2.6% wage increase for construction workers

Workers initially demanded 7%, but had to settle for less due to the impact of the pandemic.

21 June 2021 | Labour

Kenya Kambowe







RUNDU

Despite the Covid-19 pandemic’s negative impact on the economy, construction industry workers will see the minimum wage adjusted by 2.6% over the next two years.

This after the Construction Industries Federation of Namibia (CIF) and the Metal Allied Namibian Workers Union (Manwu) struck a substantive agreement on minimum wages and conditions of employment on 26 May.

According to Manwu Kavango East coordinator Richard Musohwa, the initial demand by the union was 7%; however, they had to settle for the 2.6% due to impact of the pandemic.

He said the mandate to sign on the lower increase was given by the workers.

“It was very hectic since last year when we started with the negotiations with the CIF... The workers themselves understood the situation of the Covid-19, therefore the mandate was given to the union to go ahead and sign the agreement of 2.6%, which is a two year deal,” Musohwa said.

He added that the in-service allowance remains the same.

About time

Musohwa said the agreement now needs to be gazetted by the line ministry in order for it to be effective; however, those employers who wish to implement the new minimum wages are not restricted from doing so.

The last time the minimum wage for the construction workers was adjusted was in 2018, when an agreement of 8% was gazetted.

A general labourer who received N$16.94 per hour will, after the gazetting of the new minimum wage, be entitled to an hourly rate of N$17.38 in the first year, and N$17.83 in the second year.

A clerk who is currently receives an hourly rate of N$23.32 is set to receive N$23.92 per hour in the first year and N$24.54 in the second year.

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