Protracted strike costs Skorpion N$26 million

Home National Protracted strike costs Skorpion N$26 million

Windhoek

Industrial action at the Skorpion Zinc mine is now into its fourth week, despite concerted efforts by the mine’s management to find a lasting solution to the costly labour dispute.

The industrial action, which involves staff working reduced hours, has cost the mine approximately N$26 million in lost production to date.

A media release issued yesterday by Nora Ndopu, corporate affairs manager of Vedanta Resources, owners of the mine, said: “The union has made negotiations difficult by adding further demands each time a solution is in sight.

This behaviour is disappointing and not in the best interests of the employees the union represents.”

“The parties reached an agreement last week, which included a settlement offer of N$13 million payable to all employees over three years, plus a continuous operations allowance increase from 10 percent to 13 percent.

However, the union then added the issue of the company reversing the no work, no pay policy.”

The company maintains employees will not be paid for hours not worked.

The no work, no pay principle is universal and in accordance with labour laws. Management has offered employees an opportunity to recover the lost income through a bonus scheme.

“Management is upholding the principle of no work, no pay for the walkout hours, but has made an offer to all continuous operations employees to recover the loss of earnings during the walkout period by means of a supplementary bonus scheme. This bonus is in addition to the existing bonus scheme, and will run over the next 2.5 months as an enhancement to the current production bonus,” Ndopu quoted Lance Williamson, the acting general manager of Skorpion Zinc, as having said.

“We are disappointed with the union’s actions and the fact that they do not recognise the risk they are placing on the viability of the operation,” Williamson continued in his statement.

It is believed that after working hours yesterday a select small number of concerned employees undertook a peaceful demonstration from their residences to the Tutungeni informal settlement to demonstrate against the company implementing the eight-hour shift cycle.

“One of the outcomes of the union’s actions might be the company implementing an eight- hour shift cycle to replace the current 12-hour shift. The most suitable shift cycle for the Skorpion Zinc mine and refinery is the 12-hour shift, and we believe the majority of employees prefer the 12-hour shift, but they (employees) need to speak up,” said Williamson.

“All stakeholders including the government are very keen to see a speedy resolution and a settlement that is in the best interest of all parties, including the viability of a mine, which is important to the economy.”