KONKOLA Copper Mines’ proposal to outsource some of its operations has unsettled mining unions, employees and local contractors and suppliers.
KCM plans to outsource three major operations and has since notified both the labour commissioner and the major mining unions such as the Mineworkers Union of Zambia (MUZ), the National Union of Miners and Allied Workers (NUMAW) and the United Mineworkers Union of Zambia (UMUZ).
However, the unions are sceptical of the proposals and have been engaged in protracted discussions demanding additional information and seeking clarity on how workers would be affected by this move.
According to a note dated August 23 to the three unions by KCM vice-president-human capital management, a C. Chikwanda obtained by The Mast, the Vedanta Resources’ owned mine explained that the workers would retain their status of KCM employees.
“Following our meeting held on 9th August 2017, where a commitment was made to provide additional information on the outsourcing at KCM clarifying the implication for your members, below are further details; KCM has taken a strategic decision to outsource some of its operations in its continued quest to achieve its strategic objectives and remain a world class operation. The anticipated growth from this will significantly increase the size of our operation. This in turn will ensure job security in the long term as well as benefit our community and indeed the Zambian economy as a whole,” Chikwanda stated.
“This outsourcing approach will be temporary in nature. It will allow KCM to engage well-established technical partners to accelerate production and more importantly, to bring in much required expertise. There will be a great emphasis on skills transfer. To integrate this approach with our current operations, KCM has decided to retain labour and second this labour to the contracting partners. The rights and benefits of KCM employees will remain as per company policy and the collective agreement will continue to accrue – KCM employees will remain on the KCM payroll. Employees will remain in their current respective unions and negotiations will continue to be handled by KCM as part of the normal collective bargaining process. I trust this sufficiently clarifies any outstanding issues.”
However, the unions, suppliers and employees still doubt KCM’s commitment to protecting local interests and job losses in the implementation of the outsourcing approach.
On Monday, another inconclusive meeting was held to discuss the matter further.
And on Thursday, president Edgar Lungu was scheduled to meet suppliers and contractors at Kitwe Civic Centre with sources indicating that the matter was expected to arise during the engagement with the Head of State.
“This will not be accepted. We have been in this situation before, and we know that these guys use all sorts of nice explanations, which prove to the contrary at the end. The casualty always is a Zambian mineworker. We are very unsettled by this pronouncement because I can assure you that it’s foreign contractors that will be given preference and I am sure you know what that means to us the locals,” said a supplier who opted anonymity.
Another said: “Outsourcing is technically a cost-reduction measure, so if you want to reduce costs, how do you say all workers will remain under KCM but seconded to contractors? Does that make sense? Then why not let the status quo continue, because in one breath you say everything will remain binding but in another, you insist on outsourcing? How does that work without disturbing the workforce, the unions’ membership and contractors and suppliers? There is something fishy here and I hope none of the other stakeholders will accept this because there will be both economic as well as political chaos if this is implemented. The discussions continue but we will not bow to their demands.”
Areas earmarked for outsourcing include Shaft four, The Open Pit and TLP, according to KCM sources.