Niël Terblanché
The Namibian Employers Federation (NEF) have expressed substantial concerns regarding the recently announced National Minimum Wage (NMW) of N$18 per hour, set to be implemented from 1 January 2025.
The move has been criticised as premature and unilateral, with calls for a more consultative approach.
Elia Shikongo, the president of the NEF, expressed disappointment over the introduction of the NMW, calling it a hasty decision by the Minister of Labour, Industrial Relations and Employment Creation, Uutoni Nujoma.
Shikongo argued that the wage order should be reversed and stressed the need for further deliberations.
He pointed out that the NEF’s submission on the matter had not been adequately considered.
“The issuance of a wage order by the Minister is seen as premature and unilateral. We believe this decision requires broader social dialogue and a legislative process involving both houses of parliament,” Shikongo said in a statement.
He called for the drafting of a bill that would undergo an effective process of tripartite consultations and negotiations before being tabled in Parliament.
The NEF’s stance was preceded by a similar objection from the Agricultural Employers Association (AEA) earlier this week.
Danie van Vuuren, principal officer of the AEA, described the wage order as unfeasible and warned of its severe impact on the agricultural sector.
Van Vuuren highlighted the drastic phased increases in wages, which are set to rise from the current N$6 per hour to N$18 per hour over three years.
He argued that such significant hikes are unaffordable, especially during the current severe drought conditions, which have led to a State of Emergency declared by President Nangolo Mbumba.
“The Labour Ministry’s model, which phases in the wage increase over three years, with drastic hikes, is simply unaffordable,” Van Vuuren stated.
He added that implementing these increases during the worst drought in a century 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 concerns.
Van Vuuren warned that the proposed wage increases could lead to job losses and hinder economic growth within the agricultural sector.
He emphasised the need for a balanced approach that considers the unique aspects of agricultural employment and the current economic conditions.
“The government’s push for wage increases could come at the expense of economic growth and job creation within the agricultural sector,” he said.
Both the NEF and AEA are advocating for greater stakeholder engagement and a more measured approach to the implementation of the NMW.
Both stated that any decision on wage increases should be made with consideration of the broader economic implications and the sustainability of affected industries.
