14% increase, or we strike - Meatco employees

Meatco employees are threatening to strike if their list of demands, which includes a 14% salary increase, are not met.

The employees yesterday held a peaceful demonstration and said there has been a delay in their salary negotiations since September 2022.

According to them, they were meant to receive an increase on 1 March.

A petition was handed over to Meatco CEO Mwilima Mushokabanji, threatening to strike if their demands are not met.

According to Namibia Food and Allied Workers Union’s (Nafau) Festus Shilombuelua, a dispute was registered on 26 May following a meeting that was held between the company and the union, where a 5% salary increase for three months was proposed, but then salaries must revert back to normal.

The dispute of interest was referred to the Office of the Labour Commissioner and conciliation is scheduled for 27 June. If the issue cannot be resolved, workers will vote for a strike.

“If the parties cannot reach an agreement, employees will stop work and embark on industrial action and we will not return to work until our demands are met," Shilombuelua said.

Dismayed

In the petition - which was read by Josef Kambala, chairperson of the shop stewards at Meatco - workers expressed their dismay regarding the delay of their salary increase in terms of a corrective agreement between the company and the union.

“We are supposed to receive salary increases on 1 March each year, followed by the finalisation of the wage negation between the union and the company and in terms of the recognition agreement, wage negation shall take place during September and October each year.”

Kambala said the Meatco directors did not give management the mandate to approve salary increases and, as a result, wage negotiations were delayed.

“The board does not recognise employees’ efforts and contributions toward the company and we are disappointed and condemning the board’s decision to withhold the salary increase.”

According to the petition, employees are demanding a 14% salary increase across the board as well as for housing allowance to be adjusted to N$1 000, clod allowance to increase with N$100 and that the employer’s medical aid contribution increase to 80%.

They are also demanding that 50% of the fixed-term contract employees be appointed to a permanent position, and that fixed-term contract employees’ hours be increased to 97.5 per month.

They are further asking that fixed-term contract employees be granted an annual bonus like other employees and be paid severance pay in accordance with the Labour Act when their contract ends.

Further demands include that the transport allowance for Katima Mulilo fixed-term contract employees follow the Namibia Bus and Taxi Association rate and that their contract be in line with the operation agreement signed between Meatco the Zambezi Meat Corporation.

‘No clue’

“The board has no clue what is happening at Meatco and they failed to monitor and assess the operations of the company,” Kambala said.

He added that the board is unable to make the right decisions that will take the company forward.

According to the petition, employees were only informed at a meeting held in March that the board passed a resolution that there would be no salary increases for the 2023/2024 financial year, because the company is not in the financial position to provide them.

To this, employees said they are not convinced that Meatco doesn’t have money for salary increases as more than 300 cattle are slaughtered per day on some occasions.

“We are suspecting that there is misappropriation of company funds and we are demanding investigations to be conducted to verify the utilisation of the company’s budget.”

Unqualified

Meanwhile, the employees claimed that certain managerial positions at the company are occupied by unqualified staff members, adding that this poses a problem for company operations.

They are urging the agriculture and public enterprises ministers to intervene in the matter.

Meatco suffered a loss of N$118 million during the past financial year, according to its annual report for 2022/2023.

This report, employees said, must also be shared with them and not just with stakeholders.

Meatco’s staff complement stood at 726 at the end of the financial year, the report said. Permanent staff totalled 574, while 152 staff members were employed on a fixed-term contract basis.