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19 May, 2008
The ICEM affiliate Mineworkers’ Union of Namibia (MUN) and management of Skorpion Zinc, owned by AngloAmerican, are expected to conclude negotiations today, ending a paralyzing 11-day strike that has affected global zinc markets.
According to MUN President Andries Eiseb, the two sides exchanged proposals over the weekend, and spent the entire day on Sunday, 18 May, analysing the proposals. Further review is expected today, and the agreement is expected to be submitted to striking miners either late today or tomorrow.
“There is the intent by both parties now to amicably settle the dispute and we expect conclusion today,” said Eiseb, who helped present the union’s proposal to management at the mine and smelting operation near Rosh Pinah in southwestern Namibia.
Salary agreement came late last week, when the union and management agreed on a 12% wage increase for all 680 miners. The major stumbling block in weekend negotiations was related to the company’s desire for continuous operations, and the needed Labour Ministry exemption for that to occur. The issue of continuous operations also included the matter of adequate compensation.
MUN agreed to support application for the exemption, and Skorpion must now compensate workers at time-and-a-half for all overtime, pending outcome of a court case. In a 2004 labour agreement, MUN won double-time for Sunday and public holiday work and that will remain intact. The overtime issue became complicated in negotiations due to the pending court case.
Other issues that were resolved to the benefit of workers include housing allowances and company transport. The housing allowance was increased to N$1,700 per month, while MUN won a guarantee that the company will provide transport to the capital city of Windhoek, some 650 kilometres from the mine. Previously, transport was only granted to Keetmanshoop, a distance of 200 kilometres.
Miners at Skorpion work seven-day on, seven-day off rotations.
The ICEM affiliate Mineworkers’ Union of Namibia (MUN) and management of Skorpion Zinc, owned by AngloAmerican, are expected to conclude negotiations today, ending a paralyzing 11-day strike that has affected global zinc markets.
According to MUN President Andries Eiseb, the two sides exchanged proposals over the weekend, and spent the entire day on Sunday, 18 May, analysing the proposals. Further review is expected today, and the agreement is expected to be submitted to striking miners either late today or tomorrow.
“There is the intent by both parties now to amicably settle the dispute and we expect conclusion today,” said Eiseb, who helped present the union’s proposal to management at the mine and smelting operation near Rosh Pinah in southwestern Namibia.
Salary agreement came late last week, when the union and management agreed on a 12% wage increase for all 680 miners. The major stumbling block in weekend negotiations was related to the company’s desire for continuous operations, and the needed Labour Ministry exemption for that to occur. The issue of continuous operations also included the matter of adequate compensation.
MUN agreed to support application for the exemption, and Skorpion must now compensate workers at time-and-a-half for all overtime, pending outcome of a court case. In a 2004 labour agreement, MUN won double-time for Sunday and public holiday work and that will remain intact. The overtime issue became complicated in negotiations due to the pending court case.
Other issues that were resolved to the benefit of workers include housing allowances and company transport. The housing allowance was increased to N$1,700 per month, while MUN won a guarantee that the company will provide transport to the capital city of Windhoek, some 650 kilometres from the mine. Previously, transport was only granted to Keetmanshoop, a distance of 200 kilometres.
Miners at Skorpion work seven-day on, seven-day off rotations.
The strike started on 9 May, and immediately drove zinc prices up on the London Metals Exchange. Skorpion, one of the world’s leading zinc mining and processing firms, produces 150,000 tonnes of special high-grade zinc annually. Management attempted to leverage its bargaining position last week by bringing in contract workers in efforts to continue production.
The Skorpion mining and smelting operation, wholly owned by Irish-based Anglo Base Metals, a subsidiary of AngloAmerican, began operations in Namibia in 2003. It became fully operational in mid-2005, and it produced 56,300 tonnes for the first six months of that year when the price of zinc was at US$660-per-tonne. The MUN strike pushed zinc prices up a full 5%, with it trading at US$2,285-per-tonne late last week.
The strike started on 9 May, and immediately drove zinc prices up on the London Metals Exchange. Skorpion, one of the world’s leading zinc mining and processing firms, produces 150,000 tonnes of special high-grade zinc annually. Management attempted to leverage its bargaining position last week by bringing in contract workers in efforts to continue production.
The Skorpion mining and smelting operation, wholly owned by Irish-based Anglo Base Metals, a subsidiary of AngloAmerican, began operations in Namibia in 2003. It became fully operational in mid-2005, and it produced 56,300 tonnes for the first six months of that year when the price of zinc was at US$660-per-tonne. The MUN strike pushed zinc prices up a full 5%, with it trading at US$2,285-per-tonne late last week.