Construction firm loses N$300k daily over NEEF strike
An illegal strike caused by the Namibia Economic Freedom Fighters (NEEF) has led to a Chinese construction firm losing as much as N$300 000 daily on its Keetmanshoop-Mariental road rehabilitation project.
Henan International challenged the illegality of the strike after NEEF disrupted construction activities.
Through its managing member Cui Yunke, the company said the strike was causing irreparable harm to Henan, with it losing N$366 666.67 on a daily basis, and with the possibility that it could be punished for incomplete work.
“The applicant shall also face contractual penalties because unplanned delays such as the present delay will lead to delays in the completion of the rehabilitation works. The contract for the rehabilitation works provides for a daily penalty for late completion of the rehabilitation works in the sum of N$20 000,” Cui said in an affidavit.
The illegal strike also meant Henan was in breach of its obligations to its client, causing immense reputational harm to the company, he added.
According to him, Henan was losing revenue on a daily basis because of the illegal strike, while its expenses were fixed.
“The applicant is losing revenue every day as a result of the total shutdown of the rehabilitation works. This shutdown emanates directly from the unlawful strike. The applicant will still have obligations to pay at the end of the month and these obligations total roughly N$350 226 per month,” Cui said.
Better working conditions
NEEF does not enjoy bargaining status at the construction site, nor did it attend a conciliation meeting convened by the conciliator to attempt to resolve the dispute, the company said.
Workers engaged in the strike demanding better working conditions in April. They demanded improved salaries and shelter as well as housing and food allowances.
Meanwhile, Metal and Allied Namibia Workers Union secretary-general Justina Jonas said the union had managed to get the workers back to work. It enjoys bargaining status on the site.
Henan International challenged the illegality of the strike after NEEF disrupted construction activities.
Through its managing member Cui Yunke, the company said the strike was causing irreparable harm to Henan, with it losing N$366 666.67 on a daily basis, and with the possibility that it could be punished for incomplete work.
“The applicant shall also face contractual penalties because unplanned delays such as the present delay will lead to delays in the completion of the rehabilitation works. The contract for the rehabilitation works provides for a daily penalty for late completion of the rehabilitation works in the sum of N$20 000,” Cui said in an affidavit.
The illegal strike also meant Henan was in breach of its obligations to its client, causing immense reputational harm to the company, he added.
According to him, Henan was losing revenue on a daily basis because of the illegal strike, while its expenses were fixed.
“The applicant is losing revenue every day as a result of the total shutdown of the rehabilitation works. This shutdown emanates directly from the unlawful strike. The applicant will still have obligations to pay at the end of the month and these obligations total roughly N$350 226 per month,” Cui said.
Better working conditions
NEEF does not enjoy bargaining status at the construction site, nor did it attend a conciliation meeting convened by the conciliator to attempt to resolve the dispute, the company said.
Workers engaged in the strike demanding better working conditions in April. They demanded improved salaries and shelter as well as housing and food allowances.
Meanwhile, Metal and Allied Namibia Workers Union secretary-general Justina Jonas said the union had managed to get the workers back to work. It enjoys bargaining status on the site.
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