Hertta-Maria Amutenja
The Mine Workers Union of Namibia (MUN) has won a dispute with Sinomine Tsumeb Smelter over its voluntary separation programme (VSP). A recent ruling found the company must comply with section 34 of the Labour Act.
The decision followed two days of conciliation talks on 12 and 13 August 2025. Section 34 requires companies to consult employees and unions and give proper notice before asking workers to leave for economic, technological, or operational reasons.
The dispute began when MUN accused Sinomine of bypassing fair labour practices by pushing ahead with the VSP without engaging the union.
The union said the scheme was a “disguised termination of employment” and should be handled under Section 34 procedures for collective dismissals.
The company argued the process was voluntary and did not require union involvement.
Minister of justice and labour relations Fillemon Wise Immanuel referred the matter to conciliation under section 80 of the Labour Act to determine the legal position.
The ruling upheld the union’s view, and both parties signed a settlement agreement to place the VSP under section 34.
“This ruling is a clear example of using the law to ensure workplaces in Namibia remain fair and peaceful,” said Immanuel.
The ruling ends weeks of disagreement between the union and the company.
In July, MUN accused Sinomine of refusing to negotiate and advised workers not to apply for the programme until the dispute was resolved.
The Namibian Competition Commission also expressed concern that the VSP could be a disguised retrenchment. Immanuel suspended the programme and warned the company not to accept applications from employees during the dispute.
The July standoff came after earlier conflict over planned retrenchments. In June, MUN rejected the proposed job cuts, calling them unjustified and procedurally flawed.
In a letter to minister of industry, mines and energy Natangue Ithete, MUN’s secretary general George Ampweya accused the company of undermining the union’s role and bypassing due process by holding “informal and irregular engagement processes” led by the human resources division instead of company leadership.
MUN warned that job losses would harm workers, their families, and the wider Tsumeb community.
Member of parliament Willem Amutenya also opposed the retrenchment plans, saying the smelter is a key part of the town’s economy and that the separation packages had serious socio-economic consequences for workers with loans.
