Niël Terblanché
The Agricultural Employers’ Association (AEA) has expressed strong objections to the new national minimum wage of N$18 per hour announced by the Ministry of Labour, Industrial Relations and Employment Creation.
According to the AEA’s principal officer, Danie van Vuuren, the Ministry’s announcement over the past weekend stated that the agricultural minimum wage will see a significant increase from 1 to 2025, starting at N$10 per hour plus in-kind benefits such as rations.
According to the ministry’s announcement, the phased implementation plan calls for raising the wage to N$14 an hour in 2026 and then to N$18 an hour in 2027, with adjustments scheduled every two years after that.
However, Van Vuuren, argues that these increases are unfeasible and that they would severely impact the agricultural sector.
Van Vuuren stressed that the AEA had requested an exemption from the national minimum wage in 2021, citing the unique nature of agricultural work, which includes housing, cash, and provisions for life needs.
He stated that the request was based on the understanding that agricultural employees receive various in-kind benefits alongside their cash wages.
“The Labour Ministry’s model, which phases in the wage increase over three years with drastic hikes, is simply unaffordable,” Van Vuuren stated.
He pointed out that the current wage of N$6 per hour would jump by 67% to N$10 per hour, followed by a 40% increase to N$14 per hour in the first year, and then another 22% increase to N$18 per hour in the second year.
The ongoing severe drought, which Van Vuuren described as the worst in a century and which has already prompted President Nangolo Mbumba to declare a state of emergency, further exacerbates the AEA’s concerns.
He argued that implementing such significant wage increases during this crisis is shortsighted and could exacerbate the challenges faced by the agricultural community.
The AEA has called for an urgent discussion with the labour ministry and other stakeholders within the Namibia Agricultural Labour Forum (NALF) to address these issues.
Van Vuuren cautioned that the proposed wage increases could potentially lead to job losses and jeopardize job creation and retention.
He said that the current Collective Agreement stipulates a minimum cash wage of N$6.00 per hour for entry-level agricultural employees, along with several in-kind benefits.
These include housing with sanitary and water facilities, electricity where available, and the option for employees to cultivate land or keep livestock.
Employers also have the option to provide food or rations valued at up to 35% of the employee’s basic wage or an additional cash allowance of at least N$650.00 per month.
Van Vuuren reiterated that the government’s push for wage increases could come at the expense of economic growth and job creation within the agricultural sector.
He said the AEA believes that a balanced approach, taking into account the unique aspects of agricultural employment and the current economic conditions, is necessary to ensure the sustainability of the industry.
