First Quantum’s Kansanshi Mining has offered a minimum 22 percent initial increase to both unionized and non-unionized workers, disputing claims by unions that the mining company had offered their members a mere 6.5 percent annual salary increase.
According to a statement made available to radio phoenix, FQM Kansanshi management says the initial wage increase will also be complemented by additional increases based on results of individual performance assessments to be concluded by May 2012, and backdated to 01 January 2012.
Management says the offer to both unionized and non-unionized workers is 13 percent minimum, a 13th cheque which equates to 9 percent, bringing the overall offer to 22 percent minimum increase for all employees in basic pay.
First Quantum holds 80 percent stake in Kansanshi Mine while the remaining 20 percent is owned by the Government of the Republic of Zambia (GRZ) through ZCCM-IH.
According to the statement, the offer by KMP management is for a two-year period with the increases applied immediately to basic pay and all allowances as from 01 January 2012 for all workers.
The company stressed that Unionized and non-unionized workers are all entitled to the same increases adding that Kansanshi Mine does not discriminate against employees based on their union membership.
Kansanshi mine Management says Before May 2012 a performance assessment will be conducted on all workers and an outcome of that may be additional increases applying to those employees who would have moved up a notch within their salary band
Furthermore, KMP management committed to harmonious industrial relations with unions as key partners to create a relationship built on trust for greater productivity, a pre-requisite that allows all stakeholders get an equitable return or benefits.
The Allowances for all employees include Education allowance increased to 3.5 million kwacha per year up from 3million kwacha per year increase of 16 percent paid to employees regardless of whether they have school aged children or not.
It also includes Leave passage increase to 1.8 million per year up from 1 million per year increase of 80 percent and Shift differential increased by minimum of 13 percent per month based on enhanced basic pay.
The company allowances will also include the 13th cheque equivalent to a month’s salary of enhanced basic pay and this equates to 9 percent per annum.
KPM management says these increases will be effective 01 January 2013 and will increase allowances tied to basic pay