Governor mediates LHU agreement

SWAKOPMUND
ADOL KAURE
Adolf Kaure

The Langer Heinrich Uranium (LHU) management and the Mineworkers Union of Namibia (MUN) have reached an agreement for the mine employees' severance payments after the mine was put on care and maintenance due to low uranium prices.

Under the mediation of the Erongo regional governor, Cleophas Mutjavikua, LHU and MUN signed the agreement which contained an improved retrenchment package.

According to Mutjavikua, conflict in labour relations is normal as long as it is managed properly.

“Conflict in labour relations points out some issues that are not normally pointed out. It also removes certain issues like complacency. Understanding of the issues is the cornerstone behind all agreements,” said Mutjavikua.

According to the agreement, there will be a notice pay equivalent to two months based on the employees' LHU total cost of employment as from the last working day. The notice pay however excludes variable pay such as shift, acting, scarcity, overtime, and night work allowances.

The agreement also stated that severance pay will be equivalent to two weeks per continuous and completed years of services.

The company will assist with the application for tax directives from the receiver of revenue where applicable, and fixed term employees who have been in the employment of the company for 12 consecutive months will also be eligible for severance.

“At least we reached something that we agreed on. The Labour Act is just a start, it doesn't stop you from valuing the people who have been working for you. I didn't think that we could reach this agreement, but finally we did,” said the location branch chairman of MUN, Paulus Iipumbu.

The LHU's human resource manager, Johan Roux, thanked the governor for mediating the process as well as the MUN for reaching an agreement.

“Retrenchment is something that is very difficult to handle. I am happy at this point to sign this agreement,” said Roux.

A total of 300 employees from LHU are affected while another 300 contract employees are also set to be retrenched.