The transport parastatal announced yesterday that the workers in bargaining units A1 to C4 level would receive an additional N$15 on their transport allowance.

TransNamib Chief Executive Officer John Shaetonhodi said the company had to consider the impact of higher wages on its growth and long-term sustainability.

The union understood the critical but challenging times faced by the transport parastatal, he said.

Shaetonhodi said TransNamib briefed the union on its plans to cut costs and increase income, and both sides agreed that productivity had to be improved.

"The negotiation process has taken a number of factors into account, such as overall performance of the company and the operating expenditure for 2004/2005 financial year, business interventions geared to business expansion, current consumer price index and the financial implication of the union demands," he said in a statement.

"Our employees' dedication, commitment and hard work in executing tall-order assignments contributed immensely to the maintenance of the company's acceptable performance," Shaetonhodi said.

He said the increase represented an average salary increase of 6,83 per cent across the board.

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