800 Meatco workers face proposed 50% salary cuts

Nearly 800 Meat Corporation of Namibia (Meatco) employees could face salary reductions of up to 50% as the state-owned meat processor considers emergency cost-cutting measures following the suspension of international beef exports due to the foot-and-mouth disease (FMD) outbreak.Meatco, which has suspended slaughter operations, says its N$15 million monthly wage bill has become increasingly unsustainable after losing access to international markets that normally account for approximately 85% of its earnings.Management is consulting the Namibia Food and Allied Workers Union (NAFAU) on proposed salary adjustments, reduced working hours and voluntary separation packages as it struggles to maintain operations and protect jobs.“The corporation's monthly wage bill of approximately N$15 million has become increasingly unsustainable in the absence of its principal revenue streams,” Meatco spokesperson Undamuje Hambira said in a statement yesterday.The corporation was expected to hold a management meeting to discuss the impact of the outbreak on its operations and employees, including proposed salary adjustments to two-thirds or 50% of current levels.The meeting was also expected to consider changes to working arrangements, cost-containment measures and feedback from earlier engagements with employees.Meatco's immediate challenge is securing sufficient cash to procure livestock while maintaining its workforce and keeping the business financially viable.“Other options being explored include voluntary separation packages for interested employees, subject to the availability of funding, a payment holiday on the corporation's financing facility with the Development Bank of Namibia and other financial relief measures,” Hambira said.The corporation has also indicated that more extensive restructuring, possible workforce reductions and temporarily placing certain operations under care and maintenance could be considered if the financial crisis persists.At the time of going to press yesterday, Namibian Sun had not received an update on the meeting's outcome.Legal optionsSection 12(6) of the Labour Act provides for employers, subject to contractual and collective-agreement provisions, to reduce ordinary working hours for operational reasons, with a corresponding reduction in remuneration of up to 50% of basic wages for an initial period not exceeding three months.“This is among the legally recognised mechanisms available for managing exceptional operational circumstances,” Hambira said.Meatco stressed that the proposals remain under consideration and that no final decisions have been taken on salary reductions, restructuring or possible workforce cuts.“These scenarios do not constitute decisions already taken. Any measures ultimately pursued will be informed by the corporation's financial circumstances, applicable legal requirements and the relevant consultation and governance processes,” she said.The corporation maintains that its priority is to remain operational, protect as many jobs as possible and restore financially sustainable slaughtering and export activities.“However, maintaining the existing cost structure without access to international export revenue is not financially sustainable.“All matters remain under consideration and consultation with NAFAU, the board of directors and the shareholder, with a view to finding an equitable and sustainable response to the unprecedented circumstances facing the corporation,” Hambira said.N$2.4bn industry lossesMeatco's financial difficulties form part of a wider crisis affecting Namibia's livestock industry, with restrictions on animal movements, slaughtering and exports threatening farmers, abattoirs, transport operators and suppliers.The Namibia Agricultural Union (NAU) estimates that the FMD outbreak could result in approximately N$2.4 billion in cash losses across the livestock value chain over six months, equivalent to an estimated N$13 million daily.The projected losses include N$1.38 billion in primary production expenses and debt repayments, N$378 million in abattoir fixed costs and N$331 million from reduced export slaughtering.The union has warned that approximately 52 000 jobs south of the Veterinary Cordon Fence are at risk, supporting an estimated 200 000 dependents.The outbreak was confirmed in the Karasburg veterinary district on 23 September 2026, prompting the suspension of Namibia's internationally recognised FMD-free status for the affected zone and restrictions on livestock and meat exports.The restrictions have disrupted access to major international markets, including the European Union, China, South Africa and the United States, exposing the vulnerability of Namibia's export-dependent livestock industry.

800 Meatco workers face proposed 50% salary cuts

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Namibian Sun 2026-11-12

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800 Meatco workers face proposed 50% salary cuts

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Namibian Sun 2026-11-12

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