This work examines the structure of pay in the Zambian copper mining industry between 1970 and 1978. It offers evidence on the pattern and movement of pay of selected Zambian and expatriate occupational groupings in the industry and considers the methods and processes employed in pay determination. The study then examines whether movements in differentials which are revealed can be explained by reference to economic or socio-political influences or both. Using concepts of various theories on pay determination in developing countries and of internal labour markets and segmented labour markets, the investigation finds that there were changes in the industry pay structure. Zambian/expatriate pay differentials widened. At the same time the Zambian pay structure remained relatively stable and while there was a narrowing of manual/non-manual differentials, intra- and inter-occupational differentials widened considerably. On the other hand, the expatriate pay structure was volatile with frequent changes in occupational rankings and an overall narrowing of differentials. The investigation concluded that the changes in the pay structure were due to differences in the methods and processes of pay determination, the working of internal labour markets and of segmented labour markets, as well as influences arising from imbalances in the Zambian labour market. These changes have not been to the industry's benefit and have in fact exacerbated earlier pay structure inadequacies; they also affect adversely the functioning of the national pay structure in Zambia. The study concludes with proposals for policy initiatives to deal with the problems inherent in the mining industry's pay structure. The proposals are at two levels, one at industry level and the other at Government level. The industry could remove the differential methods of pay determination involving individual contracts for expatriates and collective bargaining for Zambians. The industry could also eliminate contract terms of employment and make permanent and pensionable employment available to all the workforce. The Government could facilitate these changes by encouraging settlement of expatriates as permanent integrated citizens and not as temporary labour to be dispensed with at the earliest convenient opportunity. The attainment of these objectives would require practical assessment of the likely consequences and the political resolve to implement policies.
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