The Ministry of Labour, Industrial Relations, and Employment Creation has proposed a National Minimum Wage (NMW) of N$18 per hour.
Minister of Labour, Industrial Relations and Employment Creation Utoni Nujoma expressed the intention to conclude necessary consultative and Cabinet processes to implement the NMW by the first quarter of the upcoming year.
The Minister emphasised that the NMW is not a substitute for collective bargaining.
“I am pleased to inform you that I sent to the Labour Advisory Council last month the report of the Wages Commission, supplemented by an ILO feasibility study and recommendations, on the introduction of the National Minimum Wage,” he said during the 11th Congress of the Namibia Food and Allied Workers Union.
Minister Nujoma said the development will benefit low-paid workers, particularly the unorganised.
“The wages and benefits that the unions can negotiate for their members are expected to exceed these minimums,” he said.
In addition to the NMW proposal, Minister Nujoma outlined other significant initiatives including the establishment of the Social Security National Pension Fund, which “is progressing well” and will be supported by the global accelerator process.
“Amendments to the Labour Act of 2007 are in the finalisation stage, with plans to table them in the first half of 2024. Furthermore, amendments to the Social Security Act, the Employee Compensation Act, and the Affirmative Action Act are expected to be tabled next year,” he said.
Nujoma noted that the Ministry is actively working on the development of a National Unemployment Fund, aligned with the Global Accelerator process.
Furthermore, a strategy for the informal economy is also in progress, involving collaboration with the Ministry of Industrialisation and Trade, the Bank of Namibia, and the International Labour Organisation.
Additionally, Minister Nujoma addressed the strengthening of the Office of the Labour Commissioner.
He presented a multi-faceted plan to upgrade services, developed in consultation with social partners.
At the same congress, Minister Nujoma emphasised the importance of collective bargaining, stating: “Collective bargaining empowers workers, through negotiations between their trade unions and employers, to address a wide range of critical issues related to their employment.”
He encouraged trade unions to prioritise organising unorganised workers and strive for unity and cooperation.
“NAFAU has been successful recently in negotiating strong collective bargaining agreements with a number of large employers and has committed itself to train its shop stewards and other members in collective bargaining,” he said while commending recent successes.
