Labour Bill ‘bad for investment’: NEF

THE newly elected president of the Namibian Employers’ Federation (NEF), Vekuii Rukoro, has picked up on the issues surrounding the controversial new Labour Bill, saying more needs to be done before it becomes an Act of Parliament.

Speaking at his inauguration at the NEF annual general meeting held in Windhoek on Wednesday, Rukoro said the current draft bill was of major concern in its current form, as it would be bad for investment. Rukoro touched on the issue of the proposed annual leave of ‘four working weeks’ from the current 18 working days according to the Labour Act of 1992, saying this will have a negative effect on attracting foreign investment so badly needed by the country.Another issue that needed to be revised was the imposition by legislation of five days of compassionate leave a year.He said unlike other countries in the region where employers could negotiate this with their staff, in Namibia it was to become law.Rukoro said the proposed annual leave would be the highest in the SADC region, adding that corporate tax at a high 35 per cent added to the woes.”The cost of doing business here in Namibia is too high compared to our neighbours.It’s bad for investment and has a negative effect on the economy.Investment brings in jobs and would eventually lead to Vision 2030 … However, we could end up with Vision Impossible,” he said.Rukoro said the new Labour Bill would in the long run work against employees and the unemployed, adding that when “disaster strikes it would be too late” and Vision 2030 would remain a mere dream.He called on all legislators to make sure that the bill was debated and that input was sought from relevant stakeholders so that the parliamentarians could make an informed decision after listening to all views to avoid an economic disaster.The new labour bill has been opposed by the NEF, which believes that in its current form, it would be detrimental to economic development.The bill is expected to be passed by the end of this year.Rukoro promised the gathering that he would build on the legacy left by outgoing NEF President Harold Pupkewitz, who held the position for 11 years.Rukoro urged the NEF to be proactive and work together with the Government and labour unions to bring about economic revival in Namibia.Although Rukoro is employed by First National Bank Namibia Holdings as its Group Chief Executive Officer, NEF Secretary General Tim Parkhouse explained that Rukoro was eligible to be NEF President as he represented the interests of his employers and was a senior member of that company’s management.Rukoro touched on the issue of the proposed annual leave of ‘four working weeks’ from the current 18 working days according to the Labour Act of 1992, saying this will have a negative effect on attracting foreign investment so badly needed by the country.Another issue that needed to be revised was the imposition by legislation of five days of compassionate leave a year.He said unlike other countries in the region where employers could negotiate this with their staff, in Namibia it was to become law.Rukoro said the proposed annual leave would be the highest in the SADC region, adding that corporate tax at a high 35 per cent added to the woes.”The cost of doing business here in Namibia is too high compared to our neighbours.It’s bad for investment and has a negative effect on the economy.Investment brings in jobs and would eventually lead to Vision 2030 … However, we could end up with Vision Impossible,” he said.Rukoro said the new Labour Bill would in the long run work against employees and the unemployed, adding that when “disaster strikes it would be too late” and Vision 2030 would remain a mere dream.He called on all legislators to make sure that the bill was debated and that input was sought from relevant stakeholders so that the parliamentarians could make an informed decision after listening to all views to avoid an economic disaster.The new labour bill has been opposed by the NEF, which believes that in its current form, it would be detrimental to economic development.The bill is expected to be passed by the end of this year.Rukoro promised the gathering that he would build on the legacy left by outgoing NEF President Harold Pupkewitz, who held the position for 11 years.Rukoro urged the NEF to be proactive and work together with the Government and labour unions to bring about economic revival in Namibia.Although Rukoro is employed by First National Bank Namibia Holdings as its Group Chief Executive Officer, NEF Secretary General Tim Parkhouse explained that Rukoro was eligible to be NEF President as he represented the interests of his employers and was a senior member of that company’s management.