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TransNamib blames unsustainable wage increases for financial woes

TransNamib says salary increases and benefits awarded to staff over the years have contributed to its precarious financial position. 

This comes as the rail operator is said to have awarded salary increases despite accumulated losses amounting to over N$ 4 billion for the period 2010-2017. 

“During the same period, however, salary increases of between 6 and 10% were provided to staff on an annual basis. These increases were given to the employees even though the payroll costs remained in excess of 80% of the total revenue earned. The above-mentioned salary and benefit increases have subsequently led to the unsustainable situation in which the company is finding itself in today,” TransNamib Spokesperson, Abigail Raubenheimer said. 

She said the company was now faced with an unsustainable wage bill, “the implications of an unsustainable wage bill are far reaching, especially for us as TransNamib. Hence, the management of the company has been proactively engaging both the Union and its employees about the precarious financial position the company finds itself.” 

“We therefore, once again, extend an appeal to the Union as well as our employees to assess the situation in its entirety, and join hands with the management of the company to work in unity towards transforming the company.” 

The revelation by TransNamib comes as its employees have embarked on an industrial action after the company management rejected their wage increase demands. 

TransNamib is currently banking on a Development Bank of Namibia and Development Bank of South credit facility to fund its turnaround strategy to the tune of N$2.6 billion.

 

 

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Last modified on Monday, 22 August 2022 17:34

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