Increases in construction sector still to be gazetted
With an agreed future increase of 5.6% on minimum wage payable the deadlock of negotiations between the CIF and Manwu has been resolved.
The Construction Industries Federation of Namibia (CIF) and the Metal and Allied Namibian Workers Union (Manwu) have signed a collective agreement which includes the future increase on minimum wage payable in the industry, which will be 5.6% for selected job categories in the construction sector.
At this stage it is not clear when the increase on minimum wage payable will become effective, the CIF said in a statement.
In order for the increase of minimum wage payable and the minimum employment conditions to be implemented, the minister of labour, industrial relations and employment creation, Erkki Nghimtina, has to promulgate the extension of the collective agreement, and therefore the agreed minimum wage payable and minimum employment conditions, to the entire construction sector, the statement says.
“As the collective agreement becomes effective on the date of promulgation, the date of when the increase of minimum wages payable, is not determined as of yet.”
According to the CIF, the duration of the process - from the signing of the collective agreement to the date of promulgation - normally takes some time.
“It can be anticipated that the increase on the minimum wage payable will come into force during the first quarter of 2018,” the federation says.
Until that time, the currently gazetted minimum wage payable of N$16.04 per hour and minimum employment conditions will remain applicable.
With an agreed future increase of 5.6% on minimum wage payable the deadlock of negotiations between the CIF and Manwu has been resolved.
Negotiations
The CIF, representing employers in the construction sector, says it wasn't in the position to agree to the demands of the union. The federation maintained that the entire sector would be affected if the increases of the minimum wage payable, were to be increased unreasonably high.
Manwu initially demanded increase of 15% on minimum wage payable. Additional demands for minimum employment conditions meant that the overall demand constituted an increase of over 70%, the CIF says.
“The construction sector had been hit severely by the economic downturn and since September 2016, has seen large-scale retrenchments in the entire supply chain - close to 47% of employees in the industry have lost their jobs,” the CIF says.
“The CIF maintained the position that instead of hiking up the increase of only a few remaining employees that one needed, to make every effort to keep as many persons employed as possible. A drastic increase would have meant that more employees would have needed to be retrenched as employers would not have been in the position to afford it.”
After engaging its members, the CIF had been provided with a revised mandate. This provided the CIF the scope to increase their offer. Taking into consideration the current economic climate, both parties to the negotiations felt it was important to reach an agreement in order to avoid industrial action. Thus an agreement for one year, 2018/19, was reached regarding a future increase of 5.6% minimum wage payable.
“We are aware that an increase of minimum wage payable unfortunately still means that more persons will be retrenched if there is not an immediate upturn,” Bärbel Kirchner, consulting general manager of the CIF, said in the statement.
“However, we are hopeful and optimistic that government's commitment to pay outstanding invoices will increase the cash flow and also that government's announcement of an infrastructure fund with the Namibia Development Bank will indeed materialise,” she said.
At this stage it is not clear when the increase on minimum wage payable will become effective, the CIF said in a statement.
In order for the increase of minimum wage payable and the minimum employment conditions to be implemented, the minister of labour, industrial relations and employment creation, Erkki Nghimtina, has to promulgate the extension of the collective agreement, and therefore the agreed minimum wage payable and minimum employment conditions, to the entire construction sector, the statement says.
“As the collective agreement becomes effective on the date of promulgation, the date of when the increase of minimum wages payable, is not determined as of yet.”
According to the CIF, the duration of the process - from the signing of the collective agreement to the date of promulgation - normally takes some time.
“It can be anticipated that the increase on the minimum wage payable will come into force during the first quarter of 2018,” the federation says.
Until that time, the currently gazetted minimum wage payable of N$16.04 per hour and minimum employment conditions will remain applicable.
With an agreed future increase of 5.6% on minimum wage payable the deadlock of negotiations between the CIF and Manwu has been resolved.
Negotiations
The CIF, representing employers in the construction sector, says it wasn't in the position to agree to the demands of the union. The federation maintained that the entire sector would be affected if the increases of the minimum wage payable, were to be increased unreasonably high.
Manwu initially demanded increase of 15% on minimum wage payable. Additional demands for minimum employment conditions meant that the overall demand constituted an increase of over 70%, the CIF says.
“The construction sector had been hit severely by the economic downturn and since September 2016, has seen large-scale retrenchments in the entire supply chain - close to 47% of employees in the industry have lost their jobs,” the CIF says.
“The CIF maintained the position that instead of hiking up the increase of only a few remaining employees that one needed, to make every effort to keep as many persons employed as possible. A drastic increase would have meant that more employees would have needed to be retrenched as employers would not have been in the position to afford it.”
After engaging its members, the CIF had been provided with a revised mandate. This provided the CIF the scope to increase their offer. Taking into consideration the current economic climate, both parties to the negotiations felt it was important to reach an agreement in order to avoid industrial action. Thus an agreement for one year, 2018/19, was reached regarding a future increase of 5.6% minimum wage payable.
“We are aware that an increase of minimum wage payable unfortunately still means that more persons will be retrenched if there is not an immediate upturn,” Bärbel Kirchner, consulting general manager of the CIF, said in the statement.
“However, we are hopeful and optimistic that government's commitment to pay outstanding invoices will increase the cash flow and also that government's announcement of an infrastructure fund with the Namibia Development Bank will indeed materialise,” she said.
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