Jan 21 is D-day for Namdeb’s job cut plan

WEDNESDAY January 21 will be the last day for Namdeb employees to apply for “voluntary separation” under a plan to reduce labour costs at Namibia’s biggest diamond firm.

Namdeb says the process, announced in November, is a response to the strengthening rand, which has severely dented the company’s export earnings. In a written response to questions, Namdeb said on Thursday that there had been no formal applications to date.However, according to information from a help desk set up to advise staff members, “employees have shown great interest”.These enquiries had come from employees in the support services division, including the Namdeb hospital at Oranjemund, the finance and administration unit, human resources, security, and engineering, the company said.Commenting on whether there might be further job cuts, either voluntary or compulsory, in future, the company said “future decisions will be based on company performance and affected by issues such as the world economy, markets and exchange rates”.”In accordance with the agreements signed between Namdeb and the MUN [Mineworkers Union of Namibia], ongoing consultations are taking place on the voluntary separation exercise,” it said.Namdeb said it would only be able to reveal the cost of the exercise after formal applications close.It has offered workers three weeks’ remuneration for each completed year of service up to 10 years, and two weeks’ remuneration for every completed year thereafter.Namdeb has 3 200 workers at the moment.De Beers, which owns 50 per cent of Namdeb shares, recently said it had cut 442 staff – centred on its Johannesburg headquarters – as part of a voluntary separation process sparked by the strength of the rand.The other 50 per cent stake in Namdeb is owned by the Namibian Government.The rand increased in value by 28 per cent against the US dollar in 2003, meaning exporters, who sell their products in US dollars, earn fewer rands for every US dollar in sales revenue.In a written response to questions, Namdeb said on Thursday that there had been no formal applications to date. However, according to information from a help desk set up to advise staff members, “employees have shown great interest”. These enquiries had come from employees in the support services division, including the Namdeb hospital at Oranjemund, the finance and administration unit, human resources, security, and engineering, the company said. Commenting on whether there might be further job cuts, either voluntary or compulsory, in future, the company said “future decisions will be based on company performance and affected by issues such as the world economy, markets and exchange rates”. “In accordance with the agreements signed between Namdeb and the MUN [Mineworkers Union of Namibia], ongoing consultations are taking place on the voluntary separation exercise,” it said. Namdeb said it would only be able to reveal the cost of the exercise after formal applications close. It has offered workers three weeks’ remuneration for each completed year of service up to 10 years, and two weeks’ remuneration for every completed year thereafter. Namdeb has 3 200 workers at the moment. De Beers, which owns 50 per cent of Namdeb shares, recently said it had cut 442 staff – centred on its Johannesburg headquarters – as part of a voluntary separation process sparked by the strength of the rand. The other 50 per cent stake in Namdeb is owned by the Namibian Government. The rand increased in value by 28 per cent against the US dollar in 2003, meaning exporters, who sell their products in US dollars, earn fewer rands for every US dollar in sales revenue.