MUN asks competition commission to halt job losses at Sinomine

The Mineworkers Union of Namibia (MUN) has asked the Namibia Competition Commission (NaCC) to issue a directive suspending the voluntary separation process proposed at Sinomine Copper Smelter at Tsumeb in the Otjikoto region.

MUN opposes the voluntary separation process proposed at Sinomine, arguing that it is a breach of conditions imposed by the NaCC when Sinomine took over from Dundee Precious Metals in a merger last August.

MUN general secretary George Ampweya has asked the commission to hold off on a voluntary separation process until it can be determined whether the process amounts to a breach of the approved transaction conditions.

Authorising the merger last year, NaCC set a number of conditions, including that there be no retrenchments of Namibian employees as a result of the merger for three years after its conclusion.

“From the perspective of the union and affected employees, the current situation bears the hallmarks of a disguised retrenchment implemented in a manner that circumvents both the letter and spirit of the conditions set by your commission,” says Ampweya.

The general secretary says key indicators include direct and indirect pressure placed on employees to consider the separation package in a context of reduced morale, uncertainty of job security, and no transparent consultations with union representatives.

NaCC spokesperson Diina Gowases says the commission will respond in due time as they are busy formalising a response.

Sinomine Copper Smelter last week Thursday announced that it will temporarily suspend copper smelting operations and place the plant under care and maintenance due to challenging global market conditions.

Company spokesperson Alina Garises says the company aims to reduce overall costs by 30 to 40% and as a part of the restructuring process, a voluntary separation programme will be introduced for employees. The target is 40% out of 650 employees at the smelter.

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