Mining companies to challenge 3 percent wage increase

Mining companies are bracing to challenge the recent three percent wage increase awarded to workers citing viability challenges.

The Chamber of Mines and the Associated Mine Workers Union of Zimbabwe reached an agreement on February 13 to award workers a three percent increase for 2015.

Recently, central bank governor, John Mangudya said the economy could not sustain wage increases in 2015, citing the need to link salaries to productivity.

The increase will see the lowest paid earning $245.56 from $238.41 per month.

However, according to a source at the chamber, miners were likely to challenge the award.

“Some (miners) say they can’t afford. Many of them are definitely going to challenge the award,” the source said, adding that many companies were facing difficulties in the current economic environment at a time when the country was in a deflation mode.

Zimbabwe’s annual  inflation slid to -1.28 percent in January from the December 2014 rate of -0.80 percent.

According to a circular to members, the chamber advised them to apply to National Employment Council for mining  for exemption should they not be in a position to pay the new salaries.

“Applications for exemption should contain financial statements outlining the company’s position, together with a letter setting out the exemption required, which should include the quantum that can be afforded,  the duration of the exemption,  and any other factors that are considered relevant. Details of any recovery plans should also be included,” read the circular.

Associated Mine Workers of Zimbabwe officials could not be reached for comment.- The Source

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