(right) and his Deputy George Zulu (centre) inspect the Lusaka fuel
storage depot with Lusaka Province Minister Obvious Mwaliteta before
commissioning of the plant
THE Government has objected to plans by Glencore-owned Sable Zinc Mine in Kabwe to retrench 170 employees following the placing of the company on care and maintenance due to the withholding of K64 million VAT refund by the Zambia Revenue Authority (ZRA).
Mines, Energy and Water Development Minister Christopher Yaluma said the Government was not going to accept the planned move by Sable Zinc to lay off the miners.
Mr Yaluma, who was commenting on the pending job losses at Sable Zinc, said as far as the Government was concerned, miners at the Glencore-owned company were guaranteed their employment.
“There is procedure to be followed when retrenching workers and as far as I am concerned, that procedure which requires a company to first of all inform the Ministry of Labour before down-sizing labour has not been followed by Sable Zinc,” Mr Yaluma said.
“So like I have highlighted and indicated, we are not going to accept any job-cuts at Sable Zinc because we don’t know why they want to do that.”
The minister called on Sable Zinc not to play games with the Government over matters of employment.
“We have guaranteed people employment and so not until they share with us why they want to retrench, nobody is going to be retrenched,” he said.
Mr Yaluma said Sable Zinc should be aware of the needed steps in labour circles that required employees to be notified way in advance before they could be retrenched in order for them to prepare for it.
“As it is, they can’t announce their intention to retrench workers just like that,” Mr Yaluma said.
When contacted, Labour and Social Security Minister Fackson Shamenda also expressed ignorance of the pending job-cuts at Sable Zinc.
“I have not been briefed yet and I have just been hearing about it, so I can’t make a comment for now,” Mr Shamenda said.
A letter signed by Sable Zinc general manager David Littleford obtained by the Times at the weekend revealed that the company was in the process of retrenching 158 unionised employees and 12 management staff next month to reduce costs of running the institution.
This is in view of the enforcement by ZRA of rule 18 on value-added tax (VAT).
Bufi, PF knows the facts why jobs will be lost at the mines. Any one who believes what PF minions says is simply a f00l.
KCM and mopani will also retrench very soon because PF is demanding a lot of protection money on top of withholding VAT. If PF was not demanding and receiving protection money from the mines, it would have managed to compel the mines not to retrench.
Protection from what?
what is this who-ha?? the PF government retrenched 150 youths in western province,,,nobody objected!!!,, let Glencore retrench also, they learnt from PF government afterall
@Cdoy,
Remember CEOs of foreign companies being hounded out of the country without due process? It because they refused to pay protection money to PF for party activities.
PF is run like a mafia empire. Dangote is sqweezing Shamenda right now because he has paid protection money to Sata himself. So it did not make sense to bribe Shamenda a small fish in the game.
Rüschlikon is a village in Switzerland with a very low tax rate and very wealthy residents. But it receives more tax revenue than it can use. This is largely thanks to one resident – Ivan Glasenberg, CEO of Glencore, whose copper mines in Zambia are not generating a large bounty tax revenue for the Zambians. Zambia has the 3rd largest copper reserves in the world, but 60% of the population live on less than $1 a day and 80% are unemployed. Based on original research into public documents, the film describes the tax system employed by multinational companies in Africa.https://www.youtube.com/watch?v=WNYemuiAOfU
Dear Minister,
You are foolish to assume investors will wait for their money in VAT refunds to be idle in Govt Coffers of PF when their business has to run on borrowed monies.
PF Govt is not supporting investors with due Governance and Treasury policies since the coffers of the Govt are empty and money wastefully spent on building infrastructure which the country at present cannot afford. A lot of money has also been swindled by the brokers .
Minister, you are sending wrong message to the world on your policies and it is better you and the FM find ways to get the mines back in shape well before elections, if you want to be in power.
@Bando Bandista
You are wrong. The gov’t are doing exactly what their citizens want AND following to the letter the VAT Rule in place in our ZRA Regulations on such tax. It is true some tighter changes need to be made to close the loopholes in the wording of VAT Laws pertaining to exports in Zambia.
Copper mining is a strategic industry, and accounts for a major GDP contribution. From the figures provided by ActionAid we are losing a lot of Revenue by the middlemen who stockpile and release copper to affect the market price. We are forced to take what they want to give us which frankly is not a lot.
It is not south VAT per se but about Control and Revenue, Revenue! It would be foolish to allow investors to decide against our rules/laws at will.
The Govt should not just object they started these problems find solutions this is not good for the country
The proponents of withholding VAT refund now must walk their talk. Fr luonde, Nawakwi, Mmembe etc buy that mine and lets see you run it successfully under the new VAT dispensation. Please allow Yalum to prepare you your financial plan. Lunatics
Well done Sir, Mr Yaluma. The nation is behind you except for a few unpatriotic citizens with pompous and wrongly held ideas on their intellect.
It is standard practice to give notice on any employment terminations of any kind. Here in UK redundancy notices have to be given usually 3 months ahead. Employees have the right to be given time to find alternative employment and to attend interviews for prospective employment.
The fact that Glencore has issued public notices without proper consultations puts. Them in the wrong to our legal advantage.
We support you. PF are facing off the Giant like David did with Goliath. We cannot be controlled by our ‘Guests.’ We will if need be find alternative investors or mine for ourselves if need be.
This government is simply not in position to rule ….we have wasted over 3 years and nothing has improved.
what rights has the government to stop companies from retrenching workers. My point of view is that a company pays salaries from profits and all other things, so how can they come in and stop a company from retrenching; they know that they are running at a loss. why did the government retrench it s workers, it is no wonder investors are running away from here, too much harrasement by the government.
chaps are thick! first of all retrenchment needs two months notification by law in zed. secondly the two grounds for retrenchment are (i) closure of business and (ii) shrinkage of business… vat refunds is not on the list (by law). mr david littlehead your job is on the line for inciting rubbish. very styopet!