The Outsourcing of over 4, 000 KCM Mineworkers condemned

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KCM

Copperbelt Trade and Development Forum (CTDF) Executive Director Vincent Lengwe has said that the corporate conduct by some of the major mining companies on the Copperbelt in undermining the national development process is extremely alarming.

In a statement to the media today, Mr. Lengwe said it still remains a fact that the mining in the Zambian context will continue to play a pivotal role in the macro-economic outlook of the country, particularly on the aspects of meaningful job creation and poverty eradication with potential retrogressive effects on the attainment of the Seventh National Development Plan(7NDP ) and Sustainable Development Goals(SDGs).

Mr. Lengwe said that the recent move by Vedanta’s KCM to handover more than 4,000 mineworkers to JHX & other contractors is a direct contradiction of Government’s labour reforms and the national decent work agenda which must be probed extensively, and rescinded if the current political leadership is in charge of prudently managing economic affairs in the best interest of its citizens.

Below is the Full statement

The corporate conduct by some of the major mining companies on the Copperbelt in undermining the national development process is extremely alarming.

It still remains a fact the mining in the Zambian context will continue to play a pivotal role in the macro-economic outlook of the country particularly on the aspects of meaningful job creation and poverty eradication with potential retrogressive effects on the attainment of the 7NDP and SDGs.

We cannot talk about the desired economic growth, no matter how impressive the GDP statistics maybe, which in any case is an obsolete measure of economic progress, if we are failing to generate quality jobs.

The recent move by Vedanta’s KCM to handover more than 4,000 mineworkers to JHX & other contractors is a direct contradiction of government’s labour reforms and the national decent work agenda which must be probed extensively, and rescinded if the current political leadership is in charge of prudently managing economic affairs in the best interest of its citizens.
Indeed we sympathise with the mining labour unions due to the ambiguities in the current labour legislation which impedes the collective bargaining discourse and industrial relations.

The current levels of casualisation in the mining industry is already alarming at about 70% with an estimated workforce of 85, 000 which only represents a paltry 0.8% of the total labour force in Zambia against a poverty rate of 54.4% and an estimated population of 15 million people supported by 10% formal sector jobs.

Furthermore, the average salary of K3, 200 for majority ordinary and pensionable mineworkers is below the basic needs basket which if subjected to casualised slave wages will fall below the PAYE taxable threshold with a negative impact on domestic revenue mobilisation as it amounts to wage evasion.

Therefore, in view of the current and progressive rebound of copper prices on the global market of about US$7, 000 per tonne, and also the recently revised mineral royalty tax that was adjusted on a sliding principle of between 4% and 6% when copper price fluctuates between US$4,500 per tonne and US$6,000 per tonne respectively, we therefore urge government to expeditiously embark on the following course of actions;

a) Spearhead the conclusion of the labour reforms that were initiated over ten (10) years ago, and enforcement of the Employment Act CAP 268 as amended by Statutory Instrument No. 15 of 2015 on curbing casualisation

b) Re-introduction of the windfall tax on base metals as the current sliding mineral royalty tax only compensates for the depletion of extractive mineral resources while ignoring the windfall gains in commodity prices.

Finally, we also call upon government through the leadership of the republican president, H.E. Edgar C. Lungu to ensure that the Zambia EITI Bill and domestication of the African Mining Vision is tabled during the next session of parliamentary proceedings.

Issued by
Vincent Lengwe -Executive Director
Copperbelt Trade & Development Forum (CTDF)

8 COMMENTS

  1. +1
    -1
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    They played you foools…best you ask for the minutes from last weeks meeting with your ministers.
    Wake up from your docility!!

  2. +2
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    These are FAKE ORGANISATIONS , VEDANTA is a mining company how to give 4000 miners to JHX who is a Chinese road contractor, WHAT SKILLS WILL THEY TRANSFER?

  3. +2
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    Never I repeat never do business with India. Why do you think China wants to exterminate them. We are better of doing business with european nations, at the least they pay you, even if the look down on you. Indians can be some self absorbed AssEEs. Pardom me.

    • +1
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      We are not a charity.
      We are here to make money by combining:
      ***Cheap labour
      ***Favourable power charges
      ***Relaxed environmental regulations
      ***A friendly, and accommodating, government, and
      ***Abundant resources
      …ALL THE INGREDIENTS FOR SUCCESS!!

  4. +3
    -1
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    Look at the big picture people, indians are traders, they buy and sell. Thats what they do best. They are not miners and will never be. When it comes to trade thats their game, they will beat you at it. They bought kcm for k25million, found k60million in the bank account, sold all the old structures as scrap metal and are now selling off the workers to JHX. careful who you deal with. If i were the politician to sign a deal with the indians, i would never do it, especially that the politicians do not understand the complexities of the mining industry. One wonders why the powers that be, dont let the many zambian mining engineers run one of our many mines, and let that mine be owned and run wholly by zambians. ZCCM, where are you, any ideas, or just waiting for dividends.

  5. vote

    To my friends in KCM, this is just the beginning of VERY BAD things to come. You will do yourselves a very big disservice if you allow KCM to go ahead with this business plan. Ask your friends working for JCHX at their Chibuluma South Mine and NFCA sites; the conditions are pathetic. Whether your are senior staff or general payroll, you will all suffer the consequences when this plan is fully implemented. First and foremost, you will be casualised, but doing the same work you are currently doing at about a quarter of the pay. The benefits you are currently enjoying will be thrown out of the window. Safety issues will be just a story. DO NOT SAY YIU WERE NOT WARNED.

  6. vote

    Wen th kcm chairman came he visited plot one,probably he left a parcel there of which all these issues were agreed,wake up Zambia if u think politicians r there to help u,think again.its looting tym,who is minting more between the politcians??

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