Fund mulls suing firm over pension contributions

28Feb 2016
Grace Kambaulaya
Guardian On Sunday
Fund mulls suing firm over pension contributions

The Public Provident Fund (PPF) has threatened to take to court the management of Tech Pack factory based in Dar es Salaam if it fails to remit pension contributions for their employees amounting to Sh78.5 million.

Anthony Mavunde

Speaking in the presence of Deputy Minister in the Prime Minister's Office (Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled) Anthony Mavunde, PPF Director of Operations revealed that since December 2014 the factory had not remitted any amount as the law requires.

The factory produces bags of different brands of cement. Mavunde said pension remittance was not an option but a legal obligation which should be honored without fail, adding that preparation of workers’ employment contracts should be ready soon.

“It is inconceivable that a factory with more than 200 employees can operate without observing labour laws such as contracts for workers with job description.

The anomalies must be addressed and my office will keep an open eye on this,” Mavunde stressed. He assured the workers of the government’s resolve to solve the challenges facing them and pledged persistent assessment of the situation by the government to make sure that all employers complied with labour laws.

“I have taken all of your concerns and I promise that the government is going to address this matter,” he said.

Asked about the average production and operation of the factory, the firm’s Human Resource Manager, Estar Mgoso, said at least 15 different brands of cement bags were produced at the factory.

The brands include Twiga Cement, Diamond Cement, Dangote Cement, Kilwa Cement, Kilimanjaro Cement and Zambezi Cement.

The meeting was also attended by the Labour Officer, Omari Sama, who warned that disregard of established labour laws fuelled misunderstandings and his office would not remain silent on deliberate breaches of regulations by employers.

“No one can understand or expect workers to remain silent after working for years without contract, proper salaries, no remission of their pension contributions and the like,” Sama said.

The situation came to light as PSI workers blocked the motorcade of the Prime Minister, Kassim Majaliwa, when leaving the premises of PSI as workers blocked the road to air their grievances.

Another worker informed the PM that they worked for 12 hours, seven days a week with a meager salary of Sh29,000 a week, which was not enough to sustain their families.

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