[Namibia] Unions highlight low pay in diamond-cutting industry

In Namibia, a recent study has revealed a concerning number of challenges in the diamond-cutting industry, such as low wages, inadequate employment benefits and a significant presence of unskilled expatriates, The Namibian reports.

The Mineworkers Union of Namibia (MUN) report was presented to Utoni Nujoma - the minister of labour, industrial relations and employment creation - by union leadership earlier this month.

Ismael Kasuto - MUN president - reportedly said the purpose of the report is to highlight the exploitation of workers and non-compliance with the Affirmative Action Act and the Immigration Act.

“Some of the practices are quite worrying with pathetic benefits, such as N$100 for housing. Some of the companies have close to 30% of the total expatriate workforce, which is quite a lot, and then they don’t have to pay that exception for them to be there,” he said.

Mr Kasuto said the union has also discovered that labour inspectors have not visited the diamond-cutting and polishing factories for over three years.

He said the union expects the minister to determine strategies for joining forces to address the challenges workers face.

The highest-paid employee in the diamond-cutting industry earns N$14 700, while an entry-level salary starts at N$1 500, according to the report.

The MUN said low wages have created barriers to accessing essential services such as healthcare and education, perpetuating a cycle of financial hardship for employees and their families.

In addition, wage disparity has reportedly had a detrimental impact on employee motivation and productivity, hampering the industry’s overall competitiveness, the report said.

The union has recommended an in-depth analysis of industry salary benchmarks to ensure employee wages align with the national average sustainable living wage.

The MUN also recommended that industry stakeholders adopt a fair compensation structure that accurately reflects the skill level and productivity of workers.

The report also reportedly outlines the impact of an abundance of unskilled expatriates without specialised skills.

There are currently 256 expatriate workers and 628 locals in the industry, according to the report. The MUN said the large presence of expatriates threatens the job market and limits employment opportunities for local workers.

The union stated that there is a need to implement stringent work permit policies to prioritise skills scarcity and for the establishment of programmes facilitating knowledge exchange between expatriates and Namibian workers.

It has called for urgent intervention by the ministry to ensure better wages, improved employment benefits and the appropriate utilisation of expatriate workers. 

On November 19, Minister Nujoma acknowledged the report and said that the ministry is currently considering the matters raised.

“In the meantime, we will send labour inspectors to the different companies to do further inspection,” he said.

Source: The Namibian

(Quotes via original reporting)

In Namibia, a recent study has revealed a concerning number of challenges in the diamond-cutting industry, such as low wages, inadequate employment benefits and a significant presence of unskilled expatriates, The Namibian reports.

The Mineworkers Union of Namibia (MUN) report was presented to Utoni Nujoma - the minister of labour, industrial relations and employment creation - by union leadership earlier this month.

Ismael Kasuto - MUN president - reportedly said the purpose of the report is to highlight the exploitation of workers and non-compliance with the Affirmative Action Act and the Immigration Act.

“Some of the practices are quite worrying with pathetic benefits, such as N$100 for housing. Some of the companies have close to 30% of the total expatriate workforce, which is quite a lot, and then they don’t have to pay that exception for them to be there,” he said.

Mr Kasuto said the union has also discovered that labour inspectors have not visited the diamond-cutting and polishing factories for over three years.

He said the union expects the minister to determine strategies for joining forces to address the challenges workers face.

The highest-paid employee in the diamond-cutting industry earns N$14 700, while an entry-level salary starts at N$1 500, according to the report.

The MUN said low wages have created barriers to accessing essential services such as healthcare and education, perpetuating a cycle of financial hardship for employees and their families.

In addition, wage disparity has reportedly had a detrimental impact on employee motivation and productivity, hampering the industry’s overall competitiveness, the report said.

The union has recommended an in-depth analysis of industry salary benchmarks to ensure employee wages align with the national average sustainable living wage.

The MUN also recommended that industry stakeholders adopt a fair compensation structure that accurately reflects the skill level and productivity of workers.

The report also reportedly outlines the impact of an abundance of unskilled expatriates without specialised skills.

There are currently 256 expatriate workers and 628 locals in the industry, according to the report. The MUN said the large presence of expatriates threatens the job market and limits employment opportunities for local workers.

The union stated that there is a need to implement stringent work permit policies to prioritise skills scarcity and for the establishment of programmes facilitating knowledge exchange between expatriates and Namibian workers.

It has called for urgent intervention by the ministry to ensure better wages, improved employment benefits and the appropriate utilisation of expatriate workers. 

On November 19, Minister Nujoma acknowledged the report and said that the ministry is currently considering the matters raised.

“In the meantime, we will send labour inspectors to the different companies to do further inspection,” he said.

Source: The Namibian

(Quotes via original reporting)