Zimbabwe: Prospect Lithium Zimbabwe's Arcadia Mine Workers Seek Union Protection - Company Running At a Loss Plans to Downsize

23 December 2023

Workers at Prospect Lithium Zimbabwe (PLZ) and others at smaller companies contracted by the mine have moved to join labour unions amid reports of threats against doing so by the employer.

More than 100 workers have since joined the Zimbabwe Diamond Allied Mine Workers Union (ZDAMWU) and requested the union to look into their conditions of service following the death of at least two workers earlier this year.

NewZimbabwe.com working in partnership with Information for Development Trust (IDT) unearthed various unfair labour practices at PLZ.

This publication reported how employees worked under conditions that exposed them to health risks and together with their families lived under very poor conditions.

During New Zimbabwe.com's three-month investigation into the conditions of work at PLZ, including the death of a worker in a freak accident while mending a truck tyre, another worker died after being run over by an unmanned and faulty dumper truck while he was sleeping in a wooden cabin at the mine.

The issue of poor wages and the small number of locals employed by the company was another cause of the workers' disgruntlement.

The situation however appears to have deteriorated since then and, according to information gleaned by this publication this week, the company plans to lay off more workers and cut the wages of those that will remain.

Secretary General of ZDAMWU, Justice Zinhema confirmed the latest developments and said the union was now seized with all the issues affecting the workers.

"Yes, I can confirm that workers at PZL have joined our union and they have many genuine concerns that need to be resolved with the employer. So far we have 197 workers who have joined. And, as we talk now, the employer has already indicated an intention to further cut down on the workers' poor wages and disengage several of them by the beginning of 2024," Zinhema said in an interview this week.

This publication has also gathered that the company has, through official management communication, informed the now-established workers' committee that the company was now running at a loss and would lay off workers and cut salaries beginning in 2024.

"Workers were told that this is because the lithium prices on the world market have fallen way below anticipated levels. As a result of this, the company has decided to reduce the labour force by plus or minus 164 employees effective from January 2024," said Zinhema.

This means that more people will not be able to renew their contracts come January.

Screening will be based on behaviour or discipline as well as the performance of individuals. The company has also resolved to introduce a two-tier salary structure whereby 10% will be paid in Rtgs at the bank rate with effect from January.

Following the latest developments the company convened an emergency works council briefing where employees were told some of them were likely to be deployed to other departments from their usual department while all new recruitment will be halted.

Chinhema said the rising number of employee fatalities and injuries occurring in mining areas was quite alarming.

According to the State of Mining Industry Survey 2023 report recently released by the Chamber of Mines, 110 fatalities were reported during the period between January and September 2023. A total of 92 percent of the accidents under review occurred underground, with large-scale operations contributing 18 percent to the total accidents.

Until the publication of the appalling workers' situation at Arcadia, there had been no workers union at the mine as the employer had, through threats and verbal warnings, said unionism was not tolerated at the mine.

Any worker who sought to stand up for their rights, or even seek to associate with any workers' union, or was deemed to be outstandingly vocal on workers' complaints, lost their jobs while some were threatened with dismissal.

The situation has since changed.

Some of the employees' complaints included the non-existence of decent ablution facilities and or bathrooms, a situation that resulted in employees resorting to the bush system. They also used tiny makeshift grass structures for bathrooms.

While mine management and Chinese employees lived in decent houses in closed communities workers lived in sub-humane accommodations comprising wooden cabins that hardly sheltered them from rain, wind or cold.

They also complained that they were made to work in unsafe environments and without protective clothing. A lot of recommended safety measures were ignored at the mine, they said. This resulted in the needless deaths of two colleagues who died in separate, avoidable accidents.

One of the victims of the freak accidents at the mine is Simbarashe Madera (26), who worked as a rig operator. He was killed on May 31 this year when a parked dump truck moved in the middle of the night, running over the wooden cabin in which Madera slept, crushing him to death. It was later found that the truck had a defective braking system.

Two other workers who shared the cabin with Madera were lucky to escape with injuries.

Madera left behind a three-month pregnant wife and two children. His death further strained already fragile relations between the workers and the employer. Madera's family was angry and demanded compensation before they could bury him. The standoff was only thawed following the intervention of the local traditional leadership led by Chief Chikwaka.

The family insisted that the company compensate them and facilitate a cleansing ceremony to appease the dead following local traditional beliefs.

Madera's sister, Nyasha said in an interview recently that the company had done nothing with regards to compensation to date.

"We never heard from them since the time Simbarashe died. We only went to the site and managed to clean blood from the place where he was killed and that was it.

"The company paid a cow to the chief and it was slaughtered to feed people who attended the cleansing ceremony," she said.

"His wife has since given birth to a baby boy and, with her husband gone, she decided to go back to her parents.

"We were hoping that by now the employer would have done something to compensate our family and especially Simbarashe's wife, for the loss of a breadwinner. But almost a year on, we are still waiting. Our brother was the breadwinner but now I'm taking care of his children.

"The eldest child will be in Grade one next year but I don't know where to start in terms of school fees, uniform and the attendant expenses, " she said.

Nyasha said the truck owners, Richmark, upon being approached for compensation, had told them to go to the courts. It appears that would be the only option if they could get money to engage a lawyer.

Contacted for a comment, Zhongjingfu Ltd HR Bhanda said "I cannot comment on such a sensitive issue over the phone, especially if I haven't seen your credentials. You might be a bogus journalist."

Another worker, Stanley Jacob Haruzivi--born in 1987--also died on 8 February this year while fixing a faulty dump truck wheel.

He was also working for Richmark.

Investigations established that Haruzivi was operating in a poorly equipped workshop when the truck tyre burst and the ring flew off, blowing his head open.

Eyewitnesses who spoke on condition of anonymity said there were no safety cages in the place where the tyres were mended and the pressure gauge was defective. The victim was working without protective clothing.

Police in Goromonzi confirmed both accidents.

Haruzivi's family has since been compensated but there are squabbles within the family following the seizure of all the compensation proceeds by Haruzivi's brother who refused to share with anyone, including the deceased's widows.

"All we know is that money was released. We don't know how much or what was concluded because our brother who took the money never communicated with anyone including the deceased's widow," said a relative who asked not to be named.

Arcadia holds one of the biggest hard-rock lithium reserves in the world and is run by Prospect Resources through PLZ, its subsidiary.

Prospect Resources operates under the China-listed Zhejiang Huayou Cobalt Co Ltd conglomerate which is engaged in research relating to, the development and manufacture of lithium battery materials.

The Chinese multinational concern is mother to another subsidiary that has been accused of dealing in "conflict cobalt" in the Democratic Republic of Congo.

The subsidiary, Congo DongFang International Mining, was busted by a 2016 joint Amnesty International and African Resources Watch report, "This is What We Die For", for illegal child artisanal labour hire and unsafe operating practices.

Meanwhile, ZDAMWU together with the Centre for Natural Resource Governance (CNRG) and the Anti-Corruption Trust of Southern Africa (ACTSA) have called on the government to act on such issues.

Speaking on behalf of the organisations, Zinhema said they were deeply concerned by the government's lack of action in addressing the increasing number of mining employees dying and getting injured on duty.

"These incidents not only result in the loss of valuable human lives but also inflict immeasurable pain and suffering on affected workers, their families, friends, and communities.

"We observe that, more often than not, mine workers who get injured at work get fired without compensating them for their injuries which sometimes constitute permanent disabilities.

"More disturbing are allegations that the line ministries and other regulatory authorities give a blind eye to these accidents, and the lack of enforcement leads to an escalation of bad labour practices since those responsible enjoy impunity," said Zinhema.

Zinhema said urgent action must be taken to address this growing crisis and ensure that every worker enjoys the right to a safe and healthy working environment.

"It is crucial to recognise that the safety and well-being of employees should be a top priority for both employers and the government. While some progress has been made in improving workplace safety standards, it is evident that more needs to be done to prevent these avoidable tragedies.

Zinhema also urged authorities to facilitate the compensation of all those injured at work as well as compensating the families of all those who would have died during the course and scope of executing their mining duties and responsibilities.

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