Is Zambia’s labour sector on recovery track? 2010 in review – January 2011

By Meluse Kapatamoyo

In 2009 the health sector was paralysed when workers went on a month long strike demanding better pay and better working conditions. Although the sector did not experience the same setback in 2010, a five day work-stoppage by doctors was quickly resolved by government to avoid any long term effects.

However, while reports of industrial disputes by civil servants were few in 2010, the private sector, especially the mines, made headlines. 

In October two managers at Collum Coal, a Chinese owned mine, shot and wounded 12 miners who were protesting against salary delays. The incident left two miners critically injured and two managers arrested.

However, charges against the managers were dropped when the mine management offered to compensate the injured workers.

In December, Collum Coal Mine made headlines again when a miner allegedly died in police custody after he was detained following a dispute with one of the mine managers.

Foreign investors and Zambian labour laws

For several years now, Chinese companies have continued to come under fire from staff and unions for various labour law offences.  

In 2005, five Zambians were shot and wounded by managers during a riot at Chambishi, another Chinese owned mine. At the start of 2010, China Non-Ferrous Mining Corporation (CNMC), which had just taken over Luanshya Copper Mines, battled with the mine union when the company decided to put all its 2, 200 workers on a three-month probation after they had worked for six months.

In a recent interview with Muvi TV Zambia China Business Forum President Sebastian Kopulande said many Chinese investors had not done much to improve their image. "Foreign investors in Zambia are uncultured about Zambian business hence end up finding themselves on the wrong side of the law," he said.

He said foreign investors needed to understand the Zambian business climate and legal requirements before establishing any enterprise.

Outsourcing

Zambia’s mine industry also had to contend with accusations of out-sourcing labour and Konkola Copper Mines (KCM), the country’s largest copper mine, accounting for the largest single mining employers, was among the culprits. The mine was taken to task for employing a foreign national from India to work as a spokesperson.

Communications breakdown

Claims of firms awarding jobs to foreigners at the expense of qualified Zambian nationals also trickled down to the telecommunications industry. 

Zambia’s largest mobile provider, Zain Zambia, now Airtel, was sued by Evans Muhanga, a former marketing director, who accused the company of trying to get rid of qualified Zambian executives by declaring them redundant. In a letter to the labour ministry, he claimed Zain had unlawfully dismissed and replaced him with a foreign national. Muhanga also accused his former boss David Holiday of racism practices and alleged that he had called Zambian workers "monkeys."

While they were many challenges in the telecommunications sector, none had more of an impact than the 1, 000 job losses recorded at the Zambia Telecommunications Company (ZAMTEL), after the company’s partial privatisation which brought in Lap Green Networks of Libya as majority share holders.  According to ZAMTEL, the retrenchments were meant to reduce the bloated workforce from 2, 400, which saw the company spending 70 percent of its turnover on emoluments.

Downsizing

Barclays Bank Zambia added to the list of job-losses when it asked 141 of its managers to reapply for positions that had been merged, upgraded and downgraded. 

As part of the bank’s restructuring exercise some positions had been completely done away with. All available positions were advertised internally for all eligible employees. However media reports indicated that about 50 of the managers who had re-applied were rejected.

Protests and Salaries

In addition to job losses, work-stoppages caused by delayed salaries were recorded around the country.  Workers from Times of Zambia, a government owned newspaper held a three-day protest after a three day delay of their salaries. Management slapped suspensions on three union leaders who they accused of inciting the protest. 

And on Labour Day, May 1, workers at Peregrine Security Company, also downed tools demanding their three month salaries. The monthly pay for each employee ranged between a pitiful K250, 000 and K300, 000. Zambia’s current minimum wage stands at K268, 000.

Labour minister Austin Liato said recently that while government was concerned about increased protests over working conditions, it was not in a position to directly take action on employers who failed to meet workers demands for salary increments, "Government can only play a regulatory role and not involve itself in discussions between workers and their management."

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Find out more about Zambia's Labour Laws in our Decent Work section.