A mining firm in Zambia has shelved plans to lay off close to 2, 000 of its workers as part of its cost-saving measure, a senior official said in a statement obtained by Xinhua on Thursday. Konkola Copper Mines (KCM) Plc, a subsidiary of London-listed Vedanta Resources, recently announced that it will lay off 2,000 workers out of its workforce of about 8, 263, citing increasing production costs and low prices of copper on the international market as some of its reasons.
The decision caused a backlash from both the government and the trade unions, with the unions calling on the government to grab the mine from the Indian investors.
But in a statement, Joy Sata, the company's public relations manager, said the company rescinded its decision because of ongoing talks with the government and the trade unions to find a lasting solution.
"KCM wishes to advise that the redundancy program originally proposed by the company has been put off. The company, unions and government are engaging in talks to find a lasting solution," she said. She has since described as 'progressive' the current talks with the government and trade unions, adding that significant progress had been made in identifying other measures that would mitigate the company's financial and business challenges. The company further expressed hope that the discussions would reach a 'win-win situation'. The company has since thanked the mining giant over its move to rescind the decision to lay off the workers, according to state media. Minister of Labor and Social Security Fackson Shamenda said the decision came after a successful meeting he held with the company' s top management.