The Namibian Employers’ Federation (NEF) says implementing a blanket national minimum wage across industries could result in significant job cuts and an increase in informal employment.
The NEF called for an engagement between the government, employers’ organisations, and workers’ organisations in shaping policies and legislation affecting the world of work.
According to the President of the NEF, Elias Shikongo, the Federation had previously signalled its willingness to support the introduction of a national minimum wage, provided that it was preceded by meaningful consultations and negotiations.
“It does not only relate to the fact that once again the employers’ position has not been sufficiently integrated or, effectively ignored, but the fact that it will have a massive impact on our labour market. This must be prevented,” he said.
He further explained that the organisation’s submissions outlining material concerns, including the potential for job losses and the need for sector-specific considerations, were not adequately taken into account.
“We call for a reversal of the Wage Order by our Minister of Labour. There is a need for further deliberations and we would want to see that the employers’ submission through the NEF will be taken into consideration,” Shikongo said.
The NEF called for urgent tripartite deliberations to address these concerns and ensure a stable labour market.
It warned that incomplete consultations could undermine the buy-in for the national minimum wage and exacerbate issues such as job displacement by technology and increased informality.
“Following that, after effective tripartite consultations and negotiations, we would like to see that a bill be drafted and tabled in Parliament, once it has been seen by Cabinet and by the Cabinet Committee for Legislation,” he said.
The Ministry of Labour, Industrial Relations and Employment Creation recently announced the introduction of a National Minimum Wage of N$18 per hour to come into effect on 1 January 2025.
