Tanzania Zambia Railway Fires 1,000 Workers for Striking

KAMPALA, Uganda--In a crackdown targeting an impasse that has paralyzed copper exports from land-locked Zambia, the Tanzania Zambia Railway Authority on Tuesday fired more than 1,000 workers who have been on strike since last week over a pay dispute.

The railway authority, known as Tazara, said the workers went on strike without following proper procedures, rendering their strike illegal.

Tazara has been struggling to meet workers' pay demands in recent years, citing inadequate cash flow.

"Employees that opted to abandon their duties and have been reported as not working [on Monday and Tuesday] have been dismissed, and their services are no longer required," Tazara said.

The railway, jointly owned by the Tanzanian and Zambian governments, operates a 1,860-kilometer-long line, which runs from Tanzania's port city of Dar es Salaam to the heartland of Zambia's vast copper and cobalt mines in the Copperbelt province. Copper mining is the lifeblood of the Zambian economy.

Union officials said the striking workers had not been paid since May. But the railway said the workers refused to negotiate, leaving management only the option of firing them.

The strike has already blocked the transportation of scores of wagons laden with copper and cobalt from Zambia to Dar es Salaam in the past four days. Copper-mining companies in Zambia--such as Vedanta Resources PLC (VED.LN), Glencore Xstrata PLC (GLNCY, GLEN.LN, 0805.HK), First Quantum Minerals Ltd. (FQVLF, FM.T) and China Nonferrous Metals Co. Ltd. (8306.HK)--have increased their investment in a bid to raise output, stretching the country's inadequate infrastructure facilities.

Zambia's copper output is poised to hit up to 1.5 million metric tons by 2015 from around 800,000 tons produced last year.

Write to Nicholas Bariyo at nicholas.bariyo@dowjones.com