Govt assures 216 WATCO workers of payments

MBEYA: THE government has assured 216 employees of the Wakulima Tea Company (WATCO) at the Katumba Tea Factory in Rungwe District, Mbeya Region, that they will receive all their due payments and benefits despite the recent closure of the factory.

The assurance was given by Permanent Secretary in the Ministry of Agriculture, Mr Gerald Mweli, during a stakeholder meeting held recently in Dodoma to discuss the factory’s future and the welfare of its workers, following public outcry and protests by affected employees.

“No worker will lose their rights. Every employee will get what they deserve,” Mr Mweli said.

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The high-level meeting brought together representatives from the Tea Board of Tanzania (TBT), including Vice-Chairperson Imani Kajula, the factory’s management, representatives of CRDB Bank, the Tea Growers Cooperative Society, and workers’ representatives.

Mr Mweli noted that the Katumba Tea Factory had been closed for five months, leaving hundreds of workers jobless and disrupting the income of over 15,000 smallholder tea farmers who depend on the facility.

Following deliberations, Mr Mweli said three key resolutions were reached, including reopening of the factory within three months following an agreement with CRDB Bank to provide necessary financial support.

It was also agreed that terminated workers will be reinstated, and arrangements will be made to compensate them for the five-month closure and the government will closely monitor the entire process to ensure fairness and justice for all affected parties.

“The government stands with the people of Rungwe, who will continue to grow and sell tea,” Mr Mweli reiterated.

He added that CRDB Bank had expressed readiness to finance current and prospective investors to ensure the factory resumes operations swiftly. The factory was shut down in May, triggering demonstrations by 216 former employees protesting their abrupt dismissal and demanding their unpaid dues.

The controversy intensified after workers received a notice of intended retrenchment that stated benefits would be paid “once new investors, partners, or proceeds from the sale of company assets become available.”

However, the notice did not specify any payment dates or procedures, creating uncertainty and anxiety among employees. In response, the TBT intervened to mediate and resolve the dispute affecting both Katumba and Mwakaleli tea factories in Rungwe District.