Furnmart and Home Corp Namibia employees have launched a strike following a deadlock in wage negotiations, demanding an 8% salary increase and housing allowances.
They are accusing their employer of paying ‘poverty wages’, saying mounting financial pressures are contributing to what they describe as financial depression and other mental health challenges among staff.
These claims are contained in a petition handed over to the retailer’s management yesterday, as workers continued to push for a salary increase and the introduction of a monthly housing allowance of N$500.
The petition, submitted by a group of employees with the support of the Metal and Allied Namibian Workers Union, says workers are struggling to cope with rising transport costs, increasing rental prices and stagnant wages.
“Consequently, the majority of us suffer from financial depression and other mental health issues because of these poverty wages,” the petition states.
The workers say wage negotiations between the union and Furnmart and Home Corp’s management began last August, but failed to produce an agreement on salary increments and housing benefits.
The matter was subsequently referred to the Labour Commission, which issued a certificate of unresolved dispute after the parties failed to reach consensus. Employees later voted in favour of a strike.
The workers say many employees are unable to meet their basic living expenses despite working full-time.
“We are expected to support our families, and cover transport expenses and higher rental costs with very limited incomes,” the petition reads.
Employees also claim many cannot afford to join the company’s medical aid scheme because of their low salaries.
“The majority of Furnmart and Home Corp employees are among the lowest-paid workers in the retail sector and cannot meet their basic living expenses,” the petition states.
The workers further allege that salespersons are expected to meet demanding monthly sales targets despite earning modest salaries.
According to the petition, Furnmart’s salespersons are required to achieve a minimum monthly sales target of N$80 000 while earning basic salaries of less than N$4 000.
At Home Corp, workers claim sales staff are expected to generate at least N$200 000 in sales per month while earning basic salaries of around N$5 800.
Employees who fail to meet these targets allegedly face disciplinary measures or demotion.
The petition further highlights the absence of transport and housing allowances, saying workers are bearing the full burden of rising living costs.
The employees say taxi fares increased by 11.5% in May, while rental costs continue to rise in urban areas.
“Despite all these financial challenges, our employer does nothing to mitigate the negative financial burdens on the employees,” the petition states.
The workers argue that the company’s offer of a 5% salary increase does not adequately address the growing cost-of-living pressures facing employees.
“Management has offered only 5%, which fails to keep pace with the rising cost of living,” the petition says.
Employees are demanding an 8% salary increase and a monthly housing allowance of N$500, saying the measures would help preserve living standards, improve morale and reduce staff turnover.
The petition also raises concerns about the safety of employees, particularly women.
“The majority of Furnmart and Home Corp employees are women. These women have to walk longer distances to and from work every day,” the workers say.
They argue that this exposes them to crime and other risks.
Sales adviser Brandon-Jamal Tsamareb of Furnmart’s branch yesterday stressed that workers remain firm in their demand for salary increases.
Member of parliament Justina Jonas yesterday said this situation highlights the urgent need to strengthen social dialogue in the country.
“Employers must recognise that employees are valuable assets who contribute significantly to the growth and success of both companies and the nation as a whole,” she said.
Receiving the petition yesterday, Furnmart and Home Corp Namibia general manager Dewald Ludeke said management would consider the workers’ concerns and engage senior leadership on the matter.
“This petition was handed over to myself on 23 June. We commit to finding a workable solution as soon as possible,” he said.
“I will bring this under the attention of senior management, and we will come back to you as soon as possible.”
The workers, however, say they will remain united in their strike until their concerns are addressed and an agreement is reached.
They warned that failure to resolve the dispute could further strain labour relations at the company.
