Namdeb, Workers Union Disagree on Production Holiday Pay

Namdeb and the Mineworkers’ Union of Namibia (MUN), the union that represents many of Namdeb’s employees disagree over the conditions under which workers will go on a three month holiday while the diamond miner stops production, The Namibian reported Wednesday.

Namdeb plans to halt diamond production for three months following the decline in demand for rough diamonds. Namdeb had no sales in January or February.

The miner suggested that workers contribute leave days during the shutdown. The union rejected the offer because most workers used their leave days when production was halted in December, said Oranjemund MUN branch chairman John Ndeutapo, which means they would be forced to take unpaid leave.

Namdeb’s Group External and Corporate Manager, Hilifa Mbako, said the company is asking workers to contribute a maximum of 16 leave days. “The object of the exercise is not leave days, but rather to save fuel and electricity costs in order to conserve cash flow,” he told the newspaper.

“If anyone has not realized the impact of the current economic recession by now, then he or she can forget the future existence of Namdeb,” he warned.