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Zambia KCM Says Workers Unrest Eases, To Resume Labor Talks
DOW JONES NEWSWIRES
The worker unrest at Zambia's largest copper miner, Konkola Copper Mines has started easing with most miners reporting for duty on Friday and Saturday morning, KCM's head of media relations told Dow Jones Newswires Saturday.
Gerald Mulwanda said that more than 90% of the workers had reported for duty and the company is set to resume labor negotiations with the miners' unions, which were suspended on Wednesday following workers riots. KCM is majority-owned by London-listed Vedanta Resources and is expected to produce around 50% of Zambia's total copper output this year.
"The situation at Konkola Copper Mines plc is returning to normalcy after disruption to work caused by an illegal three-day strike." he said.
KCM workers are demanding a 30% salary increment and improved benefits, the local miners are also complaining that expatriates are paid higher salaries than them, despite having similar qualifications and skills.
According to union officials, the anti-riot police and KCM mine security had to be called in to disperse a group of miners on Friday morning who had gathered at the entrance of the mine premises threatening to riot.
By the time workers went on strike on Tuesday, KCM was yet to respond to their demands, however, company sources said that the workers are unlikely to be given the 30% increment because KCM is implementing cost cutting measures as it moves to start output at the deep mine project, expected to more than triple annual copper ore output to 7.5 million metric tons from the current 2 million tons. The project is expected to come on stream in 2011.
KCM has threatened to dismiss workers who continue to stay away from work. The company is still assessing production losses from the strike.