Zambian miner Kagem Mining has signed a collective agreement with unions that will result in unionised employees receiving a 10% increase in basic salary for 2020 and a further 10% increase for 2021.
The collective agreement followed successful negotiations between Kagem management and representatives of the National Union of Miners and Allied Workers and the Mine Workers Union of Zambia, during which it was also agreed to enhance the company pension contribution from 15% to 20% of basic pay, bringing the effective salary increase to 15% for 2020 and 2021, and the overall increase to 22.5% over the next two years.
The parties further agreed to increase the repatriation allowance by 11% and raise the education allowance by 125%, recognising the importance of education of employees’ children.
Transport allowances have also been increased.
A new grading structure will be implemented.
Kagem chairperson Dr Sixtus Mulenga commended union representatives for the efficient and professional manner in which negotiations were conducted.
“The salary increment reflects expected cost of living increases, and additional benefit increases are in line with industry expectations, while recognising the need for continued investment in the gemstone sector,” he added.
London-based Gemfields holds 75% of Kagem, with the balance owned by the Zambian government.