Parliament Accuses Mining Sector of Using Subcontractors to Suppress Wages in Windhoek

Namibia’s mining sector has come under parliamentary scrutiny following findings that companies are using subcontractors to employ workers at lower wages and reduced benefits.

The Parliamentary Committee on Poverty Eradication and Labour raised concerns that the practice undermines labour protections and weakens workers’ rights across the industry.

Committee chairperson Justina Jonas presented the report’s findings to mining industry representatives in Windhoek, warning that the subcontracting model appears to prioritise cost-cutting over fair employment standards.

The committee observed a recurring pattern in which permanent employees are retrenched and later rehired through subcontracting arrangements under less favourable terms across several mining operations.

After examining 11 mines in five regions, the committee found that subcontracted workers were performing the same duties as permanent employees but receiving inferior benefits, including reduced wages, lack of pension contributions and limited job security.

The report also documented the impact of short-term contracts on relationships between trade unions and companies, corporate social responsibility obligations and skills transfer within the sector.

Concerns were further raised regarding occupational health and safety standards.The event, organised by Parliament under the theme “Public Dialogue: Promotion of Decent Work Within the Namibian Mining Sector”, brought together industry stakeholders to explore practical solutions to the issues identified in the report.