SWAKOPMUND: The industrial action which has closed down production at the Karibib Navachab Gold Mine (NGM), is not showing signs of resolution. According to the president of the Mineworkers Union of Namibia (MUN), John Ndeutepo, the workers will only return back to their working stations once the company reports to MUN with a strike resolution offer.
He also said that whilst discussions are on-going, MUN will do research to present the company with a different proposal once negotiations opens up.

In addition workers are also accusing NGM management of mismanagement. “The workers are alleging that the industrial action resulted due to the mine being mismanaged and the workers pulling the neglect there off. The company poached the benefits from the workers to make-up for the loss,” Ndeutapo explained to NAMPA via a telephone interview.

However, according to Johan Coetzee, the Managing Director of the mine, responded on these allegations by stating that, in the annual salary surveys, Navachab compared, they are paying above average to all its employees.

“This is supported by the results of annual wage surveys carried out in the mining industry in Namibia. In addition, Navachab continues to be the only mine in Namibia paying 100% of the medical aid contribution for its employees and their dependents. It also pays 100% of the school fees for the children of its employees attending the Karibib Private School. The company also provides free transport to and from work,” he explained to NAMPA.

Coetzee also remains mum with regard to the total amount of revenue lost as a result of the industrial action. “The financial implications on the company will only be assessed at the end of the strike. We are currently concentrating all our efforts to seek a solution,” he said.

According to a local newspaper, the estimated value NGM stands to lose daily is between N.dollars 2.5 million and N.dollars 3 million. According to the estimations for a week, the mine has already lost N.dollars 21 million as a result of production coming to a halt.

As to why the company is not giving into the demands of the Union, Coetzee informed NAMPA that, in order to determine an affordable wage increase, a number of factors are taken into consideration. These factors include benchmarking within the industry, company performance, the inflation rate as well as current business performance, which for NGM was 23 per cent below target in 2011.

The strike came in the wake of a refusal by NGM to accept demands made by the workers through the Mineworkers Union of Namibia (MUN) for an increase of 12 per cent on their basic wages.
NGM rejected the offer and stated that they are only able to give the workers an increase of seven per cent, after initially offering an eight per cent increase which was also declined by the union.

The mine is sticking to its offer of a seven per cent increase in basic wages, a ten per cent increase in housing allowances (both to be backdated to January 1 2012), and a one-off cash payment of N.dollars 800.

MUN has however in the meantime lowered its initial demand of a 12 per cent increase to 10 per cent increase.
Workers at the mine started striking since last Friday.
(edited)SWAKOPMUND, 20 JUL (NAMPA) – The industrial action that has stopped production at the Karibib Navachab Gold Mine (NGM) is still on, one week since it commenced. According Mineworkers Union of Namibia (MUN) president John Ndeutapo, the workers will only return to their work stations once the company reports to MUN with a strike resolution offer.

He told Nampa via telephone on Friday that whilst discussions are ongoing, the MUN will do research on a different proposal to present to management once negotiations start. Apart from the demand for salary increments, the workers are accusing the NGM management of mismanagement.

“The workers are alleging that the industrial action resulted due to the mine being mismanaged, and the workers pulling the neglect thereof. The company poached the benefits from the workers to make up for the loss,” Ndeutapo explained.

On his part, Johan Coetzee, the managing director of the mine, responded by stating that Navachab pays its employees above average salaries. “This is supported by the results of annual wage surveys carried out in the mining industry in Namibia.

In addition, Navachab continues to be the only mine in Namibia paying 100 per cent of the medical aid contributions for its employees and their dependents,” he told Nampa on Friday. Coetzee added that the mine also pays 100 per cent of the school fees for the children of its employees attending the Karibib Private School, while also providing free transport to and from work.

He, however, remained mum with regards to the total amount of revenue lost as a result of the industrial action. “The financial implications on the company will only be assessed at the end of the strike. We are currently concentrating all our efforts to seek a solution,” is all he was prepared to say.
According to a local newspaper, the estimated value NGM stands to lose daily is between N.dollars 2.5 million and N.dollars 3 million.

According to the estimations, the mine has already lost about N.dollars 21 million for the week production has come to a halt. As to why the company is not giving in to the demands of the union, Coetzee said that in order to determine an affordable wage increase, a number of factors are taken into consideration.

These factors include benchmarking within the industry, company performance, the inflation rate, as well as current business performances, which for NGM was 23 per cent below target in 2011, he explained.

The strike came in the wake of a refusal by NGM to accept demands made by the workers through the MUN for an increase of 12 per cent on their basic wages. NGM rejected the offer and stated that they are only able to give the workers an increase of seven per cent, after initially offering an eight per cent increase which was also declined by the union.

The mine is sticking to its offer of a seven per cent increase in basic wages, a 10 per cent increase in housing allowances (both to be backdated to January 2012), and a once-off cash payment of N.dollars 800. MUN has, in the meantime, lowered its initial demand of a 12 per cent increase to 10 per cent.