Mineworkers’ union, Finestar Jewellery agree to halt retrenchments

The Mineworkers’ Union of Namibia (MUN) and Finestar Jewellery & Diamond Namibia on Friday agreed to stop all retrenchments, including voluntary separation exercises with immediate effect.

MUN representative Sakaria Simon says companies are using voluntary separation exercises to circumvent their obligations under section 34 of the Labour Act.

“MUN has noted with concern and consistently condemned these unilateral voluntary separation schemes, which are nothing more than a strategy to circumvent the clear obligations of the Labour Act and strip employees of their hard-won protections,” says Simon.

Finestar Jewellery initially intended to retrench 25 employees during April and May. Negotiations between the company and union failed in terms of section 34 of the Labour Act.

This resulted in the matter being referred to the Office of the Labour Commissioner by the union.

The company’s management then initiated a voluntary separation scheme.

While awaiting for a date for conciliation proceedings, the parties convened a meeting in which the agreement was reached.

Finestar Jewellery inaugurated its diamond manufacturing factory in Windhoek in 2022.

It carries out all the stages of diamond manufacturing – from planning to polishing diamonds primarily mined in Namibia.

Finestar Jewellery factory manager Ghanshyam Baldaniya says the company has agreed to suspend all retrenchment processes, whether forced or voluntary with immediate effect.

Baldaniya says the suspension shall remain in force until the parties, through mutual dialogue, jointly agree otherwise.

Simon says the union has undertaken to withdraw the labour dispute lodged under case number CRWK566-25 with the labour commissioner.

Simon says the parties commit themselves to ongoing engagement in good faith, through structured dialogue with the aim of resolving workplace challenges amicably.

“Both parties agree to explore all alternatives to retrenchments, including redeployment, training, reskilling and voluntary negotiated arrangements,” says Simon.

This is the second voluntary separation exercise which was halted in 2025 due to MUN’s intervention to protect workers’ rights.

The first was Sinomine Tsumeb Smelter.

Sinomine announced in June that it would temporarily suspend copper smelting operations, and place the plant under care and maintenance due to challenging global market conditions.

Sinomine chief executive Logan Lou at the time said increased smelting capacity in major copper-producing regions has led to global overcapacity, putting pressure on copper smelters.

To reduce costs, a voluntary separation process would be introduced to cut about 40% of the 650 workers, Lou had said.

Simon further says these achievements reflect the collective power of organised workers to hold employers accountable.

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