Guards' pay gazetted
All security companies must now pay the minimum wage agreed on in December, but only SAN-affiliated companies must give back pay too.
The long-awaited Government Gazette instructing all Namibian security companies to start paying the new minimum wage for security officers was published last week.
The new minimum wage was agreed in December last year between the Security Association of Namibia (SAN) and the unions.
In what has been an ongoing controversy since January, only SAN-affiliated companies were compelled to implement the agreed wages, which included a minimum wage increase of approximately 25%, from N$6.75 or N$7 to N$8.75, marking the first phase of the agreement.
The second phase of the agreement was only applicable for employees of SAN-affiliated companies, who have been employed for a year or more on 1 July 2017, and constituted an approximately 15% increase, from N$8.75 to N$10 per hour.
But, as of Friday, the ministry concluded the process of extending the collective agreement in the security industry, and the terms and conditions of employment contained in that agreement “now apply to all employees and employers in the industry,” a statement from the Ministry of Labour, Industrial Relations and Employment Creation stated.
Labour permanent secretary Bro-Mathew Shinguadja underscored yesterday that only SAN-affiliated companies were legally bound by the agreement prior to the gazetting of the agreement last week.
The ministry explained that any SAN members who have not yet implemented the new minimum wages have to ensure employees are compensated, backdated to January and July as was relevant.
“Members of SAN were to implement their agreement from the date they set themselves and if there are SAN members who have not implemented the agreement since 1 January 2017, employees have the right in terms of that agreement to claim whatever is due to them from that date,” Shinguadja told Namibian Sun.
The ministry also confirmed yesterday that for non-SAN-affiliated members, the “increment is only effective from 15 September 2017 and that means there will be no back pay. Back pay will only be applicable to the security officers employed by the companies who were part to the agreement, and that is if they never implemented it [collective agreement].”
The ministry explained that “this collective agreement is only extended to the entire industry as from 15 September 2017 and therefore it only becomes binding to non-parties (of SAN) effective the date of the extension.”
He referred to section 71 of the Labour Act and said that “to extend an agreement to non-members is a legal process which has to be managed and implemented in according with the Labour Act. Sight should not be lost; this is a legal mechanism that forces someone who was not a party to the agreement to be bound by it unlike the parties to it who have set the parameters themselves.”
SAN earlier this year said that the fact that only SAN-affiliated companies had to comply with the agreement, after a December strike was barely averted through their work with the unions, and the resulting agreement, had disadvantaged them in numerous ways.
SAN president Dries Kannemeyer said that while non-affiliated companies had been able to continue paying N$7 or less, SAN-affiliated companies struggled to absorb the additional costs without alienating customers or having to cut jobs.
Moreover, several members abandoned the association, preferring to continue paying the lower wages until the gazetting was concluded.
During the December negotiations, SAN warned that a survey among industry stakeholders had shown that the steep increase in wages would be unaffordable and would likely force companies to institute layoffs, as clients would be unable to handle the cost of the service that would inevitably trickle down to them.
“But nothing of this feedback was taken into consideration by the ministry or the unions. Any decrease in security manpower should be laid before labour and the union's doors,” Kannemeyer said.
Earlier this year, it was estimated that at least 150 out of a total of 180 security companies in the country, including SAN-affiliated companies, did not implement the new wages until last week's gazette.
The ministry earlier this year said the delay in gazetting the extension of the agreement was due to negligence on the part of SAN and the unions.
Shinguadja told Namibian Sun it was unclear why the application to extend the agreement had been delayed, when all were familiar with the processes of extending the agreements to the entire industry.
Forward and onwards
The ministry last week cautioned all employers in the industry that they are now legally bound to “be aware and comply with all the national labour laws, including this collective agreement.”
SAN's Kannemeyer yesterday said the industry-wide increase on wages would affect the cost of services.
“What I believe is going to happen is that security companies are now going to put through increases to their clients and we don't know how many clients are going to accept these. During our initial negotiations the permanent secretary of labour did indicate that government institutions will be able to give the necessary increases for companies providing security services to them.”
The ministry warned in their statement that “no security company will be eligible to provide security services to the State (at all levels) and its agencies and parastatals unless it is compliant with this agreement.”
The new minimum wage was agreed in December last year between the Security Association of Namibia (SAN) and the unions.
In what has been an ongoing controversy since January, only SAN-affiliated companies were compelled to implement the agreed wages, which included a minimum wage increase of approximately 25%, from N$6.75 or N$7 to N$8.75, marking the first phase of the agreement.
The second phase of the agreement was only applicable for employees of SAN-affiliated companies, who have been employed for a year or more on 1 July 2017, and constituted an approximately 15% increase, from N$8.75 to N$10 per hour.
But, as of Friday, the ministry concluded the process of extending the collective agreement in the security industry, and the terms and conditions of employment contained in that agreement “now apply to all employees and employers in the industry,” a statement from the Ministry of Labour, Industrial Relations and Employment Creation stated.
Labour permanent secretary Bro-Mathew Shinguadja underscored yesterday that only SAN-affiliated companies were legally bound by the agreement prior to the gazetting of the agreement last week.
The ministry explained that any SAN members who have not yet implemented the new minimum wages have to ensure employees are compensated, backdated to January and July as was relevant.
“Members of SAN were to implement their agreement from the date they set themselves and if there are SAN members who have not implemented the agreement since 1 January 2017, employees have the right in terms of that agreement to claim whatever is due to them from that date,” Shinguadja told Namibian Sun.
The ministry also confirmed yesterday that for non-SAN-affiliated members, the “increment is only effective from 15 September 2017 and that means there will be no back pay. Back pay will only be applicable to the security officers employed by the companies who were part to the agreement, and that is if they never implemented it [collective agreement].”
The ministry explained that “this collective agreement is only extended to the entire industry as from 15 September 2017 and therefore it only becomes binding to non-parties (of SAN) effective the date of the extension.”
He referred to section 71 of the Labour Act and said that “to extend an agreement to non-members is a legal process which has to be managed and implemented in according with the Labour Act. Sight should not be lost; this is a legal mechanism that forces someone who was not a party to the agreement to be bound by it unlike the parties to it who have set the parameters themselves.”
SAN earlier this year said that the fact that only SAN-affiliated companies had to comply with the agreement, after a December strike was barely averted through their work with the unions, and the resulting agreement, had disadvantaged them in numerous ways.
SAN president Dries Kannemeyer said that while non-affiliated companies had been able to continue paying N$7 or less, SAN-affiliated companies struggled to absorb the additional costs without alienating customers or having to cut jobs.
Moreover, several members abandoned the association, preferring to continue paying the lower wages until the gazetting was concluded.
During the December negotiations, SAN warned that a survey among industry stakeholders had shown that the steep increase in wages would be unaffordable and would likely force companies to institute layoffs, as clients would be unable to handle the cost of the service that would inevitably trickle down to them.
“But nothing of this feedback was taken into consideration by the ministry or the unions. Any decrease in security manpower should be laid before labour and the union's doors,” Kannemeyer said.
Earlier this year, it was estimated that at least 150 out of a total of 180 security companies in the country, including SAN-affiliated companies, did not implement the new wages until last week's gazette.
The ministry earlier this year said the delay in gazetting the extension of the agreement was due to negligence on the part of SAN and the unions.
Shinguadja told Namibian Sun it was unclear why the application to extend the agreement had been delayed, when all were familiar with the processes of extending the agreements to the entire industry.
Forward and onwards
The ministry last week cautioned all employers in the industry that they are now legally bound to “be aware and comply with all the national labour laws, including this collective agreement.”
SAN's Kannemeyer yesterday said the industry-wide increase on wages would affect the cost of services.
“What I believe is going to happen is that security companies are now going to put through increases to their clients and we don't know how many clients are going to accept these. During our initial negotiations the permanent secretary of labour did indicate that government institutions will be able to give the necessary increases for companies providing security services to them.”
The ministry warned in their statement that “no security company will be eligible to provide security services to the State (at all levels) and its agencies and parastatals unless it is compliant with this agreement.”
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