Thursday, February 26, 2015 8:56:03 AM
Zimbabwe have agreed to raise minimum pay for workers by 3% -
Godfrey Marawanyika (Bloomberg) | 24 February 2015 10:43
hand shake - deal making - credit Geraint Rowland
Mine companies operating in Zimbabwe including Rio Tinto Plc and
Impala Platinum Holdings Ltd. have agreed to raise minimum pay for
workers by 3 percent, according to a circular verified
by a union official.
While the agreement is below the 10 percent raise the Associated
Mineworkers Union of Zimbabwe initially demanded for platinum and diamond
miners and 6 percent for other minerals mine companies had proposed a
wage freeze, a circular from the Chamber of Mines showed.
The increase, which compares with a 1.3 percent annual decline in prices
in January, comes as Zimbabwean companies struggle with increased taxes as
the country is struggling to meet a government workers wage bill that
accounts for about 88 percent of the budget.
Rio Tinto has told staff that the taxes threaten the viability of its
Murowa diamond mine.
“We have just agreed to this because employers were saying government and
the central bank have said there shouldn’t be any salary increases this
year,” Tinago Ruzive, secretary general of the union, said in an
interview, confirming other details in the document.
Zimbabwe has the world’s biggest platinum and chrome reserves after South
Africa as well as deposits of diamonds, iron ore, gold, coal and nickel.
Anglo American Platinum Ltd., Impala and Aquarius Platinum Ltd. Caledonia
Mining Corp., operate mines for the precious metal in the country.
©2015 Bloomberg News
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