By Nicholas Bariyo
Special to DOW JONES NEWSWIRES
Workers and management at Zambia's second largest copper miner
Konkola Copper Mines have agreed a 7.5% pay rise, ending weeks of
tense negotiations as labor groups push for higher wages in
Africa's largest copper-producing nation, a union official told Dow
Jones Newswires Thursday.
The deal ends fears of a possible labor unrest at the country's
largest mining employer and is another triumph for mining unions,
which have been embroiled in wage talks with several copper
companies since late last year.
Both sides made compromises during the negotiations, with union
officials lowering demands from as much as a 15% hike to push
through the deal, James Chansa, the president of National Union of
Miners and Allied Workers said in an interview.
"We are signing the agreement this afternoon, yesterday
[Wednesday], we communicated to our members about the outcome of
the talks," Mr. Chansa said, adding that workers had decided to
accept the deal to promote industrial harmony, although the pay
rise is "below" their expectations.
KCM, a unit of Vedanta Resources PLC (VED.LN) employs around
20,000 workers and contractors in Zambia. The company operates
several miners in the Copperbelt province as well as the 300,000
tons-a-year Nchanga copper smelter.
A company spokeswoman couldn't be reached for an immediate
comment.
Talks at KCM have been going on since December. Union officials
say that the company has been reluctant to offer workers a pay
rise, saying that it already gave them a "hefty" pay increment
during 2012. KCM gave a 17% pay rise to its miners last year.
Zambia's mine unions negotiate annual deals.
The Southern African nation has so far avoided the wild cat-like
labor strikes that paralyzed South Africa's mining sector last
year. Companies such as Glencore International PLC (GLEN.LN),
Barrick Gold Corp. (ABX) and China Nonferrous Metals Co. (8306.HK)
have offered pay increments to miners unions to avert possible
labor unrest.
Union officials point at higher costs of living, triggered by
soaring food prices and high inflation rates to justify their wage
demands.
KCM is implementing a number of expansion projects aimed at
increasing copper production to 400,000 metric tons in the next
couple of years from around 200,000 tons produced last year.
Write to Nicholas Bariyo at nicholas.bariyo@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires