NamGem, Union Sign Wages Agreement

NamGem Diamond Manufacturing, the Namibian polishing plant at Okahandja, and the Mineworkers' Union of Namibia (MUN) have agreed to an eight percent across-the-board salary increase for employees at the diamond cutting and polishing factory, effective from the beginning of this month.

Last June, negotiations ended a strike over pay increases, with the sides settling on an eight percent pay increase, the same as this year.

The sides also agreed to form a sub-committee to investigate and recommend a performance based system for salary adjustments to replace the current system within three months, said Namdeb spokesperson Hangula-Shikwambi.

However employees might not receive all of their monies just yet. NamGem appears to be losing money and the sides agreed that the housing allowances would not be paid until the company reaches break-even, or better.

NamGem diamond polishers earn a basic salary plus a commission on each polished stone, while trainees only receive an allowance and a commission.

After a turbulent period, the Namdeb owned company brought in DTC Sightholder Lazare Kaplan to take control of the polishing plant early last year and provide marketing and technical manufacturing assistance.

Shortly afterwards about 70 employees went on strike to protest against restructuring plans introduced by Lazare Kaplan.