Construction workers get mandatory pension cover

Construction firms will be required to provide pension cover for workers under a new collective agreement between the Construction Industries Federation of Namibia (CIF) and the Metal and Allied Namibian Workers Union (MANWU).

The agreement, signed on 29 January, was extended to all employers and employees in the construction industry by Justice and Labour Relations Minister Fillemon Immanuel under the Labour Act, 2007, and published in Government Gazette No. 9010 on 1 September.

Under the agreement, employers must apply for membership of the Namibia Building Workers Pension Fund (NBWPF) for employees covered by the prescribed minimum wages, regardless of whether they already earn above those minimum rates.

Employers will, however, be exempt if they already provide a pension or retirement fund offering the same or better benefits.

The agreement also protects workers during retrenchments, requiring employers to issue a benefit statement with the package. This allows employees to decide whether to withdraw their contributions or leave them in the fund.

The pension requirement forms part of a two-year agreement introducing new minimum wages and employment conditions across the construction industry.

Labourers and workers will have a minimum wage of N$20.43 per hour in the first year, rising to N$21.45 in the second year. Electricians will receive N$43.16 per hour in the first year and N$45.31 in the second, while carpenters will move from N$45.44 to N$47.72.

Master craftsmen will receive N$54.16 per hour in the first year and N$56.87 in the second, while leading-hand steel fixers and welders will receive the highest rates of N$60.09 and N$63.10 per hour, respectively.

Workers will also receive a service allowance equivalent to 155 hours of their wage, payable with December remuneration. The allowance is calculated pro rata for employees who have not completed a full year of service, although workers dismissed for gross misconduct will not qualify.

For employees required to stay away from their employment base overnight, the agreement provides a living-away allowance equal to 15% of their hourly wage, with 7.5% allocated for food and 7.5% for inconvenience.

Employers must also provide accommodation, ablution facilities and water. Where travel between the home base and work site exceeds three hours of actual driving time per day, workers must receive an allowance equal to 50% of their hourly wage for the additional travel time.

The agreement further requires employers to provide protective clothing, including two pairs of overalls annually and safety boots every two years, or sooner if worn out. Other equipment such as hard hats, reflective vests, safety glasses, earplugs and respirators must be supplied where required.

Productivity standards have also been introduced for several trades. However, employers may not reduce workers below the minimum wage for failing to meet targets and must first provide additional training before disciplinary or incapacity procedures.

The agreement provides training leave for shop stewards and requires unresolved disputes to be referred to arbitration under the labour commissioner.

Monitoring compliance

MANWU regional coordinator for the Kavango and Zambezi regions, Musohwa Matengu, told Namibian Sun last week that enforcement would be critical to ensuring workers actually benefit from the new conditions.

“Construction employees, they are just like other employees. They are required for pension,” Matengu said.

He said labour inspections should verify whether employers are complying with pension requirements, minimum wages and other conditions contained in the agreement.

Matengu said workers should also be informed about their rights and encouraged to raise concerns when employers fail to provide the prescribed benefits.

He said unions have a role to play in monitoring implementation and assisting workers where employers do not comply with the agreement.

“The employer has to introduce [pension] to his employees for them to have something after their term of work,” he said.

Matengu said the agreement should therefore translate into tangible benefits for construction workers, rather than remain a set of conditions that employers and workers are merely expected to acknowledge.