The Namibian Building Workers Pension Fund (NBWPF) has mandated a pension fund for construction sector employees, as per the collective agreement signed between the Construction Industries Federation of Namibia (CIF) and the Metal and Allied Namibian Workers Union (MANWU).
According to the NBWPF, “the Collective Agreement, published in Namibia’s Government Gazette on 6 June 2024 (Government Gazette No. 8377, Notice 156), establishes the minimum wage payable and employment benefits for workers in the construction sector”.
Consequently, the announcement notes that all employers within Namibia’s construction sector must ensure their employees are either enrolled with the Namibian Building Workers Pension Fund or provided with pension/retirement benefits that meet or exceed the Fund’s standards.
The CIF and MANWU reached a two-year wage agreement which will see a 5% wage increase in the first year and an additional 4% increase on the adjusted minimum wage in the second year.
“That would mean that in the first year, the minimum wage payable for an unskilled labourer will be N$18.72 and in the second year N$19.46. All other conditions of employment mostly remain the same as in the previously gazetted Collective Agreement,” Bärbel Kirchner, CEO of the CIF said.
The announcement further stipulates that without proper monitoring and enforcement, the effectiveness of the officially published Collective Agreement regarding Industrial Relations and Employment Creation will be compromised. Therefore, labour inspectors need to educate themselves and conduct inspections, even in remote areas of the country.
“We also want to see that these provisions that call for the mandatory registration of workers with a pension, as well as other minimum employment conditions, are enforced by the labour inspectorate of Namibia’s Ministry of Labour, Industrial Relations and Employment Creation,” Justina Jonas, Secretary-General of MANWU said.
This comes after some employers being reluctant to consider the contributions to a pension fund for their employees as an extra financial responsibility.
“Some employers are initially inclined to regard the contributions to a pension fund for their employees as an additional financial burden. This can be the case during tough economic times, especially during a recession. However, there are some benefits for the employers too,” NBWPF noted.
“Members of the CIF are well acquainted with the requirements set out in the Collective Agreement, including the provisions for pension fund services,” Kirchner said.
