Construction Industries Federation of Namibia (CIF) and the Metal and Allied Namibian Workers Union (MANWU), have reached a two year wage agreement which will see 5% wage increase in the first year and an additional 4% increase on the adjusted minimum wage in the second year.
CIF CEO Bärbel Kirchne said the increment was effective upon the publication of the Collective Agreement which happened on the 6th of June and outlines the two-year period of regulated wages and employment practices.
“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,” Kirchner said
Kirchner further emphasised the importance of a level playing field within the industry, ensuring all construction businesses adhere to the minimum wage standards.
The transparency, she argues, strengthens fair labour practices and eliminates potential disadvantages for CIF members who previously adhered to these terms.
“For us it is important that implementation date of the agreement is on the day the Collective Agreement is published in the Government Gazette This will avoid that our members are disadvantaged before the date of promulgation; i.e. that only they would have to adhere to the conditions. Now that the Collective Agreement is gazetted, every single business in the construction sector would have to adhere to it,” she said.
She also highlighted that the minimum wage increase applies only to designated worker categories and does not guarantee automatic wage increases for all employees within those categories.
The CEO said employers who already offer wages exceeding the minimum wage, are not obligated to adjust salaries based on this agreement.
“It is important to note that the increase of the minimum wage payable, is not an increase across the industry. It is only an increase of the minimum wage payable for the categories of employees as listed in the Collective Agreement,” she said.
