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Navachab workers want golden handshakes
By: ADAM HARTMANWORKERS at the Navachab gold mine at Karibib are demanding their ‘years of service’ payment before the mine is sold after AngloGold Ashanti recently announced plans to dispose of the mine.
Mine General Manager, Johan Coetzee, announced that the company had decided to sell its 100 percent interest in AngloGold Ashanti Namibia (Navachab) – one of the smallest assets in AngloGold’s portfolio.
“Navachab is likely to be better placed for optimal development (which will benefit all stakeholders) if owned by a company where it represents a greater proportion of that company’s asset portfolio,” he explained.
Although Navachab is for sale as a ‘going concern’ (meaning existing employment contracts and agreements remain in force) a group of ‘concerned workers’ are demanding their ‘years of service’ be paid out.
‘Years of service’ is paid during retrenchment, or when a company changes hands.
There are currently 417 permanent and 471 contract employees at the mine, some of whom have been working at the mine since 1989 when production started. The concerned group apparently comprises 85 percent of the Mineworkers Union of Namibia’s (MUN) bargaining unit.
A source explained that an agreement had been reached between the workers and AngloGold that an equivalent of three weeks’ salary would be paid for every year as part of the years of service package.
“We have no problem with the mine being sold. Our concern is that if AngloGold can’t pay us, how will the new owner that ‘buys’ us and maybe sees they are not making profit, pay us [according to the agreement]?” the source asked.
He said, with regards to the going concern, the company makes reference to the Labour Act which stipulates that everything will be carried over to the new owner. The Act however does not stop the workers from asking for their ‘years of service’ pay.
“Our pension is safely invested with Old Mutual but there is no information about where the ‘years of service’ money is. How would that be paid over to the new owner?” he asked.
He said that if the workers do not get their money, the new owners will not gain access to the mine.
Albertus Noariseb, MUN Shop Steward at Navachab acknowledged that the workers want to know about their future after the company is sold.
“There are still issues the workers are unhappy about but these will be sorted out once we know who the buyers are,” he said.
A meeting that was supposed to take place between the MUN and its members at Navachab on Wednesday was postponed because not everyone who was supposed to attend was available.
“We wanted to hear the concerns and have a unified voice before we meet the company,” said MUN president Ismael Kasuto.
He said that although the concerned group was not legitimate (in terms of the MUN constitution), the union is willing to allow them to air their concerns and see if they could be included in a future bargaining process with the company.
“We are a democratic institution and need to hear what is said; it needs to be a collective effort. Nobody should be left out,” said Kasuto.
Bidders for Navachab have been shortlisted and the bidding phase ends on 10 June.
“There is no certainty currently, that the transaction will be concluded. Should it not be concluded, AngloGold will retain ownership of Navachab and continue operating the mine,” Coetzee said.
However the process is expected to be wrapped up by the end of this year.
Leake Hangala, Chairman of the Board of B2Gold Namibia said his company put in an offer for Navachab but he was not prepared to say more.
B2Gold Namibia is a subsidiary of the B2Gold Corporation based in Canada, and recently started construction at its Otjikoto gold mine between Otjiwarongo and Otavi.
