Zimbabwean mineworkers not satisfied with 5% pay increase

Published May 6, 2014

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Harare - A new wage hike for mineworkers in Zimbabwe will worsen the bottom lines of producers as they already have to pay money into community share ownership schemes agreed under indigenisation agreements signed with the government.

Mining groups in Zimbabwe include Anglo American Platinum, Impala Platinum (Implats), Aquarius Platinum and Mzi Khumalo’s Metallon Gold.

Most of the foreign-owned mining companies have already signed comprehensive empowerment deals with the government. However, these now have to be reviewed to rule out monetary compensation for shares ceded to black Zimbabwean groups, according to government officials.

Mining companies have to honour payments to community share ownership schemes, with most having already started making the payments. Zimplats, which is 87 percent owned by Implats, has already completed payment of its $10 million (R105m) obligations under this scheme, which mining executives say is mandatory for foreign mining firms.

The Chamber of Mines of Zimbabwe and trade unions representing mineworkers have agreed to a 5 percent wage increase, according to a chamber circular, although the mineworkers are not happy about the raise.

It effectively raises the salary for the lowest-paid mineworker in Zimbabwe to $238.41, or about R2 500 – in stark contrast to South Africa, where striking platinum workers are demanding that the entry salary be raised to R12 500 a month.

Sylvester Mushaike, the general secretary of the National Mineworkers Union of Zimbabwe, told Business Report yesterday that the union was not happy with the 5 percent salary increase.

“We are not happy in any way. It’s a bit too low, particularly when you look at mines that are in luxury, such as the platinum mines. They have the capacity to go beyond 5 percent,” he said.

Sources in the mining industry said tensions were still simmering between the mineworkers and mining companies, with others adding that the union was weighing its options despite the wage deal.

“We are trying [other options] but it’s still confidential information. We may even have to push harder,” a source said.

The wage rise has already had some effect on some companies. Last week Zimplats reported a marginal increase in production costs “mainly due to the impact of an interim wage increase for National Employment Council graded employees”.

Unlike in South Africa, Zimbabwean workers seem not to have the option of striking for fear of being crushed by the country’s security forces, union leaders say.

“We just have to see how we can manage to survive, even through difficult times,” said a private sector worker who attended Workers Day celebrations in Harare on Thursday.

“We can’t have demonstrations because the police will deal with us. Most companies are struggling to pay workers and we have limited options,” the worker said.

Morgan Tsvangirai, the Movement for Democratic Change leader, called on Thursday for “action” in a bid to improve the plight of workers.

“I believe in action. Maybe I am old now to do that. You, the youths, should wake up and act. Nothing will be addressed without action,” he said.

George Nkiwane, the president of the Zimbabwe Congress of Trade Unions, has warned that employees could take to the streets if their concerns remained unresolved.

The union federation is also objecting to planned amendments to labour laws in Zimbabwe, which it says will suppress workers’ rights and allow for unfair dismissals.

“We reiterate that we will use all the energy we have to resist changes to the labour law that have adverse effects on the workers, even if it means taking to the streets to protect workers,” Nkiwane said.

The private sector in Zimbabwe has its own viability problems and has been pushed into a corner. Most companies are operating way below half of their capacity and have had to retrench in downsizing programmes.

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