Mine workers push for profit sharing

Zimbabwe’s mine workers, grappling with crippling poverty due to meagre wages, are pushing for profit-sharing to become a central pillar of wage negotiations.

In a New Year statement, the secretary general for Zimbabwe Diamond Allied Mine Workers Union (ZDAMWU) Justice Chinhema said despite several mining companies raking in substantial profits from the country’s mineral wealth encompassing platinum, lithium, diamonds, nickel, and gold, average mine workers were earning a meager monthly wage and often struggling to make ends meet.

Chinhema, whose union represents nearly a third of mine workers in the country said several mine workers were struggling to keep their heads above water with their families bearing the brunt of low wages in an industry overflowing with wealth.

“We are saying why can’t we benefit from part of the profits that we help companies generate,” said Chinhema.

He said the current wage structure was exploitative and unsustainable, leaving mine workers trapped in a cycle of poverty.

“It is only fair that we get a portion of

the wealth that we help create,” said Chinhema. “We demand profit sharing be included in our collective bargaining agreements.”

However, mining analysts said the push for profit sharing would be met with resistance, arguing that such a mechanism would deter investment and cripple the industry.

Such a policy would send the wrong signal to investors and jeopardize the future of the industry which is a critical powerhouse, contributing about 13 percent of the gross domestic product (GDP) and generating 83 percent of export earnings in the country.

The profit-sharing arrangement was not feasible and would hurt the industry, the analysts say.

“I think it’s a bit awkward proposition because it is not in every instance where companies even after making a profit pay their shareholders in the form of dividends. So making profit-sharing part of the wage negotiation is not a viable option.

“But where companies think they have made profits and feel like distributing part of the profits to its workers, that should be entirely their own decision,” said a Harare-based mining economist who spoke on condition of anonymity citing protocol issue.

Zimbabwe mining industry employs about 53 000 people, according to the Chamber of Mines.

In the statement, Chinhema also highlighted particularly troubling situations at RioZim’s Cam & Motor Mine in Kadoma, Renco Mine in Masvingo, Murowa Diamonds in Zvishavane, and the closed Dalyn Mine in Chakari and Empress Nickel Refinery.

Miners at these companies have been grappling with staggered salaries for months, receiving only portions of their wages with no clear timeline for resolution. This financial instability and uncertainty have severely impacted their livelihoods.

At the closed Vumbachikwe Mine owned by Forbes & Thompson in Gwanda, over 1 000 workers risk losing their jobs entirely if urgent action is not taken to prevent the mine from collapsing. These employees haven’t been paid since September 2022 and remain in limbo, fearing unemployment without prospect of the mine reopening.

Similar grievances extend to closed operations like Mbada Diamonds, Shabani Mashava, DTZ-Ozegio, Makomo Resources, and recently Zhong Jian. Workers at these companies haven’t received their terminal benefits, hindering their ability to move on and rebuild their lives after losing their jobs.

Chinhema further criticized the inadequacies of the current dispute resolution process for mine workers.

Many cases brought before the National Employment Council (NEC) dating back to 2016 remain unresolved, eroding workers’ trust in the union’s ability to advocate for their rights.

The union had hoped that the recent amendments to the Labour Act would address these issues and Chimhema has urged the Government and relevant authorities to intervene swiftly and address the plight of mine workers across Zimbabwe.

“Workers salaries continue to shrink, the value of the US dollar is being eroded and they are being robbed of their hard earned income through heavy taxes, high bank charges and illegal unjustified deductions by some unscrupulous employers. The plight of mine workers continues to worsen,” said Chinhema.-businessweekly