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MUZ advises mining companies against laying off employees

MUZ advises mining companies against laying off employees
Written by Fridah Zinyama
Thursday, November 13, 2008 6:11:58 PM

THE Mine Workers Union of Zambia (MUZ) has said it is unfortunate that somemining companies want to lay off part of their workforce because of increased production costs and the slump in copper prices.

In an interview, MUZ president Rainford Mbulu said most of the mining companies had projected to make profits before copper prices reached an all time high of above US$ 8,500 per metric tonne.

“Most of the mining companies came into Zambia well before prices had increased on the international market,” he said. “Most of them had projected to make profits when copper prices were going for 69 cents per pound.”

Some mining companies such as First Quantum, Konkola Copper Mines and Mopani Copper Mines have put some of their expansion projects on hold and are threatening to lay off some of their employees due to low production and increased costs.

Mbulu said it was unfair for mining companies to quickly start laying off employees when they were still able to make profits using their previous projections.

“The management of these companies need to use level headedness when dealing with the plight of employees,” he said. “They need to ask themselves what they did for their employees and the communities they live in when prices of copper were good and they were making profits.”

Mbulu said some of the mining companies had not yet even started remitting the three per cent royalty taxes which government had adjusted this year.

“So if this is the action they will be taking, the companies would not have seriously done anything to benefit the people of Zambia,” he said.

Mbulu said it should be expected that copper prices will keep on fluctuating on the international market and it was quite unreasonable for the companies to make such drastic decisions.

“We need management in these companies to make decisions that will benefit their employees,” said Mbulu. “We need to put our heads together to quickly resolve this issue which is threatening the livelihood of many families and the growing economy of the Copperbelt.”

Labels: LABOUR, LAYOFFS, MINING, MUZ, RECESSION

posted by MrK @ 6:13 PM