Marange Resources downgrades 700 workers

via Marange Resources downgrades 700 workers | The Zimbabwean 10 July 2014 by Nelson Sibanda

Government owned Marange Resources has downgraded the status of 700 workers, in an unfair labour practice aimed at cutting costs.

Some of the affected workers have been working for the company for the past four years in different capacities. Seventeen more staff members have been dismissed under unclear circumstances without notice and allegedly replaced with those connected to top mine officials. As they have been casual workers for the past four years, they will not receive terminal benefit’.

The dismissals came in the wake of assurances by management that no worker would lose employment as the company’s fortunes were improving. Highly placed sources told The Zimbabwean that since the mine started operations, workers were made to sign employment contracts every three months.

Following complaints, the contracts were changed to yearly. “End of last June, the workers were surprised to learn that the company had unilaterally changed its position and required them to sign three-monthly contracts depending on who you know in higher places,” said a senior official on condition of anonymity.

The source said the mine claimed it was facing financial challenges, so employment grades were reviewed downwards. Those in B3 and B4 grades were demoted to B1. Desperate workers had grudgingly accepted this in order to remain employed.

Managers earning $2 000 and above, plus other benefits, were not affected. The majority of workers ranging from the lowest picker to machine operator earn salaries ranging from $300-$720 per month.

Labour experts said the mining industry could not have temporary workers provided mineral extraction was in progress. Mark Mabhudhu, acting chief executive officer at Marange Resources, said his company was under attack from several quarters and would not comment over the telephone.

“The diamond mining industry is very sensitive to media reports, more so with the Kimberly Process Certification Scheme. Please forward questions through email and we will respond shortly,” said Mabhudhu, but he had not honoured this promise by the time of going to print.

Recently, government suspended senior management at the company for alleged looting running into millions of dollars involving inflated procurement receipts.