The Mineworkers Union of Namibia and Basil Read Namibia have agreed that the mine will only retrench 41 workers, instead of the initial 100.
The effective date of termination of employment for the 41 affected
employees will be 31 October 2018. The agreed retrenchment package will include pension, pro-rata 13th cheque, payment of accrued leave days, three months remuneration inclusive of notice pay provision and pro-rata severeance pay for each completed 12 months of service.
These details are contained in the retrenchment agreement between Basil Read Mining Namibia and MUN.
The agreement states that the retrenched workers must get preference for employment whenever opportunities arise in the business.
“The company found itself in a negative situation that required urgent business decision when it was served with a notice of BCM reduction from its client in June 2018, reducing the production volumes from 850 BCM to 510 BCM with immediate effect,” reads the agreement.
The company later notified the union of its decision for a collective termination of employment at its Tschudi Mine. At the time the mine wanted to retrench between 80 to 100 workers.
Several engagements between the company and MUN ensued which resulted in the company reaching out to the Office of the Labour Commissioner in September after failure to reach common grounds with the union.
According to the agreement, The Office of the Labour Commissioner set down a conciliation hearing that took place on 19 October and an agreement was reached between the company and MUN on the selection criteria and retrenchment packages.
The parties subsequently entered into an agreement that reduced the number of employees to be retrenched from 100 to 41.
The agreement also states that the company will maintain the four shift pattern of eight hours per shift until 31 July 2019.