SWAKOPMUND – Xinfeng Investment, the Chinese company that mines Lithium near Uis, has said the ongoing court case has had a negative impact on their operations, resulting in them not renewing the contracts of at least 20 workers.
These workers’ employment contracts will be terminated on 20 September this year.
The company responded on Wednesday to allegations that they targeted employees following a recent visit by Benita Imbamba, chairperson of the Erongo Regional Council.
After the visit, Imbamba commented that the company had made no improvements to the living conditions of the employees and had subjected workers to unfair labour practices.
“We are not going to allow this to continue. I will leave no stone unturned and will take this up with the highest authority. I will not remain silent any longer,” Imbamba expressed in frustration.
Xinfeng spokesperson Aqisha Jooste responded that the workers were not victimised, adding that they chose not to renew their contracts after the mines ministry halted their Omaruru mining operations and subsequently cancelled their mining licence.
“The ongoing court matter has resulted in a lot of uncertainty. Xinfeng is also currently not permitted to export any of its stockpiles of lithium. Our priority now is the construction of our lithium processing plant. Despite construction usually taking up to three years, we aim to complete the plant by the first quarter of next year (April 2024). The decision to not renew employment contracts should be viewed in this context,” explained Jooste.
In June this year, Xinfeng emerged victorious in its battle with mines minister Tom Alweendo, who approached the court to revoke his decision to grant Xinfeng licence ML 243 in the Daures constituency on 6 September 2022.
High Court judge Ramon Maasdorp granted the mine an interdict to stop Alweendo from implementing a decision he made on 28 April to revoke the licence.
Maasdorp found that although the minister proved prima facie that Xinfeng was dishonest in its application for a mining licence, he found that the minister did not have the right to cancel or revoke the licence unilaterally.
Alweendo has a counter-suit for the court to declare his decision to grant the licence as a nullity.
Living conditions
Regarding living conditions, Jooste stated that some renovations had taken place at the mine in response to workforce dissatisfaction. These concerns were addressed in a meaningful and sustainable manner, she said.
“Key enhancements include modern sanitation facilities, and revamped toilet and shower facilities that provide comfortable and hygienic spaces for our employees to refresh and relax after their shifts. These facilities also ensure employee privacy. Additionally, we have installed two large geysers to provide hot water at all times,” she elaborated.
Furthermore, they have cleaned the kitchen and installed a new water point for easy access, eliminating previous inconveniences.
“We acknowledge that there’s always room for improvement in our approach to employee relations. We are open to new ways of enhancing communication and ensuring our employees’ interests are well-represented and valued.”
Bargaining rights
Jooste then pointed to a dispute regarding bargaining rights for employee representation, as there is no consensus on which union should represent their employees.
Currently, both the Mineworkers Union of Namibia (MUN) and the Revolutionary Union (RU) claim to have 50+1 representation and want to be the exclusive bargaining agents.
“We hope for a speedy resolution to address employees’ rights and interests,” Jooste stated.
Meanwhile, MUN secretary for the western region Filleppus Ampweya said they have achieved 51% membership among the employees, allowing the union to represent them during this unsettling process.
According to him, the impending job losses affect at least 32 employees, and not about 20 as the company claims. They already received termination letters from Longfire Investment.
In a letter seen by New Era, Ampweya questions the legality of the employment terminations, pointing out that the company had not referenced the complete Section 34 of the Labour Act, which deals with dismissals.
“It appears that your client did not find it appropriate to quote the provisions of Section 34 of the Namibian Labour Act. While your client has failed to provide any fair reason for the planned dismissals, it has consequently denied MUN an opportunity to engage on the intended dismissals, reasons for workforce reduction and perhaps more importantly, the criteria used to select the 32 employees out of the 143 employees. This excludes the 22 Chinese nationals currently employed by your client,” the letter to Longfire’s legal representative states. – edeklerk@nepc.com.na