NamGem Workers Strike As LKI Attempts Restructuring

Approximately seventy employees of NamGem have refused to return to work since midday Wednesday protesting managements restructuring plans introduced by Lazare Kaplan.

Presently, discussions are underway between management and the Mine Workers Union (MUN).

Lazare Kaplan took control of the diamond cutting and polishing factory at Okahandja, Namibia in January as part of a strategic cooperation agreement. The plant is owned by Namdeb, in turn owned by De Beers and the government of Namibia.

LKI was brought in to provide marketing and technical manufacturing assistance to NamGem. LKI also purchases rough diamonds and supervise the manufacturing of those stones it deemed suitable to cut and polish.

Hangula-Paulino says that to date, LKI has invested N$3.5 million (US$545,600) in employing the latest technology in the factory and propose to spend an additional N$10 million (US$1.56 million) in further training.

“The company is currently expanding its work force by employing 25 new trainees and remains committed to resolving issues through the agreed procedures adopted in the recognition agreement,” she adds.

The new system is expected to link pay to the flow of diamonds at the cutting and polishing factory.

The sides are due to meet today to continue talks but the company maintains the “no work no pay” principal will apply and is considering taking formal disciplinary action against striking employees.