Reuters reported that Glencore International's Mopani Copper Mines in Zambia has agreed 17% pay rise with unions almost triple the inflation rate.

Mr Goodwell Kaluba general secretary of Zambia's National Union of Mine and Allied Workers said that "We signed for a 17 percent pay rise last evening. It may not be the best given that people's expectations were high after the change of government but this was the highest we could get."

Mr Kaluba said that some workers were not happy with the deal but urged them to accept the agreement which should avert any industrial action. Officials at Mopani were not immediately available for comment.

Mr Michael Sata president of Zambia who swept to power last year on the back of promises to spread the benefits of Zambia's mineral wealth asked labor unions to keep salary demands close to inflation which slowed to 6.4% in January.

He also told cabinet ministers not to interfere in salary negotiations, saying that could scare foreigners looking to invest in Africa's biggest copper producer.

Mr Sata's support base is with the working class in Lusaka and the northern Copperbelt. Before last year's election he frequently attacked foreign investment, most notably from China although has toned down the rhetoric since coming to power.

(Sourced from Reuters)