The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has called on the National Employment Council (NEC) for the mining industry to urgently address the severe impact of currency devaluation and skyrocketing prices on mine workers, as the cost of living continues to escalate.
In a letter dated October 8, 2024, ZDAMWU General Secretary Justice Chinhema urged the NEC to implement an immediate Cost of Living Adjustment (COLA) to shield workers in the mining sector from worsening economic conditions. The letter was also sent to the Chamber of Mines, the Ministry of Labour, and union members.
“We request an urgent meeting of NEC parties to consider a COLA to cushion mine workers from the devastating effects of the Zimbabwean currency’s devaluation and the surge in basic commodity prices, which are eroding the USD component of their salaries,” Chinhema stated.
ZDAMWU is pushing for a universal adjustment of US$200 to help workers cope with inflation and the erosion of their purchasing power.
“Mine workers are demanding an across-the-board COLA of US$200 to offset the impact of currency devaluation,” Chinhema emphasised, affirming the union’s full support for its members’ demands.
Chinhema added that the union is dedicated to improving working conditions and safeguarding mine workers’ earnings in a highly volatile economic environment.
“As a trade union with a mandate to advocate for better working conditions and protect the rights of mine workers, we agree with our members on the urgent need for cost of living adjustments. This will preserve workers’ living standards, maintain morale, and prevent potential labour disputes, ensuring stable operations,” he said.
The union leader highlighted that recent economic shifts, including the devaluation of the Zimbabwe Gold (ZiG) and significant price hikes in basic goods, have drastically reduced workers’ real earnings. The Reserve Bank of Zimbabwe’s (RBZ) exchange rate adjustment, he said, has further eroded mine workers’ already inadequate wages.
“The recent exchange rate adjustment by the RBZ has negatively affected the current salaries, which were already below the Poverty Datum Line (PDL). Mine workers are worse off than before,” Chinhema stated.
To stabilise wages, ZDAMWU is proposing quarterly salary reviews and a shift towards 90 percent of mine workers’ wages being paid in USD to protect earnings from future currency fluctuations.
Chinhema urged the NEC and other stakeholders to act swiftly as, “These hardworking and patriotic workers need to be cushioned without delay.”
In an interview with CITE, Chinhema explained that the current Poverty Datum Line in Zimbabwe requires a minimum income of around US$600, yet the NEC’s salary benchmark for mine workers is significantly lower, at US$372, with 65 percent paid in USD and 35 percent in Zimbabwean dollars (ZiG).
“This is a pathetic salary that falls far short of meeting workers’ basic needs,” he remarked.
Chinhema also criticised some employers, particularly Chinese-owned mining companies, for paying even less than the already inadequate NEC-stipulated wage. He added that mining communities in rural areas like Gwanda and Brunapeg face unique challenges, as they often rely on foreign currencies like the South African Rand and the Botswana Pula, further straining workers’ meagre incomes.
“Living standards in rural mining communities are extremely high. That’s why we are demanding this COLA—it cannot be compared to any other sector,” Chinhema concluded.
