Nafau and KATP failed to reach an agreement on wage negotiations on the second round of talks over a major disagreement.

The disagreement was allegedly over a 7,5 per cent salary increment that is due from last year.

The company could not grant the increase last year as it was experiencing financial difficulties at the time.

A source close to the negotiations told Nampa on Friday that the company that was formerly known as Ostrich Production Namibia (OPN) claimed during the talks that the union agreed at the first round of talks that the money should be paid out in equal installments over a period of three years Nafau is allegedly denying KATP's claim.

This prompted representatives of the company to stage a walkout, claiming hat the union was negotiating in bad faith.

Besides that 7,5 per cent pending salary increase the workers are also demanding a wage increase of 20, 11,5 and 9,5 per cent for A, B and C band employees respectively for 2004.

KATP offered seven, 6,5 and six for A, B and C band employees.

The source told Nampa that the two parties already reached an agreement that a medical scheme would be introduced for workers with the company contributing 60 per cent.

Currently employees of KATP are only getting a medical allowance.

Employees of KATP could also look forward to a 13th cheque and 11 per cent equal shares from profits made by the company after every audit.

The Nafau Branch Organiser in Keetmanshoop, Deon Pienaar did not want to comment on the issue as the union and the company has an agreement that no unilateral statements would be issued by either party.

-Nampa

Marketplace News Headlines Of The Last 48 Hours

•  Governments and business collude in deaths of trade unionists, survey reveals
•  FNB offers cross-border prepaid airtime
•  Lena Blomstrand: Nuclear power is an environmental disaster
•  IMF finally approves US$2,1bn loan to Iceland
•  Steady as she goes, says Captain Manuel to Good Ship SA
•  Tourism body supports SME sector
•  Bannerman secures N$132m for Namibian project
•  Forsys strikes mega deal with Forrest
•  Air travel nosedives as recessionary clouds gather
•  Global labour union welcomes re-election of ILO boss
•  Booming Gulf looks overseas for agriculture needs
•  Farming development at Ndonga Linena on track
•  Govt aims to decrease Nam's dependence on imports
•  School's out The Tukwafeni Project: an activity beyond the classroom
•  Electricity theft cost firms thousands in Maputo