Indian company underpaying workers

Brenna Matendere

Mutoko—Suraj Mine (Pvt) Ltd, trading as JR Mine, has come under fire for underpaying its workers, in violation of Zimbabwean law.

The company was set up in 2004 and currently operates in Mutawatawa in Mashonaland East province, some 176 kilometres from Harare.

Its directors are Surendra Yadav, Didcas Ferrrirre and Yousuf Muhammad, while Palmar Pramesh is the managing director.

For 20 years, the company with a current workforce of 200 has been mopping up the gold in the area using heap-leaching and vat-leaching.

Suraj has also been milling gold ore for numerous clients but workers interviewed by NewsHub during this investigation bitterly complained that the company was poorly rewarding them.

Wages and salaries in Zimbabwe are mostly regulated under respective national employment councils (NEC).

On 18 June 2024, the NEC for mining circulated circular number NEC6135 that updated sector workers on the minimum wages to be paid to them January December 2024.

The rates had been agreed upon by the Associated Mine Workers Union of Zimbabwe, the Chamber of Mines of Zimbabwe and ministry of Labour and Social Services, which subsequently registered and published a relevant statutory instrument 152.

It has emerged that Suraj is paying its workers below the stipulated amounts and has not request to be exempted from the mandatory minimum wages and salaries that are stipulated in the below schedule.

According to insiders, Suraj produces at least 10kgs of gold a week which it sells and generates foreign currency.

As at 10 September, the average price of one kg of gold on world market was US$80, 000, meaning the company is making about US$800 000 per week on gold sales alone.

However investigations carried by this publication show that the gold mining company is paying workers below these rates, therefore violating their labour rights.

Under the agreed schedule, a grade one worker is supposed to get US$350 in the mining sector but a random payslip shows that Suraj is paying US$280.

Another payslip shows that a Grade 6 worker who must be earning US$394 is getting US$356 while a Grade 5 worker is being paid US$350 at Suraj instead of the gazetted US$376.

These variances repeat in all the grades, up Grade 13.

A worker who spoke on condition of anonymity said there were more serious cases of labour injustices at Suraj mine.

“The company does not pay for overtimes. We work Saturdays, Sundays and on public holidays but there is no money paid to the worker for that. While the labour law say a worker shall be paid the 13 cheque, commonly known as bonus, at Suraj there is nothing like that,” said the worker.

In the past six months, Suraj management suspended five workers for attempting to set up a company workers’ committee, which is provided for under the Labour Act.

The workers said they had been pushed to set up the committee by repeated violations of employee rights.

The suspended workers have been identified as Peter Mareya, Kudakwashe Makoni, Lovemore Kanjanda, Torosco Nyangasi and Ken Kamunhukamwe.

“No other worker dares to lift a finger and challenge the management of the company over labour injustices. That is how serious our situation is,” said another worker.

“We had the case of one guy who was a guard. He was working 12 hours but being paid for only eight hours,” he added.

The named security detail has since left the company due to frustration.

When contacted for comment, Suraj director, Yousuf Muhammad, avoided directly responding to the allegations.

“I do not respond to random calls. You see, as a journalist you can’t just pick a phone and ask me about such issues. I will make consultations with our human resources manager and then come back to you,” he said.

He, however, did not stick to his promise and never came back with the feedback.

A message sent to another director, Surendra Yadav via WhatsApp, blue-ticked but was not responded to.

A follow up through a direct call did not succeed as the line was not getting through.

Labour lawyer, Edzai Edson Matika of Gwisai and Matika Legal Practitioners, said without an exemption, there was no acceptable excuse for Suraj to underpay its workers because it had not been declared insolvent.

“If the employer has not applied for an exemption from the NEC, the employer is bound to pay according to the minimum rates set through collective bargaining.

“So, if the employer fails to pay like that, two legal issues arise. Number 1, it’s an unfair labour act to pay below minimum rates. Number two, it also constitutes a criminal offence where a representative of the employer can be arrested and be sanctioned for not paying in accordance with the rates.

“Section 6, sub-section 1 (a) of the Labour Act says no employer shall pay any employee a wage which is lower than the specified fair labour cost.

“If an employer pays lower than what is set, in collective bargaining agreement, its violation of this section. So when one violates this section, the law says that the person shall be guilty of an offence and liable to a fine not exceeding level seven or imprisonment not exceeding two years or both such a fine and imprisonment,” he said.

That punishment is targeted at the representative of the employer.

The relevant NEC has the power to deal with errant employers and aggrieved employees can claim their balances arising from the underpayment.

“They can be paid as back pays if they approach the designated agent at the NEC. Another remedy is to report the employer to the police, citing Section 6 (2) of the Labour Act which makes it a criminal offense to underpay an employee,” said Matika.