Kiltex closes down, leaving 800 workers unemployed

In what can be described as a major employment blow in Arusha Region, one of the largest textile factories, the New Kilimanjaro Textile Mills (KILTEX), has closed its doors and made nearly 800 workers here now unemployed.

KILTEX`s management says the closure follows a long time review of its supply chain and production level, leaving directors with `no obvious alternative other than to propose the closure of the factory`.

An honorary contract to `cease employment pact` signed between the management and the workers` association on October24, 2007, the employer blamed the crisis on dilapidated production machines and lack of spare parts.

KILTEX, which was privatised six years ago, claims that it would have rather opted to pay out millions in redundancy payments to its 800 workers than continue to run at a loss.

`For a long time now, our production has been declining due to dilapidated production machines and unavailability of spare parts locally, the factor which failed us to run the factory smoothly,` reads part of the signed contract.

As a result the Directors had to order the closure of the plant for a period of three or four months beginning November 1, pending for the arrival of the imported modern machines.

Upon their arrival, all machines will be installed at Spinning and Weaving Picanol department to replace the dilapidated ones which its production capacity has depressed.

`With these dilapidated machines and its low production capacity, KILTEX could not afford to pay the new private sector`s minimum wages announced by the government recently,` the document reads in part. ?

Speaking soon after the announcement, the former worker of the disbanded KILTEX, Hassan Ibrahim said: `This is very disturbing news. It`s a real blow to the community right here in Arusha and its suburbs`.

For his part, Bashir Ally in turn said majority of workers had been crying when they heard the news that the factory would be closed down and that all workers had to be scrapped off.

`There`s so many of us working there. We don`t know what we are going to do now.` Ally said, adding: `This is a bitter economic blow to Arusha region.`

Majority of former employees of the factory, however, have expressed their grave concern over the payment of their terminal benefits.

`There are some workers who worked with the KILTEX for six years and got as little as 200,000/- in terminal benefits,` chipped in yet another former worker, Mwita Marwa.

They also complained about their overtime payments, which they claimed they had not been paid at all until the time the plant was closed down.

`We don`t know what will happen to our over time claims, because the factory has succumbed to the impact of low production?we would like to appeal to the government to stand for our rights,` noted Said Mohamed.

The Northern Zone secretary of Tanzania Union of Industrial and Commercial Workers (TUICO), Hassan Ngowo, confirmed to have received the workers` grievances over their terminal benefits as well as overtime payments and he promised to work on them accordingly.

The closure of the factory has sent shocking waves in the region and its suburbs where the KILTEX industry was a major employer, such as Daraja Mbili, Kijenge, Njiro, Mbauda, Sanawari, Kaloleni, Kimandolu among others.

In the early 1980s, Arusha was one of the largest sanctuaries for industries, but today the number of factories has dwindled as 60 per cent of them have been closed leaving a small percentage of the industry`s workers unemployed.