Pay hike for construction industry
The minimum wage had to be increased by 10% after the first year.
The Construction Industries Federation of Namibia and the Metal and Allied Namibian Workers Union recently agreed to a 10% increase in the minimum wage that was initially signed on 24 July 2015 and promulgated on 31 December 2015, despite large-scale retrenchments in the sector.
The Government Gazette No. 5917 stipulated the adjustment to the minimum wage, which had to be increased by 10% for the first year (i.e. from 1 January 2016 to 31 December 2016) and by a further 10% for the subsequent year (i.e. 1 January 2017 and 31 December 2017). The minimum wage for a labourer in the construction sector is now N$16.04, explained Construction Industries Federation general manager Bärbel Kirchner.
The promulgated collective agreement in Government Gazette No. 5917 covers minimum wages for labourers and different categories of skilled and semi-skilled artisans, health and safety standards, minimum protective clothing, minimum productivity levels, living away allowances and service allowance, according to Kirchner.
“We realise that during an economic slowdown, it would be difficult for employers to further increase the minimum wages in the construction sector.
“Unavailability of work in the sector and serious cash-flow crises have forced businesses to cut costs and make retrenchments.
“In order to adhere to the legislated minimum wages and minimum employment conditions, with limited scope to reduce salaries, businesses cannot avoid but retrench more individuals,” she said.
“However, as the nature of our industry is cyclical, and as we will see better times again, it is important that we remain cognisant of the legislation that needs to be adhered to in our industry.
“Companies that operate in Namibia's construction industry must be aware that adherence to the minimum wages and the minimum conditions as promulgated in the Government Gazette 5917 remains a requirement,” added Kirchner.
“This will ensure that despite a serious downturn in our industry, optimal work conditions are maintained. This will ensure the avoidance of costs differentiation to the detriment of workers in the industry and would help the industry in getting closer to a more equal playing field. Increasing the cash flow in our industry, use of local Namibian capacity for all upcoming projects, would definitely alleviate the situation and would help to avoid retrenchments in our industry,” she concluded.
STAFF REPORTER
The Government Gazette No. 5917 stipulated the adjustment to the minimum wage, which had to be increased by 10% for the first year (i.e. from 1 January 2016 to 31 December 2016) and by a further 10% for the subsequent year (i.e. 1 January 2017 and 31 December 2017). The minimum wage for a labourer in the construction sector is now N$16.04, explained Construction Industries Federation general manager Bärbel Kirchner.
The promulgated collective agreement in Government Gazette No. 5917 covers minimum wages for labourers and different categories of skilled and semi-skilled artisans, health and safety standards, minimum protective clothing, minimum productivity levels, living away allowances and service allowance, according to Kirchner.
“We realise that during an economic slowdown, it would be difficult for employers to further increase the minimum wages in the construction sector.
“Unavailability of work in the sector and serious cash-flow crises have forced businesses to cut costs and make retrenchments.
“In order to adhere to the legislated minimum wages and minimum employment conditions, with limited scope to reduce salaries, businesses cannot avoid but retrench more individuals,” she said.
“However, as the nature of our industry is cyclical, and as we will see better times again, it is important that we remain cognisant of the legislation that needs to be adhered to in our industry.
“Companies that operate in Namibia's construction industry must be aware that adherence to the minimum wages and the minimum conditions as promulgated in the Government Gazette 5917 remains a requirement,” added Kirchner.
“This will ensure that despite a serious downturn in our industry, optimal work conditions are maintained. This will ensure the avoidance of costs differentiation to the detriment of workers in the industry and would help the industry in getting closer to a more equal playing field. Increasing the cash flow in our industry, use of local Namibian capacity for all upcoming projects, would definitely alleviate the situation and would help to avoid retrenchments in our industry,” she concluded.
STAFF REPORTER
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