Namdeb shutting down production for a month

[Mike Stenson (RIP)]

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. 
Details will be be briefed to employees next week.

[SandyB]

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 ??

[Bertie Horak]

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?

[Michael Alexander]

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.....

[SandyB]

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 ...

[Michele Alexander (Voden)]

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?

[SandyB]

 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 ... 

[Michele Alexander (Voden)]

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. 

[Mike Stenson (RIP)]

We got briefed by the GM today.
Namdeb has to cut costs by 50%.
The workforce will also be cut by 50%.

[SandyB]

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 ..

[Michael Alexander]

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?

[SandyB]

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 ...

[SandyB]

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 ..

[Leon Sumter]

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

[David John Long]

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 :)