Message Mar 11 Oct 2011 16:01

Talks To End Labor Row At Zambia's Chambishi Mine Deadlocked

Talks To End Labor Row At Zambia's Chambishi Mine Deadlocked-Union
Oct 10, 2011 5:07 AM EDT

Talks to resolve a dispute between management and miners at Chinese-owned Chambishi Copper Mine broke down Sunday after the two sides failed to agree on a new wage structure being demanded by the workers, a union official said Monday.

Chambishi management refused to meet the miners' demand for a 100% wage increment in a meeting involving union representatives and Rayford Mbulu, the deputy labor minister, Goodwell Kaluba, the general secretary of the National Union of Miners and Allied workers, told Dow Jones Newswires.

"The minister instructed management to increase the pay of workers during the meeting but no agreement was reached," he said by telephone from the copper mining city of Kitwe, in the Copperbelt province.

Operations at the mine were suspended for a sixth day Monday as workers at the 65,000 metric tons-a-year copper mine continued their strike in support of their pay claim.

Company officials could not be reached for immediate comment.

The miners want their pay increased by at least 100% to put them on a par with their counterparts at Vedanta Resources PLC's (VED.LN) Konkola Copper Mines and Glencore International AG's (GLEN.LN) Mopani Copper Mines.

Chambishi is operated by Chinese-owned NCFA Mining, a unit of China Nonferrous Metals Corp. (8306.HK), which also operates the 150,000 tons-a-year Chambishi Copper Smelter and the Luanshya Copper Mines.

Union officials have said Chinese-owned mines pay the lowest wages in the country.

Miners at Chinese-owned Sino Metals copper plant in the Copperbelt also went on strike Friday as a wave of wage demands continued to spread at Chinese-owned mines in the country following the election of Michael Sata, as president of Africa's top copper miner. Over the years Sata has been a strong critic of Chinese investments in Zambia.

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