Just heard Namdeb is shutting down production from the 16/12/2008 to 15/01/2009.
Most employees will have to take leave, going to be a very quiet Chrismas here in Oranjemund. image031
Details will be be briefed to employees next week.
A long Christmas holiday ... our factory , and in fact a lot of concerns used to do annual shutdown from about 18 Dec till about 11 Jan ... a whole month is however long .. ... reasons for this .. anyone in the know ??
I do not understand how a forced holiday can save a company money, don't the employees get salaries anyway? and production will drop? ... maybe somebody can explain it to me... totally out of my field and I've never worked for a company before. I can only see that a company would save if running costs are higher than their "harvest".
I also heard that the De Beers pensioners got letters that they will not be getting an increase in pension in January, and also no end of year bonus at the end of the month as usual.. simply not enough funds. They are however getting an increase of 6,x% this month??? Maybe somebody can enlighten me?
The mine has massive stockpiles both of material at the plants and their stockpile of diamonds is ever increasing, yet they are unable to sell it due to the world financial crises, it makes economical sense not to carry on making that stockpile larger if you cannot sell it....kinda like baking a loaf of bread for a family of four, the bread is half eaten , yet you bake another one.....and then another one....the family is still living and going through the motions , yet they do not need all the bread.... running costs to the mine will be in the fact that their are no vast fuel bills to pay, certain sections of the mine will be shut down, thus saving on electrical bills, no overtime to paid, a huge reduction on a workforce to fees...... reduction on leave that might have had to be paid out in case of future retrenchments........
Thats how I see it....
From Spar's perspective, it will be devastating, although we were expecting a longer shutdown, we are still hoping that due to economic circumstances, most of the "holiday" people plan to stay in this quiet town for their holiday, thereby shopping local......
From my perspective, which is very unbusinesslike (i made that word up) , I look forward to seeing the town empty....... I get a kick outta it...... quiet, alone, the braai's feel different.... the beach quieter....in a sense.....you get to see who the real Oranjemunders are.....
Thanks for that .. thought it would have had something to do with economic slowdown ... and yes as in the case of the mine there is a saving in running cost .. and yes we have done so in the past as well .. but you can only bank on building up so much stock .. we done that before .. our bread bag, salt packaging , and fresh produce commodity sizes .. we have run during the deathly quiet times banking on the orders comin in later .. but even that party stops .. then we shut down and maintain and send people on leave ...
Trying times ahead indeed, one can't help but wonder is this the start of the next Great Depression? I've had a couple of wives wondering how they are going to manage without their husband's standby/overtime, especially at this time of year.
Unfortunately Namdeb has been in the habit of paying their staff their Dec wages a couple of days before Christmas and so by the time the middle of Jan comes around a lot of the employees have no money left - just when they need to be buying school uniforms and stationery for the new school year. Surely it would have been better to hold back their annual bonus that is paid at the end of November and rather pay this out just before Christmas and leave their normal salary for the end of Dec?
Michele so correct .. first one .. never budget based on overtime and standby ... its not garuanteed .. next the bonus .. put most of it away after doing a bit of treating ,, and yes the mid January depression .. I see people repeating it over and over again ... been there once or twice in my life and resolved to stop repetition .. its not nice ... thats why I hung onto my Opel for 11 years ... cos after 60 months I was debt free and only had to pay for routine maintenance ...
Sandy - I wish more people would think like you do but unfortunately they don't - they just see the money in their bank account and have to spend it. I also paid off both our cars as soon as possible and although I would love to buy a bigger one to accommodate baby no. 3 I also know that it just doesn't make sense and that my little mom's taxi will do us fine around town.
From Spar's point of view I think this is going to be our worst Christmas to date but I'm hoping that the others will have listened to my warnings of having to decrease orders and only order the necessities.
We got briefed by the GM today.
Namdeb has to cut costs by 50%.
The workforce will also be cut by 50%.
Although we have work trickling in for the new year .. the loading does not look fantastic . some of our opposition are closing for full month 12th to 12th ... we lucky we still have workload .. I'm now starting to produce some orders for early january .. but then it looks like a dry-up ... our official holiday is from 19th till 5th .. I have now been asked to give entire staff extra leave till 12th .. I'm standing fast and have said i will only give to selected people with excess leave .. and definitely a want crew in to do essential maintenance issues that have been screaming at me for a good part of the year and to keep one or two key machines clear of any backlog .. .. If I dont do them then .. the I will be pushing machines to limits ... I am taking the optimistic angle that yes work will come in .. and also that we will be up to speed to accomodate new business from existing and new customers maybe frustrated by their current vendors inability to deliver .. we won the lucrative Babysoft range under similar circumstances a couple of years ago by being ready and raring to help .. so Right now I'm like the lone messenger but yes sticking to my guns .. and yes slowly winning by persistence in my stance ..
I still wonder if people will be emptying out of the town for the Xmas period or will they be hanging about, perhaps uncertain of their future?
Mmm Mikes eyes doing the proverbial ... wondering.. yes we all wondering ... like said I'm pitching optimistic .. and yes been through lean times before .. all its done for me is allowed me to consolidate and get out of the runaway train feeling as happens in a production environment and develop a focus and yes get closer to my employees as they needed my ecouragement and positive input .. .. but yes different for each sector ... during our lean time 3 years ago we just learnt to work more smartly plan more cleverly .. and yes wait for the boom time that occured 6 months down the line .. we all stuck together through that time and when it was over .. i could say .. " see it was'nt that bad see what we can do ?? " but yes running a supermarket and having loss of income for too many months can wreak havoc on your business and personal plans .. Guys lets all just hold thumbs and be the optimists . and get strength form the adversity thrown at us ...
Seems like my pitching optimistic is creating good energy ... firstly .. I took a close look at planning board and looked at completion dates for tonnage required by phase ,, 1 year end ,,, 2 early January .. the planner was in my opinion cutting it so fine not taking inot account shutting down on weekends .. we had a disastrous startup this monday after a month and half of continious run and fantastic efficiencies .. this week was the dark side of the mirror .. awfull .. awfull ... so did my own little number .. tonnage by machine .. days required to do it safely .. plus factoring in tings going wrong .. into the new year ... it was a case of balancing on sword edge .. furthermore .. quick cost of excess wastage and productive time lost ... big bucks .. the overtime bill would pale into total insignificance compared .. i put it out all neatly by machine and requirements and painted the potential for doom and disapointed customers as well ... so i got open book to run right through to shutdown on thursday .. the moment I got that right ... manna dropped from heaven .. more work has flowed in .. regular customers .. booking ahead ... so far from nil for first week in Jan ... to 2 weeks on 3 key machines ... see think positive .. do certain actions .. and the rest follows ... If it does not follow that way .. then it was meant to be .. then you make other plans .. a lesson for all ..
50 % of the workforce ! That's a lot of people who will be looking for alternative employment. My heart goes out to them. The economy is very depressed at the moment and lots of big and small companies are laying off people now, what with the whole US subprime debacle spreading all over the world.
Leon
Dunno if this was mentioned some where else on the site, but it seems Debeers Marine Nam is also pulling up anchors and stopping production for 2 months... Guess I don;t need to bother coming back from NZ then :)
Hi Mike
Did the GM give any timeline as to when the Namdeb workforce is to be cut by 50%?
Another oppurtunity has opened to apply for Voluntary Separation from Tuesday 9 December until 16 February 2009. Quite a big chance. I reckon there will be a huge number of folk applying now. 50% is a fat wack of people that must go.
Ouch... but we will see what happens after New Years...
Time flies .. me been so busy .. work and yes the social .. today is the 17th .. did the shutdown occur on the 12th ??
JOHANNESBURG (miningweekly.com) – Namibian diamond producer Namdeb and De Beers Marine Namibia would immediately reduce production for the remainder of 2008 and early 2009, as a result of high inventory levels and low liquidity impacting on wholesale clients' ability to purchase new rough diamond supplies.
Namdeb said in a statement on Friday that prices for polished diamonds remained above the levels seen at the beginning of the year, however, the wholesale market for new rough diamonds in the major cutting centres had been impacted on by the global economic crisis.
The companies would reduce production in line with demand and would try to preserve cash.
For De Beers Marine Namibia this would mean that the vessels would be laid up in port from mid-December until early in 2009.
The producer said it would strive to reduce the impact on its employees, however, a reduction in staff was inevitable.
Namdeb would reduce some mine sites to one shift and stopping most operations over the festive season, and others would carry out more essential maintenance.
Meanwhile, Namdeb said the long-term dynamics of the diamond industry would remain strong. There was likely to be demand growth in emerging markets, such as China and India, in future.
Mike, so we're talking about roughly 7000 Namdeb employees??
Nope, Namdeb has less than 2000 employees these days...
even a 1000 people is a big bunch of folk. I suppose a lot of folk would be near retirement?
I heard a worrying tale today, about some contractor workers not being paid by Namdeb...... reckons they would only be paid in February........ Anyone know anything?
Mike it looks like your 'Oranjemund Retirement Village' is coming closer now, what with all the houses that will soon become empty.
I'm really sorry to hear that the depression has reached so far and wide . . . all caused by some greedy fat-bastard USA banking executives, who should all be ferreted out, lined up against a wall, and shot!! BoomSmilie_anim
Good luck to all the folks in my old home town . . . I wish you the best.
That Canadian Guy,
rooster
do not forget the consumers themselves who went on an orgy of spending on borrowed money and buying big gas guzzling 7 liter cars.
A horrible symbiosis that turned bad .. and yes the rest of the world suffers cos when the big USof A sneezes the whole world catches a cold ?? they should be left to nurse their own illness ... de link the dollar from oil ...
Namdeb is shutting down production for three months.........Was briefed by the MD this morning. image031
jees now this is getting kind of serious guys.
Just gives us more time for Braai'.......... Stennie ... go round up a few more white horses.... I'll shoot some meat....
image061
Here in Aus most of the factories, car manufacturers, etc, are working a 3 day week to keep things ticking over. The mines here have also laid off thousands of workers. The government is pouring billions into the economy to keep unemployment down to a reasonable level - it stands at about 6-7% now, so still not desperate yet. We seems to be a bit protected from the worst of the recession, but it looks pretty bad. We have a strong social system so get something from the government to keep one going. I dread to think what the unemployment rate will be like in SA/Namibia with very little gov support.
Tough times ahead for everyone.
Malcolm
Mike, this shutdown is obviously bad news for you. How is Spar going to cope?
Well, 22 Workers have/are leaving us today......
We stocked 18000 lines, dropping it down to 11 000 lines...
We normally receive 3 lorry's a week from CPT, just spoke to Head Office, moving it to 1 lorry a week in 3 weeks time....
This is a global thing, all we can do is hang on for the ride.....
I hear starting first April, 3 months production leave?
meanpuff
Perversely so .. we just had a big meeting this morning ... we are being asked to supply 128 tons of shrinkwrap for Savannah , & Hunters variants for Distell Gauteng over a period of 3 and half months .. thats aside from the 70 plus for cape town ... Ok I see the same scenario as last year .. marketing predicted huge offtake and it slowed down to 60 % .. but so what ??? its work .. my dept still doing weekend work ... and yes I'm going to have to pull the rabbbit out of the hat to meet demand ... Ouch but yes $$$$ income for our company that garuantees jobs .. the world is a strange place.. seems the worse things become the more people drink ... martini
Awful part is that i might in the light of all this have to delay my trip up in april ... firstly all the long weekends easter and then the wisdom of our powers that be in declaring wed 22nd april election day IOW a public holiday ?? ... why could they not make election days on weekends or a friday or a monday ?? I know why its a stupid populist move or a preverted wisdom ... if its on a weekend then the locals will be too pissed to get to the polling stations .. if its a friday they will only have their minds on the weekend .. and if its a monday they will all be too babelaas ... I'm going to have to do some fancy footwork and bribing to get a skeleton crew to work as i cannot shut my process down for one day midweek Uuugh !! F.. g idiots ape .. but yes I will see how things are going and shape up ...
NAMDEB is taking a three-month 'production holiday' that will temporarily bring mining activity to a halt as the company grapples with the global financial crisis.
Namdeb's Group Manager for External and Corporate Affairs, Hilifa Mbako, told The Namibian on there had been no diamond sales in January and February, placing Namdeb's cash flow in a "unfavourable" position.
He said the 'production holiday' was the preferred option of several considered – one of which entailed shortening working days.
"The reason that the production holiday was the most favourable is because we save on the costs of inputs into production, such as fuel, which is the biggest cost, vehicles, electricity, and so on," he said.
Along with Managing Director Inge Zaamwani-Kamwi, Mbako last week toured the diamond area to discuss the impact of the global recession with employees and to weigh cost-saving options.
Asked how workers will be affected, Mbako told The Namibian that they will be paid their salaries during the production holiday.
"Also, not all areas will be shut down, and essential services such as the school, the hospital, the sea walls, etc [at Oranjemund] will continue to be run," he said.
Poliverster Hangula of the Mineworkers Union of Namibia (MUN) Oranjemund branch, who was present during the consultations, says only 260 of the mining giant's workers will remain active.
He confirmed that various options had been outlined, and that workers had been invited to say which they preferred.
The global financial crisis has left Namdeb deeply scarred, pulling down its income levels to below 50 per cent of the projected income for the period since September.
The company slowed down production significantly in December following dismal sales in November.
Mbako says the vessels did not return to the mining area in mid-February as planned, noting that "production levels are constantly being monitored and adjusted in response to demand".
Namdeb last month confirmed that it had renewed a N$650 million revolving overdraft facility, with the Namibian Government and DeBeers providing surety of N$325 million each.
Namdeb also embarked on a voluntary retrenchment exercise in January to cut its staff by at least 600.
Workers have until Monday to apply. About 578 employees have already applied and 520 applications have been approved. According to Namdeb, 279 have received their severance packages. Sixteen applications were turned down and decisions are still pending on the remaining 42.
Asked whether the response was strong enough to stave off forced layoffs, Mbako said: "We believe we will achieve the numbers and it appears that in the main we will have no forced retrenchments. However, there are a few positions where redeployment is unlikely and the incumbents have chosen not to accept voluntary separation. In such cases the company will have to consider retrenchment."
Responding to questions posed in the National Assembly on Thursday, Mines and Energy Minister Erkki Nghimtina described the diamond industry as having gone into survival mode.
"It is being predicted that the whole diamond pipeline from the mines to our factories up to jewellers will be in 'survival' mode for the rest of 2009 and for the most part of 2010," Nghimtina said, adding that serious job losses and possible closure of some diamond cutting and polishing factories can be expected.