Minimum wage in the construction sector
Minimum wage in the construction sector

Minimum wage in the construction sector

Other benefits for employees in the sector include a service allowance equal to 150 hours of his or her wage.
Phillepus Uusiku
STAFF REPORTER

The collective agreement as has been negotiated between the Construction Industries Federation of Namibia (CIF) and Metal and Allied Workers Union (MANWU), and signed on 28 May 2021, has now been published in Government Gazette No. 7675 of 2 November 2021. This makes the conditions as stipulated in the Collective Agreement applicable and mandatory for everyone operating in the sector. The collective agreement becomes effective on the date of promulgation.

The most significant change was the increase in the minimum wage payable, which is 2.6% for the first year, and 2.6% for the second year. This increase comes at the time, when there had been no increase since 2018. The basis of the increase for the respective categories are the minimum wages as had been determined in the Government Gazette No. 6567, dated 11 April 2018. The current minimum wage payable in the industry as per Government Gazette 7675 is therefore N$17.38 per hour.

Other benefits for employees in the sector, as per the employment categories listed in the collective agreement, include a service allowance equal to 150 hours of his or her wage, which is to be paid as part of the December remuneration before the commencement of annual leave during December.

It is also mandatory that all employees, for whom minimum wages payable are prescribed as per the agreement, are registered by the employer with the Namibian Building Workers Pension Fund (NBWPF). Alternatively, employers can offer pension and retirement benefits that provide for the same as the NBWPF, or indeed better benefits.

Bärbel Kirchner, general manager of the CIF says: “We are happy that our negotiated collective agreement for the construction sector has now been gazetted. This will ensure that there is a level-playing field with regard to wages in our sector; it will minimise the impact of labour costs as a differentiating factor when bidding for contracts.”

“We believe that the increase is within reason considering the current economic environment. It would simply make no sense to increase the minimum wage payable beyond the negotiated level, if employers cannot longer afford an increase. There is a fine line to consider, where an increase can improve the livelihood of one, yet might lead to the retrenchment of another. From the CIF’s perspective, we feel, that at current times, we need to ensure that as many persons possible remain employed. Therefore, we think that since there had been no increase since 2018, that a 2.6% increase, is reasonable”.

Regulation

Conditions for both the employer and the employee will improve once the industry has been regulated through the establishment of a construction council and every effort has been made to optimise the procurement system in favour of maximum engagement of Namibian resources. “Our sector has seen large-scale retrenchments, yet with strategic intent by our government and united, deliberate and conscious efforts, we can work towards a turnaround and improve the performance of our sector to the benefit of our businesses and employees”.

Justina Jonas Emvula, secretary general of MANWU says: “The construction sector since 2016, has been really under pressure, the workers persist to feel financial pressure as prices of basic needs, such as food, petrol, continue increasing. Since 2018, no increasement has been given to the workers, and looking at the situation of the pandemic we are in now, this increasement is accepted by the workers with the view that it can make a difference even though it may not address all the workers’ needs.

“It is our view that, the construction sector has potential to grow. We believe that the sector has full capacity to perform any kind of work available. The limitation of not awarding projects to local contractors is increasing high unemployment and precarious work in the sector. Therefore, our government and private sector clients, should listen to us and start prioritising local contractors to boost our local economy.”

“We therefore calling all contractors and their employees to collectively work together, we understand the frustration of lack of jobs or jobs which are not sustainable, but this increase will make a difference, while we are busy to engage those in power to start prioritising local contractors and the immediate implementation of the Construction Council”.

Comments

Namibian Sun 2024-05-18

No comments have been left on this article

Please login to leave a comment

Premier League: Manchester United 3 vs 2 Newcastle | Brighton 1 vs 2 Chelsea LaLiga: Real Sociedad 1 vs 0 Valencia | Almería 0 vs 2 Barcelona | Las Palmas 2 vs 2 Real Betis | Celta Vigo 2 vs 1 Athletic Club | Getafe 0 vs 3 Atletico Madrid | Sevilla 0 vs 1 Cadiz | Rayo Vallecano 2 vs 1 Granada SerieA: Fiorentina 2 vs 2 Napoli European Championships Qualifying: Southampton 3 vs 1 West Bromwich Albion | Leeds United 4 vs 0 Norwich City English Championship: Southampton 3 vs 1 West Bromwich Albion | Leeds United 4 vs 0 Norwich City Katima Mulilo: 10° | 31° Rundu: 10° | 30° Eenhana: 12° | 31° Oshakati: 13° | 31° Ruacana: 12° | 31° Tsumeb: 14° | 29° Otjiwarongo: 12° | 27° Omaruru: 13° | 30° Windhoek: 12° | 27° Gobabis: 13° | 27° Henties Bay: 19° | 33° Wind speed: 41km/h, Wind direction: NE, Low tide: 06:32, High tide: 12:50, Low Tide: 18:28, High tide: 00:56 Swakopmund: 20° | 23° Wind speed: 30km/h, Wind direction: SE, Low tide: 06:30, High tide: 12:48, Low Tide: 18:26, High tide: 00:54 Walvis Bay: 22° | 32° Wind speed: 30km/h, Wind direction: SE, Low tide: 06:30, High tide: 12:47, Low Tide: 18:26, High tide: 00:53 Rehoboth: 12° | 27° Mariental: 16° | 29° Keetmanshoop: 17° | 29° Aranos: 16° | 29° Lüderitz: 19° | 35° Ariamsvlei: 16° | 31° Oranjemund: 14° | 31° Luanda: 24° | 28° Gaborone: 13° | 27° Lubumbashi: 11° | 27° Mbabane: 11° | 23° Maseru: 8° | 23° Antananarivo: 14° | 24° Lilongwe: 15° | 26° Maputo: 19° | 26° Windhoek: 12° | 27° Cape Town: 15° | 20° Durban: 16° | 24° Johannesburg: 15° | 24° Dar es Salaam: 24° | 32° Lusaka: 15° | 26° Harare: 12° | 26° Currency: GBP to NAD 23.01 | EUR to NAD 19.73 | CNY to NAD 2.51 | USD to NAD 18.15 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.3 | EGP to NAD 0.38 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.7 | ZWL to NAD 0.04 | BRL to NAD 3.55 | RUB to NAD 0.2 | INR to NAD 0.22 | USD to DZD 134.35 | USD to AOA 847.42 | USD to BWP 13.49 | USD to EGP 46.86 | USD to KES 130.48 | USD to NGN 1467 | USD to ZAR 18.15 | USD to ZMW 25.45 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 79530.63 Up +0.03% | Namibian Stock Exchange (NSX) Overall Index 1754.58 Up +0.81% | Casablanca Stock Exchange (CSE) MASI 13426.13 Up +0.11% | Egyptian Exchange (EGX) 30 Index 26142.84 Up +3.27% | Botswana Stock Exchange (BSE) DCI 9151.06 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 414.72/OZ UP +1.55% | Copper US$ 5.04/lb UP +4.12% | Zinc US$ 3 059.30/T UP 0.11% | Brent Crude Oil US$ 84.28/BBP UP +0.60% | Platinum US$ 1 084.88/OZ UP +2.19% Sport results: Premier League: Manchester United 3 vs 2 Newcastle | Brighton 1 vs 2 Chelsea LaLiga: Real Sociedad 1 vs 0 Valencia | Almería 0 vs 2 Barcelona | Las Palmas 2 vs 2 Real Betis | Celta Vigo 2 vs 1 Athletic Club | Getafe 0 vs 3 Atletico Madrid | Sevilla 0 vs 1 Cadiz | Rayo Vallecano 2 vs 1 Granada SerieA: Fiorentina 2 vs 2 Napoli European Championships Qualifying: Southampton 3 vs 1 West Bromwich Albion | Leeds United 4 vs 0 Norwich City English Championship: Southampton 3 vs 1 West Bromwich Albion | Leeds United 4 vs 0 Norwich City Weather: Katima Mulilo: 10° | 31° Rundu: 10° | 30° Eenhana: 12° | 31° Oshakati: 13° | 31° Ruacana: 12° | 31° Tsumeb: 14° | 29° Otjiwarongo: 12° | 27° Omaruru: 13° | 30° Windhoek: 12° | 27° Gobabis: 13° | 27° Henties Bay: 19° | 33° Wind speed: 41km/h, Wind direction: NE, Low tide: 06:32, High tide: 12:50, Low Tide: 18:28, High tide: 00:56 Swakopmund: 20° | 23° Wind speed: 30km/h, Wind direction: SE, Low tide: 06:30, High tide: 12:48, Low Tide: 18:26, High tide: 00:54 Walvis Bay: 22° | 32° Wind speed: 30km/h, Wind direction: SE, Low tide: 06:30, High tide: 12:47, Low Tide: 18:26, High tide: 00:53 Rehoboth: 12° | 27° Mariental: 16° | 29° Keetmanshoop: 17° | 29° Aranos: 16° | 29° Lüderitz: 19° | 35° Ariamsvlei: 16° | 31° Oranjemund: 14° | 31° Luanda: 24° | 28° Gaborone: 13° | 27° Lubumbashi: 11° | 27° Mbabane: 11° | 23° Maseru: 8° | 23° Antananarivo: 14° | 24° Lilongwe: 15° | 26° Maputo: 19° | 26° Windhoek: 12° | 27° Cape Town: 15° | 20° Durban: 16° | 24° Johannesburg: 15° | 24° Dar es Salaam: 24° | 32° Lusaka: 15° | 26° Harare: 12° | 26° Economic Indicators: Currency: GBP to NAD 23.01 | EUR to NAD 19.73 | CNY to NAD 2.51 | USD to NAD 18.15 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.3 | EGP to NAD 0.38 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.7 | ZWL to NAD 0.04 | BRL to NAD 3.55 | RUB to NAD 0.2 | INR to NAD 0.22 | USD to DZD 134.35 | USD to AOA 847.42 | USD to BWP 13.49 | USD to EGP 46.86 | USD to KES 130.48 | USD to NGN 1467 | USD to ZAR 18.15 | USD to ZMW 25.45 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 79530.63 Up +0.03% | Namibian Stock Exchange (NSX) Overall Index 1754.58 Up +0.81% | Casablanca Stock Exchange (CSE) MASI 13426.13 Up +0.11% | Egyptian Exchange (EGX) 30 Index 26142.84 Up +3.27% | Botswana Stock Exchange (BSE) DCI 9151.06 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 414.72/OZ UP +1.55% | Copper US$ 5.04/lb UP +4.12% | Zinc US$ 3 059.30/T UP 0.11% | Brent Crude Oil US$ 84.28/BBP UP +0.60% | Platinum US$ 1 084.88/OZ UP +2.19%