Namdeb shutting down production for a month

[Malcolm Bertoni]

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

[Sean]

Mike, this shutdown is obviously bad news for you.  How is Spar going to cope?

[Michael Alexander]

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.....

[Alfred Boehme]

I hear starting first April, 3 months production leave?

[SandyB]

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 ... 

[SandyB]

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       ..  but yes I will see how things are going  and shape up ...

[Michael Alexander]

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.