The chairman of  the Zanzibar Association of Tourist Investors (Zati), Mr Abdulsalmad Said, told BusinessWeek by telephone  that paying such inordinately high salaries would be possible if jobs were reduced.

Mr Mabrouk Omari Mohamed, who is also the Chairman of the Zanzibar Chamber of Commerce, had earlier warned that the move would force many lay off  employers to remain afloat.

He warned that the new pay was bound to cause a knock down effect on such other sectors like agriculture and fishing. Prices of goods and services, he said would likely jump up as producers adjust to cope with the added costs.

Speaking to BusinessWeek. Mr Said noted that Zati was ready to meet the government and chart the best way to handle the situation because it was every member’s concern that the ministry of Labour did not make proper consultations before  arriving at the new salary rate. 

Mr Said insisted  thet the decision had a serious effect on businesses and foreign liaisons. He lamented that there were no proper mechanisms to determine the minimum wage.

Speaking from Nairobi yesterday, a former governing council member of the Tourism Confederation of Tanzania, Mr Simai Mohammed Said, appealed to the government to ensure policies that were injurious to the fragile economy were avoided.

“I condemn the minister of Labour for taking the unilateral decision that will surely not only undermine the government but also our own economy,” said Mr Simai. He urged the government to intervene to avert job losses if the new minimum wage was paid.

The Zanzibar Employers Association (Zanema) chairman, Mr Nassor Maharouky, said although some two people from the association were invited to see the minister, outcome of the meeting had not been known to members.
 “It has been an abrupt and shocking decision whose implementations will adversely affect the economy because businesses were not prepared for these changes,” said Mr Maharouky in a telephone interview.

However, he said the association was no opposed to pay rise, only demanding that such a move be taken after making proper consultations and planning. The official said they are planning on modalities to present their grievances to the government.

Employers in Zanzibar have threatened job cuts should the 100 per cent raise be effected. They protested that relevant government authorities did not consult them as appropriate before awarding the wage raise which they said could not be affordable to many businessmen, particularly in the tourism sector at this time.

The minister for Labour in Zanzibar, Mr Haroun Ali Suleiman, who announced the new wages at the weekend has maintained that employers should start paying the new salaries next month.

 He has reiterated that the law was followed in awarding the increment and said he would not back down. “But those who have issues with this should see me personally,” he said on Tuesday when reached for comment.

According to Mr Suleiman, the proposed changes for the private sector were done following consultations with respective organs. The minister added that the goverment decided to review the wages because the cost of living had risen since the minimum wage was last increased in in 2008.

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