Government Ensures The Rights Of 216 WATCO Employees are Protected

The government has assured 216 employees of the Wakulima Tea Company (WATCO), which owns the Katumba and Mwakaleli tea factories in Rungwe District, Mbeya Region, that it will fully oversee and ensure no worker loses their rightful benefits following the termination of their employment contracts.

The employees recently staged a protest demanding compensation after their contracts were terminated without receiving their lawful entitlements.

Speaking to the media in Dodoma, the Permanent Secretary of the Ministry of Agriculture, Mr. Gerald Mweli, said that the ministry held an open discussion involving representatives from the factory owners, the Tanzania Tea Board (TTB), CRDB Bank, representatives of WATCO workers, and the Rungwe District Commissioner’s Office.

Mr. Mweli stated that the meeting reached a mutual agreement to ensure that all employees receive their rightful dues in accordance with the law.

“The main challenge identified was that employees were laid off without being paid their legal entitlements. We have agreed that no worker’s right will be lost, and the ministry will continue to closely monitor the situation until it is fully resolved,” said Mr. Mweli.

Regarding the future of the tea market for farmers in Rungwe, Mr. Mweli revealed that an agreement was reached to ensure that WATCO, through its Katumba and Mwakaleli factories, resumes buying green tea leaves and restarts production within the next three months.

“I want to assure all farmers in Rungwe District that they will continue to cultivate and sell their tea leaves to these factories as before. CRDB Bank has expressed readiness to provide financial support to the current investor or any new investor who steps in to ensure continuous production,” he added.

Furthermore, Mr. Mweli stated that within the next two months, the employees whose contracts were terminated will be reinstated once production activities resume.

In another development, the Permanent Secretary issued a seven-day ultimatum to WATCO’s owners to come to the country for an in-depth discussion regarding the company’s loan with CRDB Bank, with the goal of finding a lasting solution to the issue.