Sinomine sued after workers’ salaries allegedly slashed by 80%

The Mineworkers Union of Namibia (MUN) has dragged Sinomine Tsumeb Smelter (Pty) Ltd to the Labour Court, accusing the company of unilaterally slashing employees’ working hours and salaries by up to 80% - with workers earning around N$19 000 reportedly taking home as little as N$3 000.The urgent application, brought by MUN branch chairperson Paulus Heita on behalf of more than 120 workers, seeks an immediate interdict stopping the smelter from continuing with what the union calls “illegal deductions” implemented during the October 2025 pay cycle. The union also wants the company compelled to refund all money that has already been deducted.According to Heita’s founding affidavit, Sinomine issued letters on 19 September 2025 informing employees that their working hours and remuneration would be reduced by up to 50% under section 12(6) of the Labour Act. However, the union says salaries were cut far beyond the legal threshold. Some workers who previously earned around N$19 000 reportedly received wages as low as N$3 000, representing a reduction of more than 80%.Acting unilaterallyHeita argues that no agreement was reached between the company and the union, despite the Recognition and Procedural Agreement requiring negotiations on all issues affecting employees’ wages and working conditions. Instead, the union says Sinomine acted unilaterally while negotiations were still underway.The union warns that the drastic pay reductions have already pushed employees into financial crisis. Many workers are no longer able to pay rent, school transport or medical costs. They risk losing motor vehicles and household goods bought on instalment, face potential eviction and blacklisting, and may even lose their jobs if they cannot afford transport to work. Heita says the harm is irreparable, arguing that no later court order could reverse the financial and social damage workers will suffer in the meantime.The union had already referred a dispute to the Labour Commissioner on 20 October 2025, alleging unilateral changes to employment conditions and unfair labour practices. Under section 51(4) of the Labour Act, once such a dispute is referred, an employer must stop implementing the contested changes until the matter is resolved. MUN argues that Sinomine ignored this legal requirement and continued with the deductions, prompting urgent court action.Heita also links Sinomine’s conduct to the company’s broader restructuring since it acquired the Tsumeb Smelter in 2024. He says the company closed the smelter’s main furnace and shifted focus to recovering valuable materials from historical tailings. Employment contractsMore than 210 workers were pressured into accepting voluntary separation packages, and the company may be attempting to avoid retrenchments because of a three-year no-retrenchment condition imposed by the Namibian Competition Commission when it approved Sinomine’s takeover. According to the union, the “Garden Leave” policy, which reduces employees’ working hours and salaries, is being used to shrink the workforce without formally retrenching.The affidavit cites multiple violations of the Labour Act, including section 12(6), which requires written agreements for extensions beyond three months; section 12 and Chapter 3, which prohibit reducing conditions of employment below legal minimum standards; section 51(4), which bars employers from altering working conditions while a dispute is pending; and section 9, which prevents employers from imposing less favourable conditions than those in Chapter 3. Heita argues that the salary deductions and working-hour reductions breach both the law and workers’ employment contracts, which stipulate an eight-hour workday unless varied in writing and signed by both parties.MUN is requesting that the court interdict Sinomine from continuing the reduced working hours and remuneration, order the company to repay all deductions made in October, and prevent further changes until the dispute before the Labour Commissioner is resolved. The union also seeks costs against the company. It argues that the matter is urgent because each passing day deepens the financial harm experienced by employees.

Sinomine sued after workers’ salaries allegedly slashed by 80%

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Namibian Sun 2026-02-26

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Sinomine sued after workers’ salaries allegedly slashed by 80%

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Namibian Sun 2026-02-26

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