First Quantum Minerals (FQM) has signed a new three-year Collective Agreement with its recognised unions, National Union of Mine and Allied Workers (NUMAW), Mine Workers’ Union of Zambia (MUZ) and United Mineworkers Union of Zambia (UMUZ) that will commence in January 2017.
The agreement will see unioniSed employees receiving increments of 7 percent, 6 percent and 6percent over the next three years respectively. The increments will be coupled by a progressive increment in education allowance each year over the three year term of the agreement.
“Long-term relationships with employees are key to our operations,” said Kansanshi Public Relations Manager Godfrey Msiska. “Even though our profitability has been hit by falling copper prices and rising operational costs, the company understands the pressure that increasing costs of living place on its employees and their families. By signing this agreement, employees are secure in the knowledge that comes with a longer-term agreement, and the company can continue to operate sustainably going forward.”
Kansanshi is Africa’s largest producer of copper and has a workforce of 2,841 people. However, production was down by 14 percent to 227,000 tonnes of copper in 2015 compared with the previous year due to operational constraints. Lower world market prices pushed revenue from Kansanshi for the year down 21 percent while gross profit was down 70 percent for the y