Mines reportedly undermine labour protection for contract employees

By: Hertha Ekandjo

Despite the explicit protection provided to contract workers under Section 128 of the Labour Amendment Act of 2012, which ensures equality in pay and working conditions with permanent employees, numerous reports and employment statistics suggest widespread non-compliance, particularly in the mining sector.

The Act stipulates that workers must be employed on a permanent basis unless an employer can provide valid justification for fixed-term employment. However, a draft concept note by Parliament has highlighted that some mining companies continue to flout these provisions.

The note also indicates that certain companies violate conditions attached to their Exclusive Prospecting Licences (EPLs) and merger or acquisition agreements, which often include minimum thresholds for permanent employment or impose temporary bans on retrenchments.

“In addition, some mining operations are using subcontractors, which results in workers not being placed under contract with the user enterprise, and therefore not receiving the same employment benefits as their counterparts,” the draft reads.

There has also been a concerning trend in the sector where permanent employees are retrenched and later re-engaged under labour hire or contract arrangements, often through private employment agencies. According to lawmakers, this practice undermines existing labour protections and exposes workers to precarious and low-benefit conditions, which runs counter to Namibia’s constitutional vision of social justice.

An analysis of employment data from 2012 to 2023 reveals a steady decline or stagnation in permanent employment across most years, with contractor numbers peaking at 9 423 in 2015 and 8 436 in 2023. The number of temporary workers has also steadily increased since 2020.