SPECIAL REPORT: The impact of Chinese employment on Tanzanians, is it a boon or bane?

By Francis Kajubi , The Guardian
Published at 06:00 AM May 29 2024
A side view of Fujian Hexingwang Industry Tanzania Co. Limited.
Photo: Francis Kajubi.
A side view of Fujian Hexingwang Industry Tanzania Co. Limited.

WITHIN the walls of Chinese factories, Tanzanians endure a harrowing ordeal as they grapple with long hours of unpaid overtime work, endure debilitating work-related injuries, and confronting the harsh reality of being deprived of vital medical care necessary for their healing and overall welfare.

China currently stands as the foremost contributor to Tanzania's foreign direct investments (FDIs) inflows, holding a substantial 30 percent share, signaling a significant economic partnership between the two nations.

In the manufacturing sector, the promise of FDIs to improve the lives of everyday Tanzanians remains unfulfilled.

Despite Chinese FDIs experiencing remarkable growth, the stimulation of Domestic Direct Investments (DDIs) stands at a mere 22 percent, falling short of the World Bank's recommended 50 percent threshold, as reported by the Tanzania Investment Center (TIC).

Disturbingly, instances of discriminatory wage and salary practices within Chinese manufacturing facilities are becoming more prevalent with each passing day.

The 2017 report "Chinese Involvement in Tanzania and Its Local Impacts" by Bucknell University highlights a troubling Chinese stereotype against Tanzanians, resulting in human rights violations at the workplace, in contradiction to local land investment regulations.

According to TIC, China-Tanzania trade volumes in goods and services reached US$5.41 billion (13.5tn/-) as of October 2023, decreasing from US$8.31 billion (21.2tn/-) in 2022. The United Kingdom leads with 20 percent of FDIs inflows, followed by Canada at 15 percent.

Despite these trade volumes, Chinese FDIs have not significantly improved the well-being of local employees or increased family incomes as expected.

Samson Simon, a 25-year-old resident of Mji Mpya Street in Kisemvule Ward, located in Mkuranga District, found himself inadvertently employed by Fujian Hexingwang Industry Tanzania Co. Limited on the 1st of July, 2020.

This hiring occurred after he had served as a temporary staff for the preceding 18 months. His recruitment transpired following a surprise factory inspection by the Occupational Safety and Health Administration (OSHA) in mid-July 2020.

Reflecting on this experience, Simon shared, "I was among the 20 casual workers out of the estimated 300 present at that time who were compelled to sign contracts without prior consent."

As per the contract reviewed by this journalist, Simon was engaged as a Scrap Attendant for the blast furnace under a two-year agreement, guaranteeing him a lump sum of 118,000/- until the contract's conclusion on July 31, 2022.

Following the contract's expiration, Simon reverted to being a casual worker from August 1, 2022.

Another individual, Selemani Yassin Mwamba, a 28-year-old casual worker at the same factory, raised issues regarding the durability of safety gear such as boots, gloves, and helmets. He emphasized that these crucial safety items frequently deteriorate within just seven days, falling short of the expected three-month lifespan.

He also highlighted the absence of health and safety representatives, which contradicts the stipulations of the Occupational Health and Safety Act 2003, Section 11 (4) (b). This section mandates that for a factory or workplace, there should be a minimum of one health and safety representative for every fifty employees or part thereof.

His stance resonates with Article 23 (3) of the Universal Declaration of Human Rights 1948, emphasizing that "Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection."

Mwamba's arguments are further validated by Article 23 (1) of the Constitution of the United Republic of Tanzania 1977, which asserts that "Every person, without discrimination of any kind, is entitled to remuneration commensurate with his work, and all persons working according to their ability shall be remunerated according to the measure and qualification for the work."

Raziah Muhuwa, the Human Resource Manager at Fujian Hexingwang Industry Tanzania Co. Limited, highlighted that factory workers should receive 5,700/- per shift based on the government's current wage benchmark. However, they are actually paid up to 12,000/-.

Muhuwa also pointed out the lack of Tanzanians in managerial roles, with Chinese individuals holding those positions. In case of workplace accidents, employees are supported during their recovery period, and they are able to take their annual leave as usual.

Mwanahawa Hassan Idd, a 24-year-old casual worker at Xingrong Plastic Waste Industry Company Limited, mentioned that she receives 8,000/- for a 12-hour shift. 

She expressed frustration with the Chinese factories, citing their preference for cheap labor and lack of concern for workers' well-being. She emphasized that working in Chinese factories doesn't lead to a better life but merely helps put food on the table.

A statement by Denis Mwanyelo, spokesperson at Unifly Corporation Limited, shed light on the employment of five individuals with disabilities in the cleaning department who work regular eight-hour shifts, raising concerns.

Mwanyelo explained that workers are paid 5,700/- for 12-hour shifts without receiving overtime pay, and emphasized the absence of contract employment opportunities at the factory. He also acknowledged the substantial turnover rate among the 200+ casual workers, with frequent exits and new hires being a common occurrence.

The spokesperson emphasized that casual workers at the factory are part of the Mkuranga District Trade Union of Industrial and Commercial Workers (TUICO), contributing 2,000/- per month to support its activities.

Expressing concern, he questioned the advocacy efforts of the TUICO Mkuranga branch in representing the rights of its members. He remarked, "It's puzzling to see the union collecting funds from members without transparency on how these funds are utilized to benefit the workers."

In defense of the fees, Mussa Kasian, Secretary of TUICO in the district, confirmed the collection of 2,000/- from members, explaining that the funds are crucial for covering legal expenses related to addressing violations of employment rights.

Kasian stated, "We work closely with ten factories that collectively employ 850 casual workers. In the last five years, we have handled approximately 70 civil cases. Given the dynamic nature of our workforce, our union experiences a continuous turnover as members depart daily and new individuals join regularly."

He mentioned that the typical employment contracts for Tanzanians last between three to six months, essentially serving as the probation period as per regulations.

For Suleiman Seng'enge, the Labor Officer in Charge in Mkuranga, stated that the adequacy of payments is subjective and varies based on individual interpretation, although the government had previously conducted research establishing minimum eight-hour workdays and monthly wages for factory workers.

Khadija Mwenda, Chief Executive of the Occupational Safety and Health Administration (OSHA), urged casual workers to report any violative investors to OSHA regularly.

She emphasized that the existing OSHA law protects the identities of those reporting such incidents.

Mwenda stated, "We are actively educating factory workers about their fundamental workplace rights. Additionally, we are providing guidance to investors on compliance with OSHA regulations."

She further mentioned, "We are conducting informational sessions with the Association of Tanzania Employers to ensure their members understand and adhere to government regulations."

Moving forward, OSHA has designated Mkuranga district as a special zone for its operations. It plans to conduct regular inspections of problematic factories starting next week.

Regarding the situation, Patrobas Katambi, Deputy Minister of the Prime Minister’s Office for Labour, Youth, and Employment, highlighted that factory workers have trade unions to address their grievances and uphold their rights.

Katambi mentioned, "If factory workers have welfare concerns, they should seek assistance from TUICO or the district labor officer for appropriate action."

On ensuring compliance from Chinese investors, Diana Mwamanga, the Investment Officer overseeing the China Desk, chose not to provide a comment on the measures being taken by the TIC.