THE construction sector has announced an increase in the minimum wage for workers from its 2018 level of N$16,94 to N$17,38 per hour.
The Construction Industries Federation (CIF) and the Metal and Allied Namibian Workers Union (Manwu) announced this week that they had reached an agreement on the increase.
The minimum wage in the sector will be increased by 2,6% for the first year after promulgation and by a further 2,6% after the second year of promulgation, the two organisations agreed.
The two organisations representing employers and employees reached a two-year “collective agreement during their meeting which ended last month.
Once the collective agreement is authorise by the minister of labour, industrial relations and employment creation, Utoni Nujoma, the minimum wage for the general worker in the sector will be N$17,38 per hour.
Justina Jonas-Emvula, secretary-general of Manwu explained: “Negotiating for a pay rise for this sector was not easy given the serious economic challenges it faces especially during this time of Covid-19.
“We are happy that our members agreed to this rise to ensure the sector’s sustainability,” she said.
Bärbel Kirchner, general manager of the CIF was happy with the swift agreement, considering the harsh economic environment the sector faces.
The last time the construction sector grew (22,7%), was in 2015 as for the past five years it has been hit with contraction.
“However, we feel that since the last increase was in April 2018, a 2,6% increase on minimum wage payable is fair,” said Kirchner.
As the government, the biggest investor went on a fiscal consolidation quest and started contracting the lowest bidder, this led to more foreign companies dominating the sector at the expense of local companies.
Kirchner said as a result, many local businesses closed or scaled down operations leading to large-scale retrenchments in recent years; and many others have a cash flow crisis.
She also urged treasury to fulfil its promises on outstanding payments by the government on some projects.
“We also hope the conditions in our sector will change, with more focus on securing work for local contractors,” she sid.
Kirchner said they are lobbying for greater regulation in view of the optimal development of the industry.
“As we await the gazetting to be finalised, we continue to urge all stakeholders to seriously consider localisation of construction work. We call for a fast-track implementation of the Construction Council, to safeguard the sector,” she said.
Kirchner urged Nujoma to help the sector by fast-tracking the gazetting of the collective agreement.
