Maravi

MUZ asks Chiluba to shut up over mines

MUZ asks Chiluba to shut up over mines
Written by Lambwe Kachali
Thursday, December 04, 2008 5:04:51 AM

MINE Workers Union of Zambia (MUZ) president Rayford Mbulo has asked former president Frederick Chiluba to shut up because he caused the untold misery to mine workers in Zambia. And Mbulo charged that mine owners are just being selfish by laying off workers.

Reacting to Chiluba’s statement that job losses in the country were expected, Mbulo said it was unfortunate that instead of offering solutions to avert problems in the mining sector, Chiluba seemed to be in support of shedding off the already impoverished mine workers.

Mbulo said Zambians had not forgotten how Chiluba dubiously privatised the mines, and how he failed to pay miners’ their terminal benefits.

“Chiluba should not forget that Zambians are still bitter, especially in the mining sector because in Konkola Copper Mine we had a period of over four years when mining workers could not get any terminal benefit. Up to now workers are getting mediocre packages when they retire,” Mbulo said.

“And in Mopani and KCM [Konkola Copper Mine] these investors were excluded from paying any contribution to the National Pension Scheme Authority. Chiluba must know that this joblessness is not justified because mine owners could have looked for options. They have sent workers into the streets, meaning that workers will only walk away with a maximum K11 million. Is that justified?”

He said it was wrong for Chiluba to link the Zambian crisis to that of America.

“He is talking about the credit crunch in America as one of the reasons that has compelled the mining companies to put people on redundancies. As a union, understand that in America this is arising out of the credit crunch system where people had been buying without having cash and also arising out of the mortgage system where people were lent money by the banks without securing these loans. So the banks ran out of cash,” Mbulo said. “Chiluba must understand that we are dealing in a commodity that is not sold like oranges at the market. Copper is sold on contract.

You enter into a contract with buyers, agree and you hold on to that buyer for a reasonable period of time; meaning that even the copper that we are producing now, there is a very high probability that it could be sold at prices that are prevailing when the copper prices at the London Copper Exchange were still high. So for the former president to refer our case and liken it to what is happening in the financial market globally is actually something that is worrying and we feel extremely disappointed.”

Mbulo said if Chiluba knew that there would be job losses in the mining sector, why did he remain silent and wait for the situation to worsen.

“He should know that when the mining industry crumbles, the entire economy shall crumble because it [country] will have what we call a spiral effect,” Mbulo said. “When the mining industry collapses, some businesses shall collapse. No contractor will have any business with the mining industry. Those supplying electricity in the mining industry will not supply it any more.

Even banks will be affected, because most banks in this country have lent out money which is not secured and therefore people who have been sent into the streets will not be able to pay back loans. So, it’s a chain. We need a level headed leader who can offer solutions, not who act as a prophet of doom.”

Mbulo said it is no wonder Chiluba dubiously privatised the mines at the expense of the workers and the country.

“You cannot just wake up today and say, the crisis was expected. If he knew, why didn’t comment earlier to make sure that it is avoided in Zambia,” Mbulo said. “We require true statesmen who can advise before water reaches the knees. We haven’t forgotten that the same Chiluba privatised Luanshya [Mine] to the Binani Group of Companies and we haven’t forgotten the kind of suffering workers went through.

We all remember that mines were privatised under Chiluba’s regime and up to now we don’t understand the circumstances under which they were privatised. Now we are convinced why workers were not cared for.

We are also convinced why these mine owners were given eight years of not paying anything into the state treasury; they were also given concessions going beyond 20 years of paying nothing, while workers are paying hefty taxes.”

And Mbulo accused the mining companies of being selfish, saying when copper prices were high they made huge profits which could now be used to cushion the crisis.

“These mines spent so many years without paying any tax. Mine owners spent eight years from 2000 up to now without paying any tax and were making hefty profits, why don’t they also give us a window of comfort? …It’s not something that requires a complex decision, it’s a matter of dialogue,” said Mbulo.

On Sunday before departure for South Africa for his medical review, Chiluba said job losses in the country were expected because of the global economic crisis which started with the credit crunch in the United States.

Labels: CHILUBA, MINING

posted by MrK @ 5:04 AM