The Namdeb Diamond Corporation, which is owned by diamond giant De Beers and the Government of the Republic of Namibia, announced that it has received MUN notification of its members’ intention to strike.

A statement by Namdeb Managing Director Inge Zaamwani-Kamwi, posted on the De Beers website that the Namibian diamond mining branch was "operating in times characterised by a worldwide economic downturn, which has adversely affected our industry. We were forced, during the past two difficult years, to expect from our employees to bear with us as we battled for the very survival of our company."

Zaamwani-Kamwi's statement reviewed the company's 2009 performance, saying its pre-tax losses came to N$414 million; production costs were reduced to N$2.82 billion; and carat production went down by 56% due to decreased demand for our diamonds as a result of the economic crisis.

"Towards the end of last year," continued the statement, "(…) We took a decision to reward our employees. All employees, regardless of level or position, received a payment of over 12% on their annual basic salary. This agreement was signed off in full and final settlement of the 2009 substantive negotiations.

"With the concerted effort of all our stakeholders, including our employees, we have been able to respond to the economic crisis and survive a very tough year with our business intact.

"The challenges of attracting and retaining professionals to the remote town of Oranjemund remain a key focus. In order to address this challenge Namdeb introduced a site allowance to attract professionals to Namdeb. This allowance was intended to serve as an added incentive, not only to attract but to also retain professional skills in a very competitive environment.

"As part of the 2010/2011 wage demand, the MUN requested an Oranjemund Remote Allowance paid as 20% of basic salary for all its members… As a manifestation of good faith and in an attempt to settle these negotiations, Namdeb offered an Oranjemund Remote Allowance calculated 5% on midpoint of scale to employees within the Bargaining Unit. Similarly other allowances that are justified within the bargaining unit have been paid for some time and do not apply outside the bargaining unit."

In addition to the wage negotiations, added the statement, the diamond producer "has been working on an improved bonus scheme which will reward superior performance. The scheme has been designed after wide consultation and is currently being piloted for roll-out later this year.

"Namdeb’s offer to the bargaining unit will cost the company an additional nearly N$29 million a year. Nevertheless we remain committed to paying a fair and reasonable wage to our employees. After applying the company’s increase offer, Namdeb’s basic minimum wage before allowances will be more than N$4,000.

"What Namdeb needs the most now are employees and other stakeholders that work and pull together to achieve our vision for the future, which is a profitable Namdeb beyond 2050," concluded the managing director's statement.