Tazara lost USD1.16m to strike, says management

The struggling Tanzania-Zambia Railway Authority finally resumed train operations between Zambia and Tanzania at the weekend, but not without paying a steep price, in the form of losses in excess of US$1.16 million and increasing client discontent.

For over two weeks, as of May 12 to Friday of last week, the Tanzanian workers of the state-owned railway monopoly once again laid down their tools demanding their due back pay.

In that period, not only did Tazara lose the stated revenue, they further deepened growing customer mistrust and confidence in their ability to deliver reliable and consistent services.

A statement by TAZARA Head Office in Dar es Salaam said: “Apart from losing the customers’ confidence and inconveniencing members of the public, many of whom are vulnerable groups in rural communities, the Authority estimates that at least US$1.16 million has been foregone in revenues in the last two weeks when employees in Tanzania were on strike, even with the current constricted low levels of production.”

Businesses were gravely hurt with their cargos stuck on either side of the borders and passengers, many of whom are vulnerable groups from rural communities to whom rail transport is the only affordable and available means of transport for social purposes, business and medical care access.

Even though normal operations had continued between Nakonde and New Kapiri-Mposhi on the Zambian side, with passenger trains running between New Kapiri-Mposhi and Nakonde at the border, the cycle remained incomplete as trains would not make it across the border.

The ordeal was eventually ended by court order after a recent declaration by the Labour Division of the High Court of Tanzania that deemed the strike illegal.

A statement from TAZARA Head Office in Dar es Salaam circulated to the media at the turn of the week said freight operations resumed early last week but cross-border passenger services only begun on Friday.

The court issued an order on May 26, 2014 directing the striking employees to immediately resume work.

The employees complied with the order and returned to work the very next day.

It is formally noted that the unionised workers of Tazara in the Tanzanian side that covers all stations between Dar es Salaam and Tunduma, illegally withdrew their labour services on 12 May 2014, demanding unpaid salaries for February in some cases and for March and April 2014 in others.

Consequently, Tazara suspended both freight and passenger operations between Dar es Salaam and Tunduma and in which time it suffered major financial losses while the public was also seriously affected with many left stranded at train stations all along the 1,860-kilometre stretch of the railway line on both sides of the border.