Mining firms outsource to cut costs, boost profits - unionist
The Mineworkers Union of Namibia is protesting the mining sector's increasing reliance on outsourced contract labor. The union argues this practice undermines job security, reduces wages, and creates a dual labor market that prioritizes profits over worker welfare.
Why it matters
This highlights a growing tension between corporate cost-cutting strategies and labor rights in developing economies, potentially setting a precedent for future industrial relations policy.
Namibia’s mining sector is facing scrutiny over its increasing use of contractors and temporary workers to perform work that is traditionally done by permanent employees.
The Mineworkers Union of Namibia says mining companies are using the method to lower labour and operational costs to make profits.
Union secretary general George Ampweya warned that the cost saving mechanisms could come at the expense of workers’ salaries, job security, social protection and the economy.
“This practice has contributed to the erosion of decent work conditions in the form of reduced wages and job security. It has led to a decline in salaries for outsourced workers, adversely affecting their economic security and well-being,” he said yesterday.
Ampweya said the industry cannot be considered successful if workers are living with insecurity and instability.
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