NHE salary increase only possible with ‘improved bottom line’
The National Housing Enterprise (NHE) cannot increase salaries as demanded by striking workers - unless the company’s financial fortunes improve, CEO Gisbertus Mukulu said.
Workers, through the Public Service Union of Namibia (PSUN), are demanding better pay and have downed tools since last week after a voting process resulted in favour of a strike.
Mukulu, speaking on The Evening Review on Monday, said NHE’s finances took a knock during the Covid-19 pandemic when not much business could be conducted, a situation it has not fully recovered from.
“What is key for us to turn around the company [is that] we need to work and produce results which will - in the end - enable the governing structure, which is the board, to say ‘we are happy and we are now in the position to give you something’. That is where we are at the moment,” he said on the Namibia Media Holdings show.
Employees are demanding a 7% salary increase or a N$10 000 once-off payment per individual. “NHE is not in the position to entertain increments, but if the bottom line improves, of course the company will then be in a better position to give something,” Mukulu said.
Retaining jobs
He added that if the company was to concede to the demands, it may end up retrenching workers to survive.
“What is important for us is being able to retain our employees’ jobs. They would then be able to have bread on the table and sustain their families. That is the issue that led to the deadlock and hence the strike,” Mukulu said.
Employees last received an increase in 2019 and deputy secretary-general of PSUN, Ujama Kaahangoro, said the board has not communicated with the union for a long time, and no mandate has been given to management to negotiate with workers.
The strike began on Friday, 24 February, and continues to date - despite a new board being announced that same day.
“We are excited for the new board, especially the skillset they will be bringing on board,” Mukulu said at the time.
Minister of urban and rural development Erastus Uutoni appointed Socrates Dias, Oshoveli Hiveluah, Erikson Mwanyekange, Adda Angula, Ritaa Khiba (deputy chairperson) and Toska Sem (chairperson).
Workers, through the Public Service Union of Namibia (PSUN), are demanding better pay and have downed tools since last week after a voting process resulted in favour of a strike.
Mukulu, speaking on The Evening Review on Monday, said NHE’s finances took a knock during the Covid-19 pandemic when not much business could be conducted, a situation it has not fully recovered from.
“What is key for us to turn around the company [is that] we need to work and produce results which will - in the end - enable the governing structure, which is the board, to say ‘we are happy and we are now in the position to give you something’. That is where we are at the moment,” he said on the Namibia Media Holdings show.
Employees are demanding a 7% salary increase or a N$10 000 once-off payment per individual. “NHE is not in the position to entertain increments, but if the bottom line improves, of course the company will then be in a better position to give something,” Mukulu said.
Retaining jobs
He added that if the company was to concede to the demands, it may end up retrenching workers to survive.
“What is important for us is being able to retain our employees’ jobs. They would then be able to have bread on the table and sustain their families. That is the issue that led to the deadlock and hence the strike,” Mukulu said.
Employees last received an increase in 2019 and deputy secretary-general of PSUN, Ujama Kaahangoro, said the board has not communicated with the union for a long time, and no mandate has been given to management to negotiate with workers.
The strike began on Friday, 24 February, and continues to date - despite a new board being announced that same day.
“We are excited for the new board, especially the skillset they will be bringing on board,” Mukulu said at the time.
Minister of urban and rural development Erastus Uutoni appointed Socrates Dias, Oshoveli Hiveluah, Erikson Mwanyekange, Adda Angula, Ritaa Khiba (deputy chairperson) and Toska Sem (chairperson).
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