Tuesday, 15 April 2008

New rules on sub-contractors' wages?

In a long report on the ongoing Supreme Council meeting of the Minewrokers Union of Zambia, The Times today reports on what could be an extremely important reversal of the culture of casualisation affecting mine workers.

It quotes
MUZ President Rayford Mbulu saying, "we support the initiatives being taken by the Labour ministry to at least peg salaries for contracted workers at 80 per cent of the permanent employees' salaries." This is the first I have heard of this proposal, but it would mark a huge improvement on current policy, which is, there is no policy. The comparative wages paid by the mine houses and the sub-contractors they employ are discussed at length in the 'For Whom the Windfalls?' report, which finds that two of the biggest subcontractors typically pay as little as 50% of the wages paid for precisely the same work in some mines. The report revealed a range of different approaches taken by the various companies, with some washing their hands of responsibility for wages paid to workers risking their lives in their mines, so long as they were sub-contracted, and others establishing rules on relative pay. Mbulu complained that some sub contractors in the mines were paying 'peanuts' to their employees under the pretext that the rates which they were getting from the mining companies were low. Rightly, it seems to me, the Government appears to have decided that an unregulated private sector was unlikely to come to a uniformly progressive answer to the problem.

Mbulu raised a vast range of other complaints against the mining companies. He expressed sadness that some companies are not respecting the provisions of the recognition and collective agreements, which they signed with the union. This statement was made in the context of criticism of First Quantum Minerals which has unilaterally declared a dispute with MUZ without following the provision of the Industrial and Labour Relations Act. Mr Mbulu said that the union was not averse to either party declaring a dispute but that the move should be done within the provisions of the law.

Mr Mbulu expressed concern at the increasing number of foreign labour in the mines, which could easily be obtained locally. He said there were cases where foreign workers learnt their skills in Zambia, tutored by Zambian experts but only to take over the jobs later.It was sad that some firms sidelined highly qualified Zambians in preference to foreign nationals who were less qualified and had no experience. He implored the ministry of Labour and Social Security to scrutinise work permits of foreigners and only allow those with skills, which could not be easily obtained locally. Mr Mbulu said that the union was concerned at the high rate of mine accidents in some companies, which had resulted in serious injuries and deaths. Some companies, he said, were not complying with safety standards. Mr Mbulu has since called on the mine safety department (MSD) to intensify audits in the mines to curb the rising number of accidents resulting from non-compliance of safety regulations.

Mbulu said the greatest challenge the union was facing was the recruitment of new members in the light of the increased mining activities on the Copperbelt, North-Western, Central and Southern provinces.Mr Mbulu said that MUZ had made strides to establish linkages with most mining houses abroad. To this effect, MUZ had signed a recognition agreement with LTA in Konkola, an access agreement at Albidon Nickel Mine in Mazabuka and would soon have members at the mine.

On the increased mineral royalties from 0.3 to six per cent, MUZ commended the Government for the decision, which was long overdue.He said the investors were reaping far beyond their anticipated profits."Today copper prices stand at more than US$10,000 per tonne and we see no need for investors to claim that the taxes are too high," he said.

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