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04:59Last update on: 12 Aug 2013
The Namibian
Mon 12 Aug 2013


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FNB’s new wage agreement just the beginning
Nomhle Kangootui
FNB Namibia and the Namibia Bank and Allied Workers Union (NBWU) yesterday signed a new wage agreement paving the way for a 11,3% salary increase at the offices of the Ministry of Labour and Social Welfare.
Initially, the union had demanded 100% coverage on medical aid, transport and rental allowances for employees who do not qualify for housing allowance.
The bank’s head of human resources, Florentia Amuenje, said the agreement covers a seven percent salary increase as well as medical aid at 70/30 ratio. The new offer amounts to approximately 11,3% increase of the original salary.
“The stability this brings to our employees, our customers, stakeholders and partners cannot be over-emphasised,” Amuenje said adding that FNB will pay 70% of the current medical aid contributions for all the employees in the bargaining unit while the employees will contribute 30% to arrive at the 70/30 ratio.
She also said that the amounts employees qualify for on housing loans will be improved as from 1 January 2014 while the new salaries will be backdated to 1 August this year.
The union vice president, Olsen Kahiriri, said the negotiations have not been easy.
“Both parties wanted something else but the best way of preserving the bank’s viability and job security was not to strike. We are happy we have solved the first part of the negotiations. There are still so many internal issues we have to solve, we are not done,” said Kahiriri.
FNB’s management promised not to victimise employees who were part of the negotiations.
Initially, the union had demanded 100% coverage on medical aid, transport and rental allowances for employees who do not qualify for housing allowance.
The bank’s head of human resources, Florentia Amuenje, said the agreement covers a seven percent salary increase as well as medical aid at 70/30 ratio. The new offer amounts to approximately 11,3% increase of the original salary.
“The stability this brings to our employees, our customers, stakeholders and partners cannot be over-emphasised,” Amuenje said adding that FNB will pay 70% of the current medical aid contributions for all the employees in the bargaining unit while the employees will contribute 30% to arrive at the 70/30 ratio.
She also said that the amounts employees qualify for on housing loans will be improved as from 1 January 2014 while the new salaries will be backdated to 1 August this year.
The union vice president, Olsen Kahiriri, said the negotiations have not been easy.
“Both parties wanted something else but the best way of preserving the bank’s viability and job security was not to strike. We are happy we have solved the first part of the negotiations. There are still so many internal issues we have to solve, we are not done,” said Kahiriri.
FNB’s management promised not to victimise employees who were part of the negotiations.
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(August 12)
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