Martin Endjala
The fear of employers reducing the wages of employees amid the new national wage structure is rising but such changes could only be affected after an agreement was reached between workers’ unions and individual employers.
Job Munairo the general secretary of the National Union of Namibian Workers (NUNW), said the normal practice as per the law before any employer decides to cut employees salaries is still in effect.
He said this last week while responding to questions sent to him by the Windhoek Observer.
He said employers ought to first notify the labour commission or the union about their intention to cut workers’ salaries.
The labour commission will then request such an employer to open their books for investigation before approving such a request.
“No employer is allowed to cut employees’ salaries just like that, they must provide us with their reason such as financial constraints or restructuring. And, should any employer go ahead without this restructuring, the law is clear and they will be dealt with accordingly,” he said.
Munairo further explained there is no panic at the moment, and he remains optimistic that employers will abide by the law.
“During COVID-19 was the only time some companies reduced salaries of their workers, but that was done procedurally and all parties agreed,” he said.
Justina Jonas the general secretary of the Metal and Allied Namibia Workers (MAN), said that there hasn’t been any case of an employer cutting employees’ salaries wrongfully so far.
“Even during Covid-19 when some workers’ salaries were reduced, it was only in some sectors and it was communicated beforehand. The construction sector was not affected. It had an increment that really good year,” she pointed out.
Jonas said that until recently, Namibia had no national minimum wage. That was until the minimum wage of N$18 per hour policy that comes into effect next year in January was announced recently.
As a result, the new wage policy was gazetted this year and it is aligned with the required payment per hour by the ministry of labour.
Despite these concerns, she said the union remains optimistic that employers will follow the law and she does not anticipate any issues in that regard.
“The law is clear, and should we have such a case, the law will take its course and the guilty party will be punished,” she cautioned.
Jonas stated that an employer must first notify both the representative of the employees and the labour commission before cutting a worker’s salary.
Fears started rising after the deputy finance minister, Maureen Hinda-Mbuende made a call for severe punishment of employers who reduce employees’ salaries without their consent.
She said during an interview with the Windhoek Observer last week such employers must be brought to book and face the full wrath of the law.
Her call comes after public concerns about employers who might be tempted to use unscrupulous tactics to avoid paying employees salaries, following the new minimum wage structure for Namibia set at N$18 per hour that will come into effect in 2025.
“We all have an obligation to sustain peace and security and to contribute to the economic growth of the country. Being fair to your employers should be a modus operandi, that we pay fair wages,” she said.
She said the government should not need to regulate wages if the philosophy of the country is of a mindset that fair wages are being paid to workers.
With regards to the minimum wage, she said even the person who was getting paid a little bit more, finds their salaries being reduced.
“I think it should actually be ruled illegal and fraudulent if any employer reduces employees’ wages. Because you cannot just reduce my salary, why must the farm workers’ salary be reduced,” she argued.
She stated that it should be understood that the new minimum wage, is to help those that are earning below the breadline and to assist them to earn better wages.
She encouraged the public to assist anybody whose salary has been reduced, be it a domestic worker, be it a cleaner, be it a farm worker, be it a clerk, or those affected by the minimum wages that have been established.
She explained that such a person has a labour case to report, and it will be obligatory for the ministry of labour to hear such a case.
“Because packages cannot be reduced, even if you are demoted or a victim of restructuring because your cost of living does not get reduced,” she said.
Labour expert, Herbert Jauch said the Labour Act states very clearly that nobody can change conditions of employment unilaterally.
Therefore, any employer reducing wages without the prior agreement of the worker concerned commits an unfair labour practice.
The head labour inspector in the country, Shou-Henok Amukwa said the ministry has not received any cases of wage reduction so far.
He stated that any employer who reduces employees’ wages without reason will be dealt with by the law.
“Let me clarify something, reduction of wages ought to be communicated to all parties and the labour commission is mandated to approve such reduction only when the evidence submitted warrants such a reduction after a thorough investigation,” he explained.
Amukwa explained that all cases concerning wage cuts are investigated and only after investigations can they determine the force of action to be taken.
“Based on this it is fair to confirm that we haven’t had a scenario where wages were cut with no reason. It is our call to the public that if anyone thinks their wage was cut without their concern countrywide. To come and see us so we can look into it,” he said.
Amukwa firmly believes that the laws put in place are sufficient to bring to book those who contravene the labour law and people should report such cases.
“The one scenario I can share with you is when an employer decides not to pay an employee for the days that they were not at work. This is within the employer’s right. However, if there is a dispute, then both parties can approach an arbitrator to find a solution,” he explained.
