The Botswana Mine Workers Union (BMWU) have been locked in talks with
management in an attempt to avert looming retrenchments as diamond
sales plummeted in response to the global financial crisis. Further
declines in diamond sales are anticipated.
Botswana has used
its mineral wealth to enhance its development, unlike some of the
continent’s other resource-rich countries, where minerals have often
become a source of conflict.
"Diamond sales revenue is
expected to decline by about 50 percent, as prices are estimated to
decrease by 15 percent, while production is expected to reduce by 35
percent," the Minister of Finance and Development Planning, Baledzi
Gaolathe, said in his recent 2009/10 budget address.
Per
capita income has grown from US$80 to about $7,000 since Botswana
gained independence from Britain in 1966. Government provides free
education until the age of 13, and sponsors most tertiary education
students.
In response to the AIDS pandemic it has rolled out a
huge antiretroviral programme through an established network of health
clinics, and has built an infrastructure that is the envy of its
neighbours.
The country has held regular elections since
independence and is viewed as a model democracy, and has also been an
almost lone voice in the region against the excesses of Zimbabwe’s
President Robert Mugabe.
Diamond sector
In recent
weeks, Debswana Diamond Company – a joint venture between South African
diamond company De Beers and Botswana’s government – the world’s
leading producer of diamonds by value, has been fervently trying to
avert mine closures.
Mine management and union officials have
held a series of meetings ahead of the planned closure of two mines,
Damtshaa Mine and Orapa Mine’s No. 2 plant, as well as possible job
cuts at Letlhakane diamond mine, in central Botswana. The mines employ
about 2,000 people.
"We are still in negotiations with the
unions over the fate of the workers that have been affected by the
closure of the two operations and are hoping to reach an agreement this
week," Debswana spokesperson Esther Kanaimba told IRIN.
We are
going to look at many strategies so that damage to workers is minimal.
Retrenchments will only be used as a last resort after all other
strategies have been exhausted
 "We are going to look at many
strategies so that damage to workers is minimal. Retrenchments will
only be used as a last resort after all other strategies have been
exhausted." The mines have as yet not been closed.
Debswana
employs about 6,500 people, accounting for about 2 percent of
Botswana’s workforce, but general unemployment is still estimated as
high as 40 percent. The country’s biggest employer is government, with
nearly 300,000 employees, or more than one third of the workforce.
However,
the diamond industry creates secondary industries and a fall in diamond
production will have an impact on those, as well as on government
revenues and therefore its ability to pay its workforce.
Other mines
Bamangwato
Concessions Limited (BCL), a copper mine in Selebi-Phikwe, northeastern
Botswana, controlled jointly by the Botswana government and Norilsk
Nickel Mining & Metallurgical Company, a Russian enterprise, has
announced 348 retrenchments, but the job losses were put on hold by
government in a move viewed as a political strategy ahead scheduled
elections later in 2009.
Mine General Manager Montwedi Mphathi
told local media recently that BCL could not reconcile labour costs –
40 percent of production costs – in the current economic climate.
The
retrenched employees, out of staff compliment of 4,000, will receive
assistance and advice. "The Local Enterprise Authority (LEA) has agreed
to provide counselling. They will be advised on how to use their exit
packages and be enlightened on some of the possible projects they can
venture into," Mphathi said.
Moolman Mining has retrenched 177
workers, out of a planned 400, at its nickel plant in Mowana, central
Botswana, but the labour department has become involved in the dispute
after dissatisfaction was expressed over retrenchment packages.
"We
believe that we are an indispensable stakeholder in this scenario,"
said BMWU Secretary-General Jack Tlhagale. "Moolman should consult and
negotiate with us instead of presenting a scantily thought out
retrenchment package in which we had absolutely no input."
Botswana’s
failure to diversify its economy during "good times" and reliance on
mineral revenues to fund development is becoming a key criticism of
government policy by opposition parties in an election year.
(IRIN)
Post published in: Uncategorized