Farmers seek relief from wage squeeze

Agricultural unions and employers have called for an urgent review of the minimum wage framework for the farming sector, warning that further increases could place already strained operations under severe financial pressure and threaten jobs in rural areas.The issue was raised during a meeting on 7 August between labour minister Fillemon Wise Immanuel and the Namibia Agricultural Union (NAU), Namibia National Farmers Union (NNFU) and Private and Emerging Farmers’ National Union (PDNFU), together with the Agricultural Employers’ Association (AEA).NAU said the pressure is set to increase further from 1 January 2027, when the cash component of agricultural workers’ wages is scheduled to increase by 29% to N$18 per hour under the national minimum wage regulations.The agricultural unions warned that the increase could be unaffordable for many employers and may contribute to further job losses, particularly in rural communities where agriculture remains an important source of employment.The meeting followed an invitation issued by Immanuel on 3 August for the unions to participate in a sectoral consultation in Gobabis.Discussions centred on what participants described as a crippling minimum-wage burden on the sector.The unions warned that, unlike other industries, agricultural employers must comply not only with the national minimum wage but also with compulsory ration provisions contained in the Collective Wage Agreement for Agriculture, published in the Government Gazette on 21 May 2024.This effectively places agriculture under a significantly higher minimum wage structure than other sectors, NAU said. The unions argued that the additional cost is particularly difficult for farming operations because agricultural employers frequently provide workers with benefits such as free accommodation, water and sanitation – costs that are not necessarily reflected in the cash wage.New talks NAU said the meeting also provided an opportunity to address what the unions described as misconceptions surrounding the impact of the current wage arrangements. Following discussions, Immanuel reportedly showed an understanding of the challenges facing agricultural employers.He subsequently met with the Namibia Farmworkers’ Union (NAFWU), which represents agricultural workers, on the same issue. The parties were then brought together for a joint session.NAU said during the joint meeting, Immanuel proposed that the agricultural unions and NAFWU negotiate a new collective wage agreement for the sector. The proposed agreement would replace the existing agreement of 21 May 2024 and come into effect on 1 January 2027.The AEA will now facilitate negotiations between the agricultural unions and NAFWU as a matter of urgency.The objective is to reach an agreement that balances the interests of farmworkers with the ability of agricultural employers to remain financially viable.

Farmers seek relief from wage squeeze

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Namibian Sun 2026-08-17

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Farmers seek relief from wage squeeze

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Namibian Sun 2026-08-17

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