NAMIBIA’S mining sector is facing scrutiny over its increasing use of contractors and temporary workers to perform work that is traditionally done by permanent employees.
The Mineworkers Union of Namibia says mining companies are using the method to lower labour and operational costs to make profits.
Union secretary general George Ampweya warned that the cost saving mechanisms could come at the expense of workers’ salaries, job security, social protection and the economy.
“This practice has contributed to the erosion of decent work conditions in the form of reduced wages and job security. It has led to a decline in salaries for outsourced workers, adversely affecting their economic security and well-being,” he said yesterday.
Ampweya said the industry cannot be considered successful if workers are living with insecurity and instability.
“Our position is that outsourcing must be regulated and not allowed to become an escape route from permanent employment and collective bargaining. We want equal pay and comparable benefits for work of equal value and full union representation and collective-bargaining rights for outsourced workers.”
He said if the trajectory continues, Namibia risks having a mining industry that grows economically while decent employment shrinks.
The practice has faced scrutiny from the parliamentary standing committee on poverty eradication, labour and industrial relations, which recently conducted oversight visits to mining operations in Oshikoto, Otjozondjupa, Erongo, ||Kharas and Khomas regions. The committee in its findings says the practice creates a “dual labour market”, and introduces cheaper contract labour.
The committee reported that some mining companies have retrenched workers or used voluntary separation schemes before hiring subcontractors to perform similar duties at lower wages.
Committee chairperson Justina Jonas yesterday said evidence from workers’ representatives and affected workers has proven the allegations. She says the retrenched workers were subsequently returned to the same work through contractors
“The committee also heard concerns that subcontracted workers generally experienced less favourable conditions, including lower wages and benefits, less job security and weaker access to trade-union representation,” she says.
She says the committee identified concerns around insufficient monitoring and enforcement of employment conditions, including inadequate labour inspections and monitoring of subcontracted workers, insufficient oversight of compliance with wages, working hours, overtime, leave and other statutory conditions.
Jonas warns that outsourcing could undermine permanent employment, workers’ rights and meaningful trade-union representation.
The committee visited mining operations of firms such as B2 Gold, Ohorongo Cement Plant, Cheetah Cement, Sinomine Tsumeb Smelter, Rössing Uranium Mine, Navachab Mine, Namdeb, Rosh Pinah Zinc and others.
Jonas says they do not recommend all subcontracting to automatically be prohibited, but that outsourcing should not be used to undermine permanent employment, workers’ rights, decent wages, social protection or collective bargaining.
Labour analyst Sydwill Scholtz warns that employers should be cautious when using temporary employment arrangements, especially where the nature of the work suggests that a permanent position is required. He says seasonal employment could be justified where an employer determines that a position does not warrant permanent occupancy.
However, the Ministry of Justice and Labour Relations says outsourcing workers does not exempt employers from compliance with labour legislation, as such workers are also entitled to similar conditions of employment as prescribed by the law.
Ministry spokesperson Maria Hedimbi says the ministry has a statutory mandate of enforcing labour laws in all sectors, including mining and workers employed through private employment agencies and/or subcontracting arrangements.
“The ministry’s labour inspectors investigate labour practices in terms of conditions of employment and occupational safety and health,” she said yesterday.
