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ICEM Namibian Affiliate Succeeds in Making Diamond Polishing Jobs Permanent

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4 September, 2006

The Mineworkers’ Union of Namibia (MUN) has scored an important victory for fixed-term contract workers at a diamond-cutting and polishing factory in the capital city of Windhoek. Last week, ICEM affiliate MUN successfully completed negotiations with the Namibian managers of Israel-based Lev Leviev Diamonds LLD. The agreement will make 356 mainly young workers into permanent employees, complete with rights and benefits.

“Workers are happy about the fact they have representation,” MUN General Secretary Joseph Hengari told the ICEM. “There have been many shortcomings in work procedures since this factory started and our duty now is to bring these technicalities to a close to the benefit of workers.”

In late July, about a quarter of the workers at the Lev Leviev enterprise struck after they were given an ultimatum by managers to sign new 12-month-long individual contracts for the third time. Strike leaders contacted the MUN, whose intervention ended the strike and began collective negotiations with the company.

MUN’s involvement also proves beneficial to the company, which had been operating without knowledge of local laws, without a functioning human resources department, and without a proper method of salary calculations. In fact, one major grievance that led to the 27 July strike was the fact that individual contracts disqualified the workers from getting a basic salary unless they reached certain production quotas.

MUN will soon become the official bargaining representative at the Lev Leviev plant. During two weeks of intense negotiations in August that covered a number of employment issues including salary and remuneration, MUN and the company agreed to make the 356 workers permanent effective 1 September. All 356 applied for membership to the MUN. In addition, another 56 were classified as trainees, but will progress from that status to permanent workers in the near future. The company also says it intends to bring another 120 trainees into the plant, with the aim of having a total of over 500 permanent workers.

The diamond-cutting and polishing operation opened in mid-2004 and has a capacity to produce 25,000 carats of polished stones monthly. The factory currently is dependent on rough stones mined from another Lev Leviev enterprise, the Sakawa Mining Corporation of The Netherlands, located in offshore areas of southern Namibia. But the company is attempting to convince the Namdeb Diamond Corporation, the country’s joint venture with DeBeers, to supply rough stones to the factory in order to fully promote local beneficiation of Namibian diamonds.