2,000 FQM workers reject 25% pay rise
By Misheck Wangwe in Kitwe
Sat 28 Dec. 2013, 14:00 CAT
OVER 2,000 unionised workers at First Quantum Mining have rejected the 25 per cent salary increment offered to them covering a period of three years, saying it is clear manipulation.
But FQM management says it attaches great importance to the welfare of employees and was making serious attempts to resolve the matter as quickly as possible. The government last week declined to process the 2014 collective agreement signed between First Quantum Mining and the National Union of Miners and Allied Workers.
The agreement, which the Mineworkers Union of Zambia had refused to sign, entailed that NUMAW members were to get a 25 per cent salary increment covering a period of three years.
The workers were to get a 10 percent in 2014, eight percent in 2015 and seven percent in 2016.
In a collective statement signed by employees in various departments of FQM, the miners stated that they were happy that the government through the labour commissioner Cecilia Kamanga had refused to acknowledge and process the new agreement.
Miners from both MUZ and NUMAW said they want FQM management to withdraw the three-year collective agreement deal and revert to one-year deals that had been signed over the years.
"We cannot tie ourselves to a three-year deal with mediocre and mockery increments. From our understanding, this deal means that if FQM makes good profits in the next three years, we will not be part of it and besides, even the increments are not substantial; 10 per cent for 2014, eight per cent for 2015 and seven per cent in 2016. These are not figures that we can accept knowing too well that our company will be making profits in the coming years," the petition read in part.
They implored the government to closely monitor the manoeuvres being made by some stakeholders, saying if the document was processed and allowed to become binding, there would only be a seven per cent salary increment at FQM in 2016 which was the year of the general elections.
But according to an approved memorandum circulated by Ernesto Levi Fetalvero from the Resource Optimisation Team addressed to employees on Monday, FQM management indicated that it remained committed to ensuring that the workers were not adversely affected by the issue that was before the labour commissioner.
"In a bid to try and resolve this matter, unions met the labour commissioner on Friday December 20 in Lusaka. Despite discussions at the meeting to date, this matter remains unresolved and management understands that unions were to have discussions to try and resolve their differing views. Employees would be aware that the current collective agreement expires on December 31, 2013. Management remains committed to ensuring that the workers are not affected by these developments," FQM management stated in a memo.
When contacted, MUZ general secretary Joseph Chewe said the union was in receipt of various correspondences and concerns from all stakeholders over the collective agreement which they refused to sign at FQM and a comprehensive statement would be issued at an appropriate time.
Labels: FQM, NUMAW
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Govt declines to process FQM, NUMAW deal
By Darious Kapembwa
Wed 18 Dec. 2013, 14:00 CAT
THE government has declined to process the 2014 collective agreement signed between First Quantum Mining and the National Union of Miners and Allied Workers.
The agreement in question which rival union, the Mineworkers Union of Zambia, refused to sign entailed that NUMAW members were to get a 25 per cent salary increment covering a period of three years. The workers were to get 10 per cent in 2014, eight per cent in 2015 and seven per cent in 2016 which also meant that there was not going to be negotiations for better salaries and improved conditions of service.
NUMAW president James Chansa signed on behalf of his union despite resistance from some of his members while MUZ refused to sign, saying it was a betrayal to the general membership.
According to a letter dated December 13, signed by labour commissioner Cecilia Mulindeti Kamanga, to the two unions and FQMO obtained by The Post, the ministry was unable to process the collective agreement because it was not supported by consensus from representatives of all the workers concerned whose conditions of service were under review.
"The office of the undersigned is in receipt of the 2014 Collective Agreement signed between FQMO and NUMAW for approval by the Minister of Labour and Social Security in accordance with section 70 and 71 of the Industrial and Labour Relations Act Cap 269," read the letter in part.
"In addition, communication has been received from MUZ indicating that they are not party to the 2014 Collective Agreement as also confirmed by the minutes of the signing ceremony held on 3rd December 2013...In this regard, I wish to refer the Collective Agreement back to the Joint Industrial Council for the employee representatives to have a collective position on the offer from management," read the letter.
Reacting to the development, MUZ general secretary Joseph Chewe said it was pleasing that the government was not compromised when it came to defending workers' rights.
"We thank the government, unlike the previous government where some ministers and some union leaders were compromised by multilateral corporations. But we wish to call upon law enforcement agencies to extend the fight against corruption to unions, so that people live within their means and represent our members without being compromised," said Chewe.
Chansa was unavailable for comment by press time.
Labels: FQM, JAMES CHANSA, LABOUR, NUMAW, UNIONS
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Munyenyembe was a rare voice of reason - Simuusa
By Mwila Chansa-Ntambi in Mufulira
Mon 13 Feb. 2012, 12:59 CAT
A MULTITUDE of people from all sectors of society on Saturday converged in Mufulira to pay their last respects to late Mineworkers Union of Zambia president Oswell Munyenyembe who died in a road accident last Tuesday.
And National Union of Miners and Allied Workers (NUMAW) president Mundia Sikufele has urged the labour movement in Zambia to use Munyenyembe's death to reflect and re-organise itself.
Meanwhile, mines minister Wylbur Simuusa says the government regarded the late Munyenyembe as a rare breed of a brave and courageous trade unionist.
Traffic moved slowly on the Kitwe-Chingola and Mufulira-Sabina roads as hundreds of mourners drove to the border town of Mufulira to pay their last respects to Munyenyembe whose body was interred at Chatulinga Cemetery.
Notable among those that attended the funeral were Simuusa, his deputy Richard Musukwa, works and supply deputy minister Mwenya Musenge, Copperbelt minister Davies Mwila, deputy secretary to the Cabinet in charge of administration Teddy Mulonga, ZCTU president Leonard Hikaumba, Federation of Free Trade Unions of Zambia president Joyce Nonde-Simukoko, politicians from diverse political parties, miners and ordinary citizens.
And delivering the funeral sermon, Rev Chizason Chunda, of the Church of Central Africa Presbyterian where Munyenyembe congregated, described the late trade unionist as an exceptional leader and a role model both to the Church and society at large.
Rev Chunda observed that many people might be asking questions as to why God allowed Munyenyembe to die in a tragic accident but they should remember that there was time for everything and that God's time was the best.
He observed that Munyenyembe used the time that God accorded him on earth properly because he dedicated his entire life to fighting for the betterment of human kind and fighting against injustice.
Rev Chunda added that Munyenyembe was a friend to many as could be evidenced by the multitudes that turned up to pay their last respects to him.
He challenged people to take stock of their lives and gauge whether they were using the time God had given them on earth properly.
Rev Chunda added that it did not matter how long a person lived on earth but that what mattered was how that person utilised the time that God gave them on earth.
And speaking at the burial site, Sikufele asked the Zambian labour movement to be united and seek God's guidance so that He could reveal the meaning of Munyenyembe's death.
"The voice of the labour movement which has seemingly become dim should be stronger and we should use this period to re-organise ourselves and serve the people," said Sikufele.
MUZ general secretary Chishimba Nkole said Munyenyembe's death had left a big gap in the oldest union in the mining industry in Zambia.
Nkole urged mourners to ensure that they continued showing their love for Munyenyembe by looking after his children and widow.
Hikaumba said Munyenyembe's demise was a ‘cruel thief' that had robbed the nation of a gallant and courageous leader.
Hikaumba said even though Munyenyembe was offered to stand as a member of parliament on a named political party's seat during last year's elections, he opted to continue representing workers.
And Simuusa said Munyenyembe was a rare voice of common sense and reason and that his contribution to the labour movement was unmatched.
He also said the PF government wanted to see a united and strong labour movement adding that previously, there were deliberate efforts to fragment and weaken the voice of workers.
Munyenyembe is survived by a wife Charity, six children and one grandchild.
He attended primary education in Muyombe; his secondary education in Malawi before studying architecture at the Zambia Institute of Technology (ZIT) which is now the Copperbelt University.
He began his trade union career at branch level in 1983 and rose through the ranks to become general secretary and eventually president, a position he held until his death last week.
Labels: LABOUR, MUNDIA SIFUKELE, MUZ, NUMAW, OSWELL MUNYENYEMBE, WYLBUR SIMUUSA
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MUZ, NUMAW accuse govt of backing splinter mine workers union
By Darious Kapembwa and Mwila Chansa in Kitwe
Sun 12 Sep. 2010, 03:59 CAT
MINE Workers Union of Zambia (MUZ) and the National Union of Miners and Allied Workers (NUMAW) have disclosed that a splinter union has been formed in North Western Province with government backing.
During a joint press briefing organized by MUZ and NUMAW at Katilungu House in Kitwe on Friday, a government minister is reportedly chairing meetings for the new union.
According to MUZ president Rayford Mbulu, the new union named Consolidated Miners and Allied Workers Union of Zambia (CMAWUZ) had written to President Banda assuring him of their support during the 2011 tripartite elections if the government assisted it with K2.9 billion for operational purposes.
Mbulu said MUZ was not a ‘sweetheart’ union and would continue fighting for the needs of miners and workers at large.
He urged fellow miners to reject people that were trying to sow seeds of
discontent in the mining industry, adding that there was no way a genuine union would form an alliance with the government upon formation.
Mbulu said the two main mining unions – MUZ and NUMAW – had successfully fought against outsourcing at Konkola Copper Mines and that there was need for practical solidarity amongst the labour movement in the country.
NUMAW president Mundia Sikufele said the new union has had three meetings with a senior minister in government where a lot of money had been promised to them.
And according to a confidential budget proposal dated April 26, 2010 and
addressed to President Banda, CMAWUZ interim president Thomas Mpashi expressed delight being accorded an opportunity to meet with the President despite his busy schedule.
“Sir, we are a new union to be registered in the mining and allied industries. Our objective, among others, is to work with your government in fostering national development unlike other unions who fail to address issues and only condemn the government of the day,” the letter read in part.
“Your Excellency, we are a union to stand in the gap to supplement your noble services to the community. We see the existing unions having assets but nothing benefits the community. Sir, if resources permit, we intend to construct schools, clinics and even colleges to benefit the general membership and the community as you may be aware there is no union in Zambia which has initiated such projects yet they have the resources and the power to even borrow.”
Labels: MUZ, NUMAW, RAYFORD MBULU, TRADE UNIONS
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KCM’s defence of outsourcing is lame excuse - NUMAW
By Mwila Chansa in Kitwe
Sun 08 Aug. 2010, 04:00 CAT
NATIONAL Union of Miners and Allied Workers (NUMAW) national secretary Goodwell Kaluba has described KCM’s defence over its decision to outsource some of its units as a lame excuse.
And
Kaluba has blamed the government over what is transpiring at Konkola Copper Mines (KCM) in terms of outsourcing, observing that the mining giant cannot make such a decision without the blessings of the government.
Reacting to KCM spokesperson Rahul Kharkar’s explanation that the objectives of sub-contracting (outsourcing) were to increase efficiency, reduce costs and improve recoveries at the plant and that it was not designed to result into job losses, Kaluba said the issues of outsourcing at KCM had not began today.
“Those are just lame excuses because these issues have not started today. Even during negotiations in the other year and last year, KCM has always been showing negativity in terms of production. They have always claimed low production and low profits,” he said.
He wondered how KCM expected to run their plant efficiently when they had not paid any attention to rehabilitating their dilapidated equipment or buying new equipment altogether.
Kaluba observed that KCM’s failure to maintain its equipment was what was leading them to outsource.
“Much as they have done a lot at KDMP Konkola Deep Mining Project, there are a lot of other departments that they have been failing to maintain. An example is the concentrator and the open pit,” he said.
Kaluba said as long as KCM outsourced certain departments, the unions would be weakened because workers that would start working for contractors would do so on contract basis and that some of them would end up losing jobs since it would be the prerogative of contractors to take the workers on or not.
He urged KCM to make a decision if they had failed to run the mine, adding that there were a lot of people that could afford to run it.
And Kaluba said the government was also to blame for what was happening at KCM.
“For investors to have the audacity to outsource, they know that they have a grip from somewhere. Government is also a shareholder in KCM and if they are meeting and making these decisions, obviously they are aware. KCM can’t make such a decision minus government,” said Kaluba.
He said the government was not looking into the welfare of its own people and that they should realise that when people become contract workers, even their the government tax base would be affected.
“People who will be working for contractors will be getting mediocre salaries mostly below the tax threshold.”
Labels: GOODWELL KALUBA, KCM, LABOUR, NUMAW, RAHUL KHARKAR
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COMMENT - Hiring foreign workers completely undermines the government's excuse for not taxing the mines or receiving dividends because 'they will bring jobs'.
Zambia government failed to address the concerns of their members - Mining workers unions
Tuesday, 04 May 2010
Mining workers unions in Zambia said that the government has failed to address the concerns of their members and have threatened not to support the ruling Movement for Multiparty Democracy during next year’s general elections.
National Union of Miners and Allied Workers and the Mine Workers Union of Zambia charged that the government has failed to represent its nationals in among other concerns the increased recruitment of expatriate personnel in mining companies at the expense of local skilled labour.
Mr Goodwell Kaluba secretary of National Union of Miners and Allied Workers said that the government has totally failed to address miners’ concerns particularly over the increasing number of expatriate labour being brought into the industry which was taking away the jobs meant for local people.
Mr Kaluba complained that the miners’ concerns had fallen on deaf ears despite the many meetings held with the government on several issues affecting them. Issues such as engagement of expatriates at the expense of Zambians had been a major concern to the union for a long time now.
He said that we as a union are very disappointed with government because they have totally failed to address the concerns of our members. There are a lot of things happening in the mining industry. Just recently in Lumwana, there was an overhaul and people came in from South Africa to work on that.
Mr Kaluba said that mining firms like Konkola Copper Mines had an influx of Indians working on jobs that could be done by the locals. Lubricators are you telling me this country cannot afford to produce a lubricator? Some of those people have even come to learn these jobs from Zambians. During negotiations when we raise these issues, companies give a lot of excuses but how does government give these people permits when they know that we have a lot of qualified Zambians who are just roaming the streets?
He said that we know that these investors have bought the mining companies but the rules of the land must be respected. Zambians should be a priority when they are employing. Of course there are certain jobs that need expatriates but we can’t have foreigners working as artisans. It is very disappointing. We don’t know where we are going with this government.
He implored the government to change its attitude, saying unions looked forward to seeing more Zambians in employment. And the alliance between the ruling Movement for Multiparty Democracy and the ex miners, intended to address their concerns would not succeed because it involved former president Mr Frederick Chiluba who had failed the miners when he was president.
He claimed that some miners that were laid off in the Chiluba era died without ever getting their monies from the so called trust fund, describing as a joke the former president’s promises to help the ex miners over their plight.
Mr Kaluba said that if Chiluba turns around today and says that he will help the ex miners, that is just a joke. It is just politicking. I would like to tell those ex-miners that it won’t go anywhere.
Mr Oswell Munyenyembe GS of Mine Workers Union of Zambia said that he did not see how miners would support the MMD in 2011 if the government continued ignoring their plight. He also complained that the engagement of expatriates at the expense of Zambians was one such concern that had not been addressed.
He claimed that several foreign mining companies including Konkola Copper Mines, Mopani Copper Mines and Luanshya Copper mines, among others, were importing labour from India, Indonesia and other parts of the world to come into Zambia and do jobs that the locals were trained to do.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
Labels: LABOUR, MINERS, NUMAW, TRADE UNIONS
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‘Luanshya Copper Mines has produced copper valued at $12m since inception’
By Zumani Katasefa in Luanshya
Tue 13 Apr. 2010, 04:50 CAT
CHINA Non-Ferrous Mining Cooperation (CNMC) Luanshya Copper Mines (PLC) has produced about 12000 tonnes of copper concentrates valued at approximately US $12 million since its inception.
And chairperson of the parliamentary committee on government assurances Chishimba Kambwili who is also Roan member of parliament has given CNMC Luanshya Copper Mines (PLC) a 30-day ultimatum in which to
re-employ all miners who belonged to former owners of the mine.
CNMC Luanshya Copper Mines deputy chief executive director Robert Kamanga told members of the parliamentary committee on Saturday that the company was producing about 2500 tonnes of copper concentrates per month.
Kamanga said at the moment the company was not selling the concentrates but was just stock pilling the produce which contains copper and cobalt.
And CNMC Luanshya Copper Mines head of human relations Loti Chola said the company had employed 1446 ex-Luanshya Company Mine miners, and 661 from service contractors.
“We have also sourced 341 employees from the open market,” he said.
Chola also disclosed that the lowest paid surface workers was getting about K1.2 million while the lowest paid underground worker was getting K1.4 million.
And Kambwili gave management at the Chinese owned mine a 30-day ultimatum in which to employee all the miners who were formerly employed by LCM.
“Mines minister (Maxwell Mwale) had said that all the miners who were employed by LCM would be reemployed by the new investor of this mine except those who are over aged, so as a committee on government assurances we are making a follow up to that. And we are giving you 30-days ultimatum in which to employee these people,” he said.
Kambwili wondered why the new owners of Luanshya mine had not employed the remaining 32 former Luanshya miners.
He wondered why the company had decided to go and source for employees on the open market leaving the workers who previously served at the mine even in view of the government assurance that all former workers would be re-employed.
Kambwili also said that he had received complaints from workers engaged by a Chinese contracting firm, Exploration Mining, contracted by CNMC Luanshya Copper Mines that they were being paid between K180,000 and K350,000 per month.
“So far you (CNMC Luanshya Copper Mines PLC) have given us hope for employing most of the people here, but you should talk to your contractors and advise them on how to pay workers. Some people may not know that Exploration Mine is different from you, they will just think it is a Chinese company and that will paint a bad image about you,” he said.
He said Exploration Mine was also asking workers to provide their own protecting clothing before they could be engaged.
And Mkushi South Constituency member of parliament Sydney Chisanga urged Zambian managers at the mining company not to mislead the Chinese investors.
“Our Zambian technocrats have let us down, you need to advise our investors correctly,” he said.
Meanwhile, National Union of Miners and Allied Workers (NUMAW) Mpatamato branch chairperson Adams Zulu complained of the communication barrier between the Chinese and Zambian workers.
Zulu said it was difficult to communicate with the Chinese as most of the time they were using Chinese.
He disclosed that most of the correspondences at the mine were done in Chinese.
Zulu also said that the Chinese were also not recognising the gazzetted Zambian holidays adding that they had even substituted the Zambians holidays with the Chinese holidays.
Labels: ADAMS ZULU, CHINESE, CHISHIMBA KAMBWILI, LOTI CHOLA, LUANSHYA COPPER MINES, NUMAW
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Lumwana signs pact with MUZ, NUMAW
By David Chongo in Solwezi
Tue 02 Feb. 2010, 04:01 CAT
LUMWANA Mining Company (LMC) has signed an agreement with the Mine Workers Union of Zambia (MUZ) together with the National Union of Mine Workers and Allied Workers (NUMAW) to have, among others terms, its unionised workers put on permanent and pensionable employment contracts.
According to some of the details in the Collective Bargaining Agreement (CBA) agreed at Lumwana and obtained by The Post in Solwezi, the employees, who were previously on operational fixed term contracts, would now be put on permanent and pensionable employment contracts effective January 1, 2010.
Furthermore, they will be entitled to a fixed increase of K300, 000 for the lowest paid employee with a basic pay of K1, 495, 635 and K600, 000 for the highest paid unionised worker earning K3, 985, 540 representing a salary raise of between 20.1 per cent and 15.1 per cent respectively.
In the new agreement, the workers will also receive K75, 000 as education allowance for each child or registered dependent up to a limit of four with the company providing transport for the children to schools along Mwinilunga Road until government builds one at Lumwana.
Additionally, the workers have also been accorded optional medical schemes with Lumwana endeavouring to ensure the selected medical scheme providers deliver beneficial services to the miners.
Lumwana has also undertaken to initiate, together with the unions, a social security pension scheme before the end of the first quarter of this year.
“The parties agree that at individual's choice, employees will be eligible to contribute 6 per cent of basic pay and the company will additionally contribute 7.5 per cent of the employee's basic pay towards a social security pension scheme,” it stated.
While the meeting agreed to a 35 per cent housing allowance of basic pay for employees in rented or mortgaged company accommodation and 13 per cent for those still in temporary boarding quarters provided by Lumwana, they also agreed to reduce the interest rate on mortgage from 12.5 to 5 per cent with a long term pledge to provide accommodation for its workers. For those employees in company houses, the 35 per cent allowance would service their mortgages.
The miners have also been signed to funeral grants ranging from K3 million for employees coupled with services of a professional funeral parlour, K2 million for spouses and K1.2 million for children or dependents.
And speaking in an interview, Lumwana managing director, Adam Wright said the company was satisfied with the manner and terms of the new agreement for the financial year 2010.
He said as a company, they were pleased to have agreed the CBA with the MUZ and NUMAW adding that it (CBA) puts LMC in a competitive position in the labour market with a focus on the introduction of permanent employment contracts for its workers and that the agreement was consistent with the projected mine life of more than 37 years.
Wright said the agreement was a fair settlement for Lumwana and provides a positive position for the company plans for 2010.
And welcoming the 2010 agreement, MUZ general secretary, Oswell Munyenyembe has said while the improved terms may have partly been a reward for the workers hardwork after Lumwana posted a 23 per cent increase in copper production in the last quarter of 2009, as a good employer who has invested a lot in equipment, the mining company also needed to invest much in the workers’ welfare.
He said the general membership of the unions at Lumwana was satisfied with the first CBA between the parties considering that Lumwana was a Greenfield.
Labels: LUMWANA MINING COMPANY, MUZ, NUMAW, SALARIES
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Unions reject KCM’s 3% salary increment
By Mutuna Chanda in Kitwe
Fri 11 Dec. 2009, 04:01 CAT
MINEWORKERS Union of Zambia (MUZ) and National Union of Miners and Allied Workers (NUMAW) have rejected Konkola Copper Mines’ three per cent salary increment offer. The two unions have declared a dispute in the ongoing negotiations for improved conditions of service with KCM.
Briefing the press yesterday, MUZ president Rayford Mbulu expressed disappointment that the mining giant could offer such an infinitesimal increment when copper prices had risen to US $7,150 per tonne on the world market.
However, he appealed to mine workers to remain calm and allow the unions and KCM management to exhaust all the channels of the collective bargaining process as provided for by the law.
“From the manner we are proceeding; our negotiations with KCM are not giving us inspiration,” Mbulu said. “There’s extreme hopelessness. We are at three per cent offered by KCM and the unions are at 25 per cent. There is a difference of 22 per cent. Our position is that of extreme worry...in four meetings we are at three per cent and the company has said that’s the final position.”
He said he expected any normal company such as KCM which was recovering from recent industrial unrest relating to salary increments and concerns over other conditions of work to have made a better offer.
“We are not convinced that KCM can offer three per cent when copper prices have soared to US $7,150,” Mbulu said.
He said during the time of rock bottom copper prices when the global economic downturn caught the Zambian mining industry off its guard, the two unions had proposed to KCM a number of measures in which to enhance production and cut costs but that these were not heeded.
Mbulu said the unions had asked KCM to repair infrastructure and buy new equipment to improve production processes and also cut on the number of expatriate workers.
He said the 165 expatriates at KCM earning colossal sums of money were not adding any value to the company.
Mbulu said during the ZCCM days when the mining industry employed a total of 65,000 workers, there were less than 100 expatriates and wondered what the justification was for KCM, which was a fraction of the mining conglomerate, to have 165 foreign workers.
He said there was no need to have expatriates mainly of Asian origin to perform spokesperson, human resource, finance and metallurgical functions because there were many Zambians trained by local institutions who could work in those positions.
Mbulu criticised the government for letting down Zambians by allowing expatriates in positions that locals could occupy.
He questioned the criteria that the Ministry of Home Affairs used in issuing work permits to such expatriates.
Mbulu demanded a stop to the trend of employing expatriates when locals could perform the functions.
Labels: KCM, MUZ, NUMAW, RAYFORD MBULU, SALARIES, TRADE UNIONS
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‘Mining concessions are enough to keep investors’
Written by Kabanda Chulu and Fridah Zinyama
MINING concessions are enough to make investors stay in the country, National Union of Miners and Allied Workers (NUMAW) president Mundia Sikufele has said, further challenging finance minister Situmbeko Musokotwane to stop linking windfall taxes to the non-attraction of investments.
And Bank of Zambia deputy governor Denny Kalyalya has said the 2010 budget targets are realistic and aimed at bringing back the Zambian economy on the recovery path.
Meanwhile, Zambia Institute of Chartered Accountants (ZICA) president Chintu Mulendema has said the 2010 budget has tried to capture most of the issues which are affecting the Zambian economy.
In his 2010 budget presentation last Friday, Dr Musokotwane expressed concern over critics who he said did not seem to appreciate the importance of failing to secure mining jobs and were advocating laws that might scare-away investors.
But Sikufele said government had again failed the people of Zambia for not putting up measures that would have allowed a huge percentage of mining profits to remain in the country.
“Having listened to the budget, as miners we are left with no option since we feel being treated like Cinderella’s. Currently the mining sector is booming and we expect to get something and it is wrong to link the windfall tax to non-attraction of investments since this tax only comes into play when there is unprecedented boom whereby the mines make super profits,” Sikufele said.
“So to whose interest is Dr Musokotwane and his team discarding windfall taxes and do they think Zambia is for charity and why should Zambia perpetually beg when we can do something about the various challenges we face?”
He said Botswana had reached medium income status because the government had put in place measures to ensure that 65 per cent of mineral wealth was retained in the country.
“Re-introducing windfall tax will not scare away investors since they have concessions that can make then stay and operate comfortably,” said Sikufele.
“Dr Musokotwane should not pretend that things are alright especially that mines were given chance when copper prices dropped to below US $ 3,000 per metric tonne but now it is over US $ 6,000 per metric tonne and we still want to give the mines a chance so at what level are we going to benefit as Zambians.”
However, Dr Musokotwane argued that the beginning of 2009 was a difficult environment but government managed to perform well and that the revised 4.3 per cent growth rate was achievable.
“Had it not been for bold decisions by government, the mining industry and the whole economy would have been in ruins today and it is against this background that changes were made to the mining tax regime,” said Dr Musokotwane.
Last Friday, Dr Musokotwane unveiled a K16.71 trillion budget for next year but ignored the calls from many Zambians to bring back the mining windfall tax, claiming that the taxes would scare away investors.
And former finance minister Ng’andu Magande said the budget would only give hope to Zambians when there was a serious implementation of projects in the sectors that required attention in the short to medium term.
“Generally it is looking good and if money is spent and projects implemented then there can be hope to uplift Zambians out of poverty,” he said.
When asked if it was wrong for Dr Musokotwane to leave out the mining sector in his budget speech, Magande said the speech did not contain everything.
“Speech doesn’t include everything but we have to read through the yellow book to see what will be gotten from the mines and I hope they have not asked for incentives because they got everything they wanted in the 2009 budget,” said Magande.
And Dr Kalyalya said the targets set out in the 2010 budget were realistic and tenable.
“In view of the global crisis, the trajectory set out in the budget is very clear especially if agriculture continues to perform better, the targets are realistic and they look tenable because we can exceed five per cent growth rate and eight percent inflation rate,” said Dr Kalyalya.
“We are emerging from a crisis and this budget is an attempt to bring us back to where we have been previously and if all those projects in agriculture, manufacturing and tourism take off, then Zambia shall soon be on the recovery path.”
And during a post budget dinner discussion held on Friday night, Mulendema acknowledged the challenges Dr Musokotwane could have faced in coming up with a national budget to address most of the issues the economy was facing due to effects of the global financial crisis.
“...2009 was a very difficult year for government as Zambia was experiencing the effects of the Global financial crisis,” he said. “Most sectors of the economy like the mining sector suffered job losses, trade declined and the tourism sector witnessed a reduction in the number of tourists coming to Zambia,” he said.
Mulendema said it was therefore government’s objective to try and rectify some of the problems which had been created by the recession in the national budget. And Dr Musokotwane said although the economic environment had been challenging, the country was on course to record the targeted growth rate of 4.3 per cent.
“I am still optimistic that Zambia could still attain the five per cent growth rate if things continue going at the rate at which they are going,” he said.
Dr Musokotwane said 2009 had been a difficult year for government as they experienced a budget deficit of about three per cent.
“We had compressed revenue as some of the estimates that we had made failed to come through due to the economic crisis,” he said.
Dr Musokotwane said balance of payment (BoP) from exports had gone down and imports were also affected due to the depreciation of the kwacha.
“Imports had gone down by 34 per cent,” he said. “Because our budget is also dependent on tax revenues, we failed to capture most of it because of a reduction in customs duty and value added tax.”
He explained that in order for government to be able to function well in the face of reduced revenues, they had to increase domestic borrowing.
“The country’s indebtedness is going to go up but this cannot be helped if we are to find funds to implement most of our developmental programs,” said Dr Musokotwane.
“Other countries are equally experiencing indebtedness, so we cannot exactly avoid that particular route.”
And giving a socio-economic analysis of the budget, Economics Association of Zambia (EAZ) member Lloyd Sichilongo said Zambia’s growth rate was expected to weaken due to the effects of the global financial crisis.
“This is because there has been a reduction in revenue from the mining sector, the largest contributor to the country’s economy,” said Sichilongo.
Labels: BUDGET, DENNY KALYALYA, MINING, MUNDIA SIFUKELE, NUMAW, TAXATION, WINDFALL TAX
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Mines unions want mineral royalties hiked
Tuesday, October 13, 2009, 18:03
The National Union of Miners and Allied Workers (NUMAW) has supported calls by the International Monetary Fund (IMF) for government to increase the mineral royalties and corporate taxes in order to increase its revenue.
Commenting on IMF’s calls that government should increased mineral royalties and corporate taxes to enhance the country’s revenue, NUMAW president Mundia Sikufele said the current mineral taxes collections were not sufficient enough for country to benefit from.
Mr. Sikufele told ZANIS in an interview in Lusaka today that there was need for the government to quickly revise taxes in order for the people in the mining sector to have an opportunity to benefit from the country’s mineral resources.
He noted that since most of Zambian citizens were in the informal sector, there was need to increase mineral royalties for government to have more revenue.
He explained that by increasing the mineral royalties, people in the mining sector will also be given a chance to contribute to the economic growth of the country through paying other taxes.
Meanwhile the Private Sector Development Association (PSDA) has advised government to treat mineral taxes like any other business taxes in the country.
PSDA Chairperson, Yusuf Dodia, said in a separate interview that government should consider keeping the mine taxes constant at all times if it is to expand its revenue collection base.
Mr. Dodia said there no need for government to change the taxes whenever copper prices fluctuate on the international market.
He said government should ensure that taxes were maintained in a concession manner and not to make them exorbitant.
He pointed out that the reason why government has failed to make meaningful gains from the mine taxes was due to lack of having permanent corporate mineral taxes for the mining sector.
Mr. Dodia further challenged investors in the mining sector to take advantage of rising copper prices on the international market and make significant contributions to the development of the sector and the country as a whole.
ZANIS
Labels: IMF, MINING, MUNDIA SIFUKELE, NUMAW, PSDA, WINDFALL TAX, YUSUF DODIA
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Ex-miners accuse govt of compromising MUZ
Written by Zumani Katasefa in Kitwe
FORMER Luanshya miners have accused the government of compromising the Mine Workers Union of Zambia (MUZ) and National Union of Miners and Allied Workers (NUMAW) local officials over the sale of the Luanshya mine.
But MUZ Luanshya Branch chairperson Stanslous Mwimbe yesterday declared that the union members cannot be bought.
The miners who stormed The Post newspaper officers in Kitwe, led by Ben Nonde and Roan member of parliament Chishimba Kambwili, alleged that mines minister Maxwell Mwale recently paid the union officials K1 million each when he addressed them in Luanshya.
“The money was given to the union leaders so that they could not allow miners go ahead with the planned peaceful demonstrations regarding the opening of the mine. We are very disappointed with MUZ leaders. Instead of obtaining a police permit, they decided to go and hold a meeting with mines minister,” alleged the workers.
Kambwili said a few days ago when Mwale addressed the union leaders, members of the press, himself and other government officials were asked to walk out of the meeting so that the union leaders could remain with him (Mwale).
He said some union officials who were part of the meeting and received the K1 million confirmed to him that Mwale had allegedly paid them for safeguarding property at the mine.
Kambwili said it was not the duty of union officials alone to safeguard property at the mine because since its closure, Luanshya residents and ordinary miners had been on alert to secure the property.
He said when the raise boiler machine was taken from the mine, it was not the union officials who raised alarm but ordinary mine workers who did so.
“So paying the miners K1 million each for safeguarding property is tantamount to corruption. He is paying them so that they can support the Chinese investor government wants to take over the Luanshya mine,” alleged Kambwili.
And the miners, in a press statement, accused the union leaders of speaking for the government recently.
“During our usual meetings at 28 Shaft, we requested them to obtain a police permit to enable us carry out a peaceful demonstration, to our surprise they decided to have an audience with the minister of mines Hon. Maxwell Mwale, MP,” they stated.
The former miners said they would accept any credible investor who would be picked competitively and continue running the mine hospital and supporting sports and schools.
“We will accept an investor who will deal with local suppliers and contractors like Prosec and Mpelembe drilling including small and medium entrepreneurs; respect and treat workers with dignity and never employ casuals to work underground, and give them a 10-year initial plan and guarantee the development of the Mulyashi project,” stated the miners. “We do not want second hand information, we want the minister himself to address us, failure to which there will be endless trouble in Luanshya as it was during the Binani time and the police will not stop us.”
And Mwimbe explained that the K1 million paid to the 13 union officials was a substance allowance for safeguarding property at the mine.
He said the money was given to them last week by permanent secretary in the Ministry of Mines Dr Godwin Beene after a meeting with Mwale.
“Six meetings were held with miners in both Roan and Mpatamato, at all the two meetings, the workers accepted that a team of 24 mine officials be part of the team that was safeguarding the property at the mine,” he said.
Mwimbe said a contract was then signed with LCM that the company would be meeting allowances for eight workers while 13 others would have their allowances covered by ZCCM-IH.
He alleged that Kambwili was not just happy with the union leaders because on a number of occasions, the union had opposed his ideas regarding the sale of the mine.
Mwimbe said Kambwili had not been consisted with his stance regarding the sale of Luanshya Copper Mines.
“Earlier, he invited the PUKU, and we hear PUKU bid for the mine, again a week later he brought a Canadian investor by the name of Lion, he later changed his mind and asked miners to demonstrate and ask government to give the mine back to LCM,” Mwimbe said.
He said Kambwili was not only an ordinary member of parliament but he was also a businessman with interests.
Mwimbe complained that Kambwili had also instructed people to beat up union officials, accusing them of being corrupt, and said the union would report the matter to police.
Labels: CORRUPTION, MAXWELL MWALE, MUZ, NUMAW, THE POST
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Miners warn of resistance to close LCM
December 23, 2008
The Mine Workers Union of Zambia (MWUZ)and National Union of Miners and Allied Workers Union (NUMIAWU) have warned that any attempts to switch off equipment or attempts to close Luanshya Copper Mines operations would be met with maximum resistance.
The two unions have also urged its members to closely monitor operations and ensure that no materials or scrap metal leaves the premises of the company.
Addressing a joint press conference at Katilungu house today, MUZ President, Rayford Mbulu, appealed to government and the technical committee to ensure and guarantee continued Luanshya Copper Mines (LCM) operations, employment and incomes, as this would lessen anxiety and fears by members so that peace prevailed in Luanshya.
Mr Mbulu also said the two unions have rejected the putting mine assets on ”care and maintenance”.
He suggested that the shutdown schedule as outlined on 19th December be revisited and advised that no letters should be issued to employees by LCM management util things are straight.
Mr Mbulu, who was flanked by NUMAWU president, Mundia Sikufele, appealed to all stakeholders to engage in a fast tracked process to create a vehicle for continued LCM operations.
He also reminded LCM management to honour in full their obligations to employees for rendered services by ensuring that the terminations were accompanied by terminal benefits as outlined in the collective agreement.
The MUZ president requested mine owners and shareholders, whose corporate and global interests outweigh the interests of the country, to offload their shares to government and hand back the mine assets to ZCCM-IH to protect domestic economy through continued operations to safeguard mine assets, job losses and asset stripping.
Labels: DEMONSTRATION, LCM, MINERS, MUZ, NUMAW, RAYFORD MBULU, RIOTS
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Mine job losses will worsen tension – Sata
Written by Lambwe Kachali
Thursday, November 27, 2008 11:28:08 AM
PATRIOTIC Front (PF) president Michael Sata yesterday said the retrenchment of mine workers on the Copperbelt will worsen the tension in the country. And Sata said some problems that Zambia is facing in the mining industry are a result of former president Frederick Chiluba's corruption.
Meanwhile, Zambia Congress of Trade Unions (ZCTU) acting secretary general Ian Mkandawire said the laying off of workers at Bwana Mkubwa Mine Limited in Ndola should send a strong message to the government to hasten its programme of employment creation.
Commenting on the retrenchment of 286 workers by Bwana Mkubwa Mine Limited and the 26 workers at Chambishi Metals who have been sent on forced leave, Sata said President Rupiah Banda would never stop irritating Zambians.
Sata said Zambians' tempers had not yet settled following the disputed October 30 election and that it was unacceptable for them to be angered further with the miners' retrenchment.
Sata claimed that President Banda was aware of what was obtaining in the mining industry and it was his responsibility to prevent them from laying off the already under-paid workers. He said President Banda was aware that most mines would lay off workers, and instead of finding a lasting solution, he preferred to remain mute on the matter.
"When I met [late president] Levy Mwanawasa, he showed me correspondence between the mines and government, which indicated that unless government revise the taxation and other production conditions, it was going to be difficult for the mines to maintain their level of production and level of the people who are employed. Now that was given to the late president in writing and he [late president Mwanawasa] replied in writing, in which he gave certain conditions and that they were still negotiating," Sata said.
He said President Banda's beginning was disastrous and urged him to show leadership on important national issues.
Sata said it was sad that despite the high unemployment levels in the country, workers were still being retrenched and therefore made vulnerable.
"With the retrenchment on the Copperbelt, the tension is going to be higher; this is definitely going to heighten the tension. It will worsen the tension, increase crime, increase uncertainty, and make our economy very bleak because more people will be in the streets, jobless. And Rupiah Banda, I am sure he has now over-enjoyed his honeymoon. He should get out of that State House and work so that we get somewhere," he said.
Sata suggested that President Banda should scrap the National Constitutional Conference (NCC) so that the country could save the K400 billion allocated to the institution.
He said the K400 billion could be channeled to other sectors of the economy, which were on the verge of collapsing.
"Even Mr. [Leonard] Hikaumba, he is vice-chairman of NCC, is getting K18 million per month, a former mere civil servant, how can he speak for the miners? Majority of MPs with 22 from PF are in NCC, swimming in hefty money from NCC. How can they speak for the people?" Sata asked.
"My advice to government is to scrap the NCC for the time being and save K400 billion, because NCC won't produce the Constitution tomorrow. And since there is so much money involved, it can go up to 2020, because the people who are there would like by the time they come out they are billionaires. So we have to cut on unnecessary expenditure.
"The second unnecessary expenditure is to cut the number of government officials. Do we need two ministers in one ministry? Do we need two permanent secretaries in one ministry? Those are some of the difficulties we have. The current government is too big and very extravagant. It is extravagant to only 150 people plus few others. But the people on the ground are not being looked after."
Sata said the government should focus on creating more jobs and not to cause misery in the country.
"...Now Rupiah cannot rule trees and animals. In a country where you have the highest unemployment levels in the region, we are supposed to create employment. We are not supposed to create more unemployment because the more unemployed people become, the higher the poverty. We are supposed to reduce poverty not increase it," Sata said.
And Sata said Chiluba was also to blame for the current crisis because of the manner in which he privatised the mines.
He said Chiluba's corrupt tendencies had continued to impact negatively on the lives of majority poor Zambians.
"When these mines were sold in a very corrupt manner supervised by Chiluba, there was no re-investment in them. The agreement among the Republic of Zambia and the people who were coming to buy the mines was that before they are sold, government should first re-invest in them. Unfortunately, Chiluba did not want to respect the agreement and that's why you saw some few mining companies like Anglo-American and RAMCOZ left," he said.
"The whole privatisation process was diluted by Chiluba's corruption. All the companies which he privatised, there wasn't a single company which brought any benefits to the people of Zambia. And there was no way Chiluba was going to query the mining companies for giving slave wages to Zambian workers as well as failure to pay those who were retrenched their terminal benefits..."
Meanwhile, Mkandawire urged the government to establish what was happening in the mining sector. He also appealed to stakeholders to discuss the crisis in the mining industry in order to stabilise the issue of employment.
"Mining companies should not use the global financial crisis to get back at government as a way of expressing their displeasure over the mineral tax regime which government introduced this year. Mineral prices have affected mining operations all over the world but mining companies in other parts of the world have not rushed into shedding off labour as the case in Zambia," said Mkandawire.
Zambia Union of Financial and Allied Workers (ZUFIAW) president Cephas Mukuka said it was clear that Zambians had started feeling the negative impact of privatisation.
Mukuka observed that the shrinking workforce would now force the government to increase Pay as You Earn in order to mitigate revenue loss, which would arise.
"We are not against foreign investors but this development is a litmus paper for Mr Rupiah Banda to be on the alert because the worst is yet to happen," said Mukuka.
Bwana Mkubwa Mine Limited is reported to have retrenched 286 workers, while Chambishi Metals has sent 26 on forced leave, with Kansanshi Mine in Solwezi earmarking about 50 workers for retrenchment.
Recently, 259 Atlas Copco workers at Konkola Copper Mines (KCM) lost their jobs after the latter terminated the former's contract. The current global financial meltdown coupled with low production levels have forced the firms to start thinking of measures to mitigate the impact.
The imminent loss of employment at Atlas Copco came after KCM terminated the Maintenance and Repair Contract (MARC) worth at least US$1.2 million monthly that it held with Atlas Copco.
Among those losing their jobs were artisans in heavy equipment repair, power and auto electricians, boiler makers, stores personnel, site administrators and other administrative staff.
KCM has also started terminating the contracts of employees on fixed-term contracts.
Well placed sources at Mopani also revealed that 879 employees engaged by contractors at two different shafts had been retrenched as of last week.
Luanshya Copper Mines has also laid off eight expatriate workers as a way of saving costs in the wake of the global financial crisis.
National Union of Miners and Allied Workers Union (NUMAW) president Mundia Sikufele said the union had asked the mining companies to get back to the drawing board to see how they could cut on costs without pruning workers.
Mine Suppliers and Contractors Association president Fanwell Banda expressed fear over the threat that the fall in the copper prices would pose to suppliers.
Labels: CEPHAS MUKUKA, FANWELL BANDA, IAN MKANDAWIRE, JOBLOSSES, JOBS, MINING, NUMAW, SATA, ZCTU, ZUFIAW
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Mukuma challenges unions to prove their transparency
By Bright Mukwasa
Saturday March 15, 2008 [03:00]
LABOUR minister Ronald Mukuma has challenged unions to submit their books of accounts to prove their transparency. Speaking at the national union of miners and allied workers (NUMAW) quadrennial conference on Thursday, Mukuma said he had continued to receive complaints of abuse of workers’ contributions by their union executives.
“And if we put in place laws meant to safeguard and regulate workers’ rights, it’s not meant to punish anyone, it’s for the benefit of everyone,” said Mukuma.
He said there was need for unions to exercise transparency and show their membership how the money was being spent.
At the same function Federation of Free Trade Unions of Zambia (FFTUZ) executive secretary Lyson Mando called for the dismissal of labour commissioner Noah Siasimuna for allegedly violating labour laws by interfering in elections of his organisation.
“Under the department of labour, statutory instruments number 23 of 2008 was published on the 20th February 2008. The labour commissioner had effected this statutory instrument on the 18th February 2008 by using it to discontinue FFTUZ elections.
The labour commissioner did not wait for the instrument to be gazetted, neither did he wait for the 30 days to elapse before effecting it,” Mando said.
Labels: FFTUZ, NUMAW, RONALD MUKUMA
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Banda cautions mines unions against tribalism, racism
By Bright Mukwasa and Chiwoyu Sinyangwe
Friday March 14, 2008 [03:00]
VICE-President Rupiah Banda has cautioned unions in the mining sector against tribalism and racism in their operations. And National Union for Miners and Allied Workers (NUMAW) has observed that the inequality among workers doing the same job in most mines on the Copperbelt is a recipe for industrial unrest.
Meanwhile, labour minister Ronald Mukuma has advised mine unions to engage in social dialogue with their employers to resolve their grievances.
Speaking at the official opening of the NUMAW quadrennial conference in Lusaka yesterday, Vice-President Banda said any from of racism and tribalism was archaic and retrogressive.
Vice-President Banda also said the rising copper prices should enable investors to pay their workers accordingly.
He also advised unions in the country to avoid of violence.
“We urge your union, in this regard, to always remember that unionism of violence, retrogressive rhetoric, industrial disharmony and lack of responsibility belongs to the past. Government, therefore, condemns the behaviour of the mine workers at Chambishi Copper Smelter who participated in an illegal work stoppage and the destruction of property,” said Vice-President Banda.
He said the rise in copper prices at the international market should stimulate productivity in the mining sector which in turn should result in motivation for the workforce through better pay and conditions of service.
Vice-President Banda also said the government also expected mining companies to fully comply with the local labour laws.
And NUMAW president Mundia Sikufele said there was need for the government to strengthen its regulatory policy in monitoring the mining owners over the conditions of service they offered.
“Despite the mining industry employing about 75 per cent of the eligible employees on the Copperbelt, we are concerned with the increasing levels of contract labour,” Sikufele said. “It is becoming clearer day by day that some contract workers are receiving remuneration and terms and conditions which sometimes are in violation of our country’s labour laws. Such inequalities in conditions of service among the workers doing the same job are a clear recipe for industrial unproductivity and resentment.
We do understand that our role is to expose abuses workers endure in mine houses but there is need for government to consider strengthening regulatory frameworks in both the Ministry of Mines and Minerals Development and Ministry of Labour and Social Security.”
Sikufele also said NUMAW regretted the violence and the subsequent destruction of property at Chambishi Copper Smelter last week.
“We believe that violence in any situation retards development, demoralises economic players and frustrates clearly defined efforts and procedures in dispute resolutions,” he said.
Meanwhile, Mukuma said social dialogue remained the most effective way of addressing the workers’ plight in the country.
Labels: NUMAW, RUPIAH BANDA, STRIKE
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500 Chambishi workers fired
By ALEX NJOVU
ABOUT 500 workers at Chambishi Copper Smelter (CCS) have been issued with summary dismissal letters following their two-day riotous behaviour in protest against alleged poor conditions of service. And Police have apprehended seven CCS workers in relation to the riot that took place on Tuesday at the copper smelter company.
Both CCS company secretary, Sun Chuanqi, and Copperbelt permanent secretary, Jennifer Musonda, confirmed the figure of the dismissed workers in separate interviews yesterday.
Mr Chuanqi revealed that company property worth about US$200,000 was allegedly destroyed by the irate workers during the riot.
He said management was saddened that the workers rioted before the conclusion of negotiations with union representatives.
Mr Chuanqi said the workers had been given a grace period of three days within which to exculpate themselves and show cause why disciplinary action should not be taken against them.
He complained that work had been adversely affected by the workers’ riotous behaviour.
Mr Chuanqi warned that all workers identified as ring leaders would be dismissed from employment to discourage others from behaving in a similar manner.
By press time yesterday more than 19 alleged ring leaders had been identified while more than 66 workers collected their summary dismissal letters.
Mr Chuanqi appealed to workers to exculpate themselves within the stipulated time so that the innocent ones could be reinstated.
“We’re appealing to the workers to respond quickly to the summary dismissal letters so that those that did not take part in the riotous behaviour could be reinstated because work has been grossly affected and we need local manpower,” he said.
Mr Chuanqi said CCS belonged to Zambians and wondered why the workers destroyed what belonged to them simply because of a dispute that could have been resolved amicably.
“What we are building here also belongs to Zambians, so people must desist from destroying this investment. For those who will not come to collect their letters, we will follow them until they get them so that they can exculpate themselves,” he said.
However, Mr Chuanqi paid tribute to government for its continued support to Chinese investment in Zambia.
He also said the Chinese worker only identified as a Mr Li who was injured during the riot on Tuesday was discharged from the hospital.
And Mrs Musonda also confirmed that workers were served with summary dismissal letters when they reported for work yesterday.
A check by the Zambia Daily Mail crew yesterday at the CCS premises found several riot police officers manning the company.
Some Zambian workers were found waiting to collect their summary dismissal letters while others were reluctant to collect them, claiming that they did not take part in the riot.
Those spoken to said they were ignorant about the whole thing and that they were just forced by some of their colleagues to riot.
Copperbelt Police commanding officer, Antonneil Mutentwa, revealed that six officials of the National Union of Miners and Allied Workers (NUMAW) and their member were apprehended by police in connection with the riot.
Mr Mutentwa said the union officials and their member were apprehended around 17: 45 hours on Tuesday. NUMAW national secretary Albert Mando condemned the action by the workers to riot and damage company property.
“We are not in support of what the workers did. We are also disappointed with what happened on Tuesday because the negotiations have not yet collapsed, so why strike or riot?” Mr Mando said.
Labels: CHAMBISHI MINE, LABOUR, NUMAW, STRIKE
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