian shillings (USD 125.00) in case of a death of a spouse.
  • Pick-up routes for employees will be extended, and tractors will no longer be used to transport personnel.
  • Service bonus will be a 3-week basic wage for each year of service up to fifteen years.
  • Employees will receive an in-kind monthly allowance of 7 kg of sugar.
  • Employees will be paid a bicycle allowance of TZS 15,000.00 (USD 9.40) per month when using the bicycle to/from work and if registered with the company.

Background Information

Kilombero Sugar Co. (KSC) is a unit of Illovo Sugar, which holds a 55 percent stake, in partnership with the Tanzanian government (25 percent) and ED & F Man, a London-based commodities trader (20 percent). Kilombero has increased production by 15 percent in 2012-2013, reaching 129,737 tonnes, up from 113,100 tonnes the previous season. Tanzania is a sugar deficit country, with an estimated domestic demand of half a million tonnes per year, against production of 300,000 tonnes.

On 16 April, a statement by Illovo Sugar at the Johannesburg Stock Exchange (JSE) said that company earnings and headline earnings per share for the financial year ending on 31 March 2013 “are expected to be between 40% and 45% higher” than for the year ending on 31 March 2012. Moreover, earnings per share for the same period “are expected to be between 95% and 100% higher” because the 2011-2012 financial year was negatively affected by the failure of the Mali project.


Permanent link to this article: http://www.iuf.org/sugarworkers/tanzania-tpawu-concludes-collective-bargaining-at-illovos-kilombero-sugar/

1 comment

    • Miriam Wanyama on May 9, 2013 at 9:33 am

    Comrades,this is good work bearing in mind that you had inflation rates as a factor to affect your negotiation. Am happy that you did not just dwell on wage increament but also looked at other issues like breast-feading and abolition of tractor transport for workers. These are crucial healthy and safety issues that could affect production if not adressed in time. Other health and safety issues can also be looked at, for example have a day care facility for Working Mothers than have them away for two hours until two years. It is very convenient and more economical considering the man-hours that could be lost while these Mothers are away…think about it. KUSPAW in Kenya has proposed for the day care facility instead of breastfeeding away from job. We just hoping that we manage to convince the employer and you can come over for a case study. Otherwise this is very good work and we shall continue asking for more.

    Miriam Wanyama, KUSPAW, Kenya

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