Martin Endjala
Ndinelao Shuudifonya, a retail worker in Windhoek’s bustling Chinatown shopping complex, finds herself in a precarious situation after her employer recently informed staff that the business might close due to their inability to pay Namibia’s newly implemented national minimum wage of N$18 per hour.
For Shuudifonya, who has worked at the shop for a year and a half, this revelation has brought mixed emotions.
“At this point, I am prepared to face whatever comes. For far too long, these Chinese have been using us like donkeys, working from seven to seven, Monday to Sunday, with no leave and no off day, while earning N$1000. Now they will have to pay us decent salaries with the new labour standard,” she said.
Shuudifonya does not buy her employer’s claim that paying the new wage would be financially unsustainable.
She points to the shop’s daily revenue, which she says often exceeds N$1 000 within just two hours of trading.
“They think they are smart, but they are not. We make this money for them. So we know exactly how much they make, and that’s why their claim of not being able to afford the new wage is a total lie,” she said.
Her frustration also stems from what she sees as a lack of fairness and trust from her employer.
She shared how the shop owner often leaves employees in charge while travelling to China, entrusting them with the entire operation.
Yet, when it comes to abiding by the new wage law, she feels that trust is not reciprocated.
“If we were bad people, we would have easily robbed him while he was away in China, but we did not have such intentions, as such acts would have left us jobless. Thereby disrupting our livelihood,” said Shuudifonya.
The new minimum wage, which took effect on 1 January 2025, represents hope for workers who have long endured poor working conditions and meagre pay.
Yet, the announcement has brought uncertainty.
Shuudifonya’s story is the same for many workers at Chinatown where employers are facing the prospect of reducing their workforce or closing down as they struggle to comply with the minimum wage.
The Ministry of Labour’s acting executive director, David Igonda, said employers struggling to meet the new wage can apply for an exemption.
“Once we have satisfied all facts for that company, the ministry will then grant an exemption based on the agreement with that company. But we first need to make sure that such a company complies with all the laws,” he explained.
According to him, no employer should retrench or close business without notifying the ministry.
The Namibian Food and Allied Workers Union (NAFAU) secretary general, Jacob Penda, recently called for strict enforcement of the wage standard and penalties for non-compliance.
Similarly, Namibia Revolutionary Transport and Manufacturing Union (NARETU) commander, Petersen Kambinda accused some Chinese employers of attempting to undermine minimum wage enforcement.
“Those people make profits, which they can afford to pay the N$18 per hour. The sales, on average, in Chinese shops on a day can be around N$8 000, and to pay their employee N$3 500 in a month isn’t reasonable as you still have over N$100 000 you have made in a month,” he explained.
He encouraged workers to join unions to strengthen their bargaining power against exploitative practices.
“As an example at NARETU, before even the Gazette of the NMW, at all employers, we negotiated last year, we implemented minimum wage where no employees need to earn less than N$3500, and those companies didn’t reduce their workforce or close,” he said.
Labour expert Herbert Jauch described the situation as an example of entrenched exploitation in Namibia’s job market.
“The new minimum wage is very moderate, and employers must implement it instead of threatening retrenchments. Employers must realise that their workers have needs that need to be covered through wages,” he said.
