Martin Endjala
Trade unionists and labour experts are of the opinion that the national minimum wage, which was announced on Sunday by the Ministry of Labour, Industrial Relations, and Employment Creation, is not enough given the current high unemployment rate in the country.
On Sunday, the cabinet endorsed MLIREC to introduce a national minimum wage of N$18 per hour, effective January 2025.
According to labour expert Herbert Jauch, the proposed wage is equivalent to N$3000 per month if a worker completes 40 hours, which he said is an improvement compared to the N$2500 that many workers are receiving.
He said the N$3000 is not enough given the current economic trend, which does not favour low-income earners.
“The N$18 per hour wage for workers is a great move by the government, it will be an improvement, but it will not be a wage that will materialise all their basic needs. But given the current wage bracket of N$1500-N$2500 in the lower sector, it is an improvement,” said Jauch.
Jauch said that the government needs reinforcement in the low-paid sectors, explaining that these sectors are less represented by unions and are the most hard hit by the economic trend.
He added that unions alone will not be able to ensure compliance, hence the need for labour inspectors to ensure adherence to the proposed wages.
Jauch stated that employers frequently face the risk of terminating many low-sector employees.
He believes that the new proposed wage should have gone into effect right away because it would have improved the lives of those in the low-income sectors.
He suggested that the government needs to introduce a platform where low-income workers can report employers to the ministry if they do not pay their wages.
Jauch also suggests that the government provide a hotline number for workers to report issues related to wages.
The Trade Union Congress of Namibia (TUCNA) secretary general, Kavihuha Mahongora, said that all stakeholders now need to pull up their socks to ensure the successfulness of the implementation come the date of effect.
“We congratulate the government on this, we now need to pull together in one direction, and we need to create a debate around the adjustment of wages to align with the current inflation.
The inflation does not correspond to the current living standard. As role players in the industry, we need to get together and formulate a study on wages and the way forward,” said Mahongora.
Kavihuha urged communication between unions and employers to guarantee the success of all negotiations.
The Security Association of Namibia (SAN) national president, Dhiginina Uutaapama, said they welcome the move, however, he cautioned the government that it needs to be careful when making such a decision as the security industry cannot absorb a salary increment from 8% to 105%.
“I foresee a catastrophic event in our sector, and many people are going to lose jobs because our clients will not be able to afford such high rates given the high inflation.
We are already seeing our clients opting for digital to replace the human force that has become expensive,” said Uutaapama.
He said the sector will seek the ministry’s intervention to assist in phasing in the proposed wage increment over three years.
The ministry’s executive director, Lydia Indombo, has warned employers not to reduce workers’ salaries and that the labour law prohibits it.
The new wage, according to her, aims to boost low-income earners, lessen income inequality, and increase individual and household income for a decent standard of living.
The announcement was made on Sunday by MLIREC executive director, Lydia Indombo.
Indombo added that the NMW will be subject to a review two years after implementation.
In February 2021, minister Utoni Nujoma, appointed a Wages Commission to conduct a nationwide investigation in all industries and make recommendations for the proposed NMW.
This was going to apply to all employees, except related categories of employees who are exempted by the ministry’s wage order, and on related supplementary wage conditions of employment.
“The introduction of NMW does not replace the bargaining power as it aims to set a floor wage, especially for lower-paid employees.
It is prohibited for employers to reduce the wages of their employees and therefore employers who are currently paying more than the anticipated NNW, must not reduce the salaries of their workers to N$18 per hour. The NMW is barely minimum and not a ceiling wage,” Ndombo warned.
Indombo stated that the NMW will be phased in incrementally for over three years for domestic workers.
This means in the first year they will be paid N$12.02 per hour followed up by N$15.01 per hour in the second year and subsequently N$18 per hour in the third year.
Currently, domestic workers are paid N$9.03 per hour as per the wage order of domestic workers.
Meanwhile, employees in the agriculture sector who are paid a minimum of N$6 per hour plus pay in-kind as per the collective agreement, will be paid N$10 per hour in the first year, N$14 per hour in the second year and N$18 per hour in the third year, exclusive of in-kind payments.
A detailed notice of a government gazette will be issued in July.
Once implemented, Indombo believes that the NMW will improve the living standard of lower-paid workers, reduce income inequality, and alleviate poverty, thereby improving individual and household income.
