Protracted Skorpion negotiations concluded
The protracted labour negotiations between Skorpion Zinc and the Mineworkers Union of Namibia (MUN) were successfully concluded on Friday.
The parties agreed on a two-year wage deal which will result in no salary increases for the 2017-2018 financial year, and an inflation-based increase for the 2018-2019 financial year.
As a result, Skorpion will now lay off only 43 employees instead of the 278 it initially planned to retrench. Skorpion will retain 192 employees, who will be seconded to Basil Read Namibia, while 22 employees will be absorbed elsewhere in Skorpion.
“The conclusion of this redundancy agreement is part of a Skorpion Zinc narrative which is premised on the extension of the life of mine. The project will create an additional 170 jobs through Basil Read. This has extended the life of mine for another three years, providing much-needed certainty for our employees and community,” said Skorpion Zinc general manager Irvin Simataa.
MUN acting president Desley Somseb was very happy about the outcome of the negotiations. “A very important milestone has been reached and we have demonstrated that Namibia comes first. We have sacrificed salary increases for the next two years to allow the expansion process to continue. It brings a stable environment to our country.”
Minister of mines and energy Obeth Kandjoze had described the negotiations as very challenging. “It was a very willing resolution that resolved to reach an agreement. The four and a half days of negotiating was very difficult,” he said.
As part of the restructuring process, Skorpion Zinc general manager Irvin Simataa explained that Skorpion would have to mine a new ore body, which lay deeper than the one currently being mined. The existing ore body and current mine, Pit 103, is due to be depleted by June and Skorpion would need to start stripping away as much as 72 million tonnes of waste to access Pit 112 as soon as possible to reach the new ore body.
“Our fleet is inappropriate to access Pit 112. There is definitely a need to restructure; the business decision has been taken. The urgency of the restructuring cannot be overemphasised. If we do not start in the next three months, the validity of this project will be in jeopardy and 1 500 people will definitely be jobless,” said Simataa.
In an email sent to Skorpion Zinc staff members before news of the pending retrenchments broke, Simataa informed them of the imminent closure of the mine and the need to restructure.
“To ensure business continuity and prevent mine closure by June 2017, the company's best alternative is to restructure and implement initiatives intended at extending the life of the mine. The best economic and most sensible alternative considered is the outsourcing of our mining operation to a third party with an adequate and appropriate heavy mining equipment and capability to mine large quantities of waste economically within the timeframe to prevent refinery and mine closure. This has become unavoidable. A total of 278 employees within the mining department will be affected,” said Simataa.
OGONE TLHAGE
The parties agreed on a two-year wage deal which will result in no salary increases for the 2017-2018 financial year, and an inflation-based increase for the 2018-2019 financial year.
As a result, Skorpion will now lay off only 43 employees instead of the 278 it initially planned to retrench. Skorpion will retain 192 employees, who will be seconded to Basil Read Namibia, while 22 employees will be absorbed elsewhere in Skorpion.
“The conclusion of this redundancy agreement is part of a Skorpion Zinc narrative which is premised on the extension of the life of mine. The project will create an additional 170 jobs through Basil Read. This has extended the life of mine for another three years, providing much-needed certainty for our employees and community,” said Skorpion Zinc general manager Irvin Simataa.
MUN acting president Desley Somseb was very happy about the outcome of the negotiations. “A very important milestone has been reached and we have demonstrated that Namibia comes first. We have sacrificed salary increases for the next two years to allow the expansion process to continue. It brings a stable environment to our country.”
Minister of mines and energy Obeth Kandjoze had described the negotiations as very challenging. “It was a very willing resolution that resolved to reach an agreement. The four and a half days of negotiating was very difficult,” he said.
As part of the restructuring process, Skorpion Zinc general manager Irvin Simataa explained that Skorpion would have to mine a new ore body, which lay deeper than the one currently being mined. The existing ore body and current mine, Pit 103, is due to be depleted by June and Skorpion would need to start stripping away as much as 72 million tonnes of waste to access Pit 112 as soon as possible to reach the new ore body.
“Our fleet is inappropriate to access Pit 112. There is definitely a need to restructure; the business decision has been taken. The urgency of the restructuring cannot be overemphasised. If we do not start in the next three months, the validity of this project will be in jeopardy and 1 500 people will definitely be jobless,” said Simataa.
In an email sent to Skorpion Zinc staff members before news of the pending retrenchments broke, Simataa informed them of the imminent closure of the mine and the need to restructure.
“To ensure business continuity and prevent mine closure by June 2017, the company's best alternative is to restructure and implement initiatives intended at extending the life of the mine. The best economic and most sensible alternative considered is the outsourcing of our mining operation to a third party with an adequate and appropriate heavy mining equipment and capability to mine large quantities of waste economically within the timeframe to prevent refinery and mine closure. This has become unavoidable. A total of 278 employees within the mining department will be affected,” said Simataa.
OGONE TLHAGE
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