China nonferrous metals company refutes seeks to renegotiate

[bingogo]

China nonferrous metals company refutes seeks to renegotiate the matter for industrial harmony

Saturday, 15 Oct 2011


China Non Ferrous Corporation Africa Mining Plc owners of Chambishi mine and smelter in the copper rich region in Zambia dispelled reports that the company awarded salary increases to its employees in excess of 100%.

Mr Rayford Mbulu deputy labor minister or national union of miners and allied workers general secretary Mr Goodwell Kaluba could not be reached immediately for comments immediately on the matter. However recent media reports stated that the government and the miners’ union had confirmed the revised salaries for workers to ZMK 2,000,000, a statement that management at the Chinese owned 150,000 tonne copper concentrate producer disputed in a statement.

According to an advertised statement in the local press, NFC Africa Mining Plc stated that at no time has management agreed to increase salaries for its workers by ZMK 2,000,000 across the board. The issue of the ZMK 2,000,000 was a directive by the Honourable Deputy Minister of Labour Mr Rayford Mbulu on October 9th 2011 during a meeting with NFCA management and representatives of the union.

Regrettably, the directive was issued without giving management an opportunity to be heard on the implications of the increment. The company has already made an appeal to the Honourable Minister of Labour. Given the development, NFCA Mining management seeks to inform the nation and employees of the company in particular that the company is fully committed to resolve all issues concerning the salaries and conditions of service within the legal framework provided under the Industrial and Labour Relations Act of 269 of the laws of the country.

Review of salaries and conditions of service will be done through the collective bargaining process as had always been the case. Negotiations with the union will commence as soon as the Government issues new guidelines on wages and conditions of service. The statement added that following a meeting with the Ambassador of the Republic of China held on October 11th 2011, labor Minister Mr Fackson Shamenda re affirmed the government’s commitment not to interfere in collective bargaining between employers and employees representatives.

Last week, the more than 2,000 workers at the Chinese run Sino Metals Limited paralyzed operations at the unit demanding improved wages and conditions of service. They later resolved to resume work after it was reported that management increased the wages by more than 100%. Most of the miners at the Sino metals were paid an average USD 100 per month, which they contend was not enough to meet their needs.

Government was forced to intervene together with the National Union of Miners and Allied Workers and met management at the NFCA plant lying more than 400 kilometers from the capital, Lusaka. It was later reported that workers had resumed work after management the union and government officials had agreed that salaries be revised to ZMK 2,000,000 per month across the board, a statement which management has disputed as incorrect and seeks redress under the labor laws.

China Non Ferrous Metals Africa Corporation operates both Chambishi Mines and the Luanshya mine. At Luanshya mine where the company invested USD 50 million to buy off the mine management has invested a further USD 400 million to construct 60,000 tonnee open cast mine, expected to be operational by December this year.

Zambia was recently characterised by widespread strike actions at Chinese and non Chinese operated companies with Zambians demanding for improved wages after President Mr Michael Sata rejected the current USD 86.000 living wage that the country provides to its people in formal employment.

Mr Sata, Zambia’s fifth President who ascended to power on September 20th 2011 with 1,170,966 votes representing 42 percent of the total vote cast against former president Rupiah Banda who emerged second with 35% of the votes has since instructed the ministry of mines and other government operatives to revise the living wage to avert poverty among Zambians.

Mr Sata, 74 has been perceived to be a strong critic of Chinese investments in Zambia and recently urged China to respect labor laws of the country with emphasis to revise workers’ salaries to make them compatible with the living conditions in the country.

[bingogo]

Tue Oct 18, 2011 10:10am GMT

By Chris Mfula

LUSAKA, Oct 18 (Reuters) - Zambian miners at Chinese-owned NFC Africa Mining went on strike again on Tuesday after the company refused to raise their wages by nearly 100 percent as agreed last week, the National Union of Mine and Allied Workers said.

"The workers have again gone on strike. They were promised a pay rise of 2 million Zambian kwacha ($400) per month, which they have not been given," the union president Mundia Sikufele told Reuters.

About 2,000 workers at NFC Africa Mining, majority-owned by China Nonferrous Metals Mining Corporation, first went on a strike earlier this month demanding higher wages.

Sikufele said the workers called off the strike earlier this month after the government asked the management to give them a 2 million kwacha pay rise on Oct. 10.

"But the government, which proposed the 2 million kwacha is now saying the right procedure is for the workers to allow the union to negotiate with the management," Sikufele said.

Long-time opposition leader Michael Sata won election in the southern African country on Sept. 20 on a populist platform that included criticism of foreign investors and promises to improve the lives of workers.

In his first official meeting as president, Sata saw Chinese ambassador Zhou Yuxiao in an effort to dispel fears his sometimes fierce anti-Chinese rhetoric while in opposition would translate into a shift in investment policy.

He also made clear that Chinese companies, which have ploughed more than $2 billion into developing the mining sector, would not get preferential treatment. ($1 = 5005.000 Zambian Kwachas) (writing by Olivia Kumwenda and Chris Mfula; editing by James Jukwey)