A lockout began at the longline hake operation of Lüderitz-based Marco Fishing on Friday following a breakdown in wage negotiations with the Namibia Food and Allied Workers Union (NAFAU).
The union, which represents more than 200 employees at the company, is seeking wage increases of about 50% for seagoing workers and 21% for land-based employees.
NAFAU regional coordinator Matheus Simon said the union's initial proposal was for a N$2,000 increase for seagoing employees, whose basic salaries are about N$4,000.
"Our initial proposal was for a N$2,000 increase. The company offered a three-year agreement consisting of a 4.5% increase in the first year, 5% in the second year and 5% in the third year. We believe that is not in the best interests of employees. We want the increase implemented in one year instead of over three years," Simon said.
He said the union had also proposed suspending wage negotiations in 2027 if agreement could be reached this year.
Simon added that the company had refused to consider making temporary employees, some of whom have worked for more than five years, permanent.
Marco Fishing said it had no viable alternative but to implement a lockout in accordance with labour legislation after negotiations, which began in August 2025, reached a deadlock in April 2026.
The company issued a notice on 17 July informing the union that its members would be locked out and would not receive salaries in terms of Section 76(1) of the Labour Act. "This decision was not taken lightly. We did it to safeguard the long-term sustainability of our operations, preserve employment where possible and ensure the business remains able to continue operating," chief executive officer Steven Rajzman said.
Rajzman said the union had indicated during negotiations that it intended to embark on strike action in November and December.
He said those months represent the company's busiest trading period, when vessel utilisation, factory production, export commitments and cash flow are at their highest.
"The prospect of industrial action during this period presents a significant operational and financial risk and was one of the factors considered by the company in reaching its decision," he said.
Simon accused the company of negotiating in bad faith. "The workers voted in favour of strike action, but we never gave formal notice that we would implement the decision. Marco Fishing wants workers to go without salaries in August, September and October so that when the peak season starts in November, they will be forced to accept the company's offer," he said.
Rajzman said the company's longline hake business had come under sustained operational and financial pressure because of poor catches, restricted access to historical fishing grounds south of Lüderitz and the increasing difficulty of maintaining a commercially viable operation.
He said the average hake catch per fishing operation had declined by more than 45% over the past five years, resulting in losses of about N$20 million.
"We cannot accommodate the wage demands under the company's current financial circumstances. Marco Fishing has consistently raised these concerns with the Ministry of Agriculture, Fisheries and Land Reform and formally requested urgent relief by allowing longline fishing in shallower waters again because longliners do not catch juvenile fish," he said.
"We will notify our general secretary, Jacob Penda, and ask him to request that the Minister of Justice and Labour Relations, Fillemon Wise Immanuel, visit the company and intervene to help resolve the impasse," Simon said.