Privatization and employment opportunities in Morogoro Municipality
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Date
2006
Authors
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Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
A study on privatization and the livelihood of the people was conducted in Morogoro
Municipality in Morogoro Region. The general objective of the study was to assess
the impact of privatization on employment opportunities in Morogoro Municipality.
Specifically to: assess the employment opportunities before and after privatization;
assess the categories of employees; assess the living standard of laid off employees;
assess the attitude of employees towards privatization. Number of employees, skill,
job contracts and income are indicators of employment opportunities, number of
meals, housing, clothes and ability to manage education cost and asset ownership
were indicators of livelihood. Structured, unstructured questionnaire and direct
observation were used to collect data. The total sample size was 105 respondents of
which 85 respondents were from industries. Among them there were 4 top managerial
officers and another 20 respondents were retrenched employees. The employment
opportunities have decreased by 52% therefore null hypothesis was accepted. All top
managerial officers were skilled, 53% of other industrial workers were unskilled and
47% were skilled. About 76.5% of employees were temporarily employed. The
income of employees ranged between 30 000- 50 000 Tsh per month which was
inadequate for livelihood sustenance. Chi Square Test revealed no statistically
significant association (p>0.005) between training and salaries per month. The laid off
employees were 80% skilled; only 20% unskilled and 55% had an experience of more
than ten years. The income of some laid off employees was low and unsustainable and
fluctuates compared to earnings from formal sector therefore were not able to sustain
their livelihood. The highest meal cost was 5 000 Tsh and the lowest cost was I 500iii
Tsh per day and about 75% paid house rent of 5 000- 8 000 Tsh per month which was
difficult for them to afford.
The employees showed negative attitude towards
privatization. The study also revealed other findings such as sabotage, corruption and
abusive language. The study concluded that; the employment opportunities have
decreased, some factories were closed and some operated under capacity after
privatization, new technology introduced was very little; the living standard of laid off
employees was affected. The recommendations are; the government is required to
monitor and supervise employment opportunity; to review privatization contract
documents; to review workers salaries; preparations for the payment of the
retrenched.
Description
The Degree of Master of Arts in Rural Development
Keywords
Privatization, Employment opportunities, Employment categories, Laid off employees, Employees towards privatization