Hertta-Maria Amutenja
Employers in the fuel retail, security, and hospitality sectors have issued retrenchment notices and threatened to alter employees’ benefits in response to the national minimum wage (NMW) implementation order.
The Mineworkers Union of Namibia (MUN) has described this as retaliatory actions by certain employers.
The MUN’s general secretary, George Ampweya revealed that the union is aware of one such employer, Engen Swakopmund Truck Port.
“The employer has informed employees about plans to remove the housing allowance of about N$1 400 to increase their wages to the minimum required level. Additionally, they have proposed removing the annual bonus, which we believe is equivalent to 100 percent of one month’s pay,” he said.
According to Ampweya, the company has issued retrenchment options to employees who do not agree to the new terms, effectively leaving them with limited choices.
“This approach leaves employees between a rock and a hard place. They are forced to either accept the unfair conditions or face the threat of losing their jobs,” he said.
The NMW came into effect on 1 January and was introduced to gradually enhance workers’ socio-economic conditions and mandate employers to pay a minimum wage of N$18 per hour.
Ampweya has urged employers to support the government’s efforts to improve the economic conditions of workers.
“The purpose of this wage order is to gradually enhance workers’ socio-economic conditions through increased wages, thereby improving the living standards of Namibian workers,” said Ampweya.
He also highlighted that the Namibian Labour Act outlines the procedures for employers facing genuine challenges in implementing the NMW.
“We urge employers to follow the prescribed mechanisms in the Labour Act instead of adopting an uncooperative stance,” he said.
Labour expert, Herbert Jauch noted that employers must acknowledge that the NMW is a legally binding obligation.
“It is advisable to point out to the employer that the minimum wage is compulsory and needs to be implemented,” Jauch said.
He said that if an employer refuses to comply, employees can file a complaint at the nearest labour office.
“If the employer says they don’t want to pay it, and if you don’t like it, you can go look for employment elsewhere, then employees have the right to lay a complaint with the nearest labour office,” Jauch explained.
Jauch further stated that altering employment conditions to the detriment of employees constitutes unfair labour practices.
“Employers may not change employment conditions for the worse. That would be regarded as unfair labour practices,” he said.
Candidate Legal Practitioner Sam-Leon Nakantimba emphasised that employees have legal recourse in cases of non-compliance or retaliation.
“The Labour Act provides clear mechanisms for employees to report non-compliance, including arbitration, which offers a faster and cost-effective way to resolve disputes. Since the minimum wage is a basic condition of employment, it is enforceable under all employment contracts,” the lawyer explained.
Regarding exemptions, the lawyer noted that employers must submit detailed financial evidence to the Ministry of Labour if they face financial challenges.
“Exemptions, if granted, are temporary and subject to strict review. Employers are also obligated to inform employees about any applications,” the lawyer added.
The lawyer also warned against unilateral changes to employment terms.
“Unilateral alterations to employment conditions, such as reducing hours or benefits, could breach contracts and are legally impermissible. Employers must negotiate changes with employees and comply with legal standards,” they said.
The NMW was introduced to alleviate poverty and ensure fair remuneration for workers in sectors with historically low wages. It applies to all Namibian workers, with the government aiming to address wage disparities across the country.
While a profit margin adjustment was made in 2015 when the minimum wage was introduced, no such adjustment has been announced for the current 250% wage increase.
Stakeholders, including the Fuel Retail Association, have warned that the lack of intervention by the Ministry of Mines and Energy (MME) could lead to job losses and economic strain on the industry.
Last week the Ministry of Labour’s acting executive director, David Igonda, told the Windhoek Observer that 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,” Igonda explained.
He added that no employer should retrench or close their business without notifying the ministry.
Questions sent to the Ministry of Labour, Industrial Relations, and Employment Creation and the Tourism and Allied Workers Union regarding the implementation of the NMW and the complaints raised by MUN were not responded to by the time of publication.
