Labour too costly in Namibia

THE Namibian business sector is performing below expectations because of low productivity and high labour costs, a new organisation representing employers says.

The cost of labour in Namibia was coupled to productivity, which remained “a huge nightmare for performance-minded businesses,” since production did not match the high labour costs, the Namibia Employers Association (NEA) said. “Poor performance will lead to poor results and vice versa,” according to Eric Lueff, Secretary General of the NEA.No government, business person, union or worker could escape this economic reality of cause and effect, he said in a statement.”The Ministry of Labour must take the lead and turn its attention to establishing a more productive-based working culture and environment to offset the high-value employment conditions it has created.”The high cost of labour should now be brought in line with performance excellence, the NEA recommended.The Government had devoted much time and effort to achieving good working conditions for employees and the protection of workers’ rights through legislation.This was understandable, Lueff said, but Government needed a new approach.It should come to grips with reality in the global economic sphere and give absolute preference in its decision-making and actions to high productivity and the determinant role it played in economic growth, good governance and service provision.”Only by excellence in performance by all stakeholders – the State, all employers, large or small, individuals, every worker and the unions – will the Namibian economy develop, be broad-based, vibrant and world-competitive,” according to Lueff.”In doing so we will improve our business, good governance and the well-being of our people.”A further change of attitude should be to give small and individual employers the same recognition, support and voice as the larger “capital-rich” corporate employer.”NEA is acutely aware through its daily dealings with its many small and medium employer members, of their many problems and frustrations with labour matters.The higher costs of labour and cost of dispute resolution to be placed on their shoulders under the new envisaged labour legislation will further frustrate their efforts to keep their businesses viable.”The new dispute resolution procedures proposed in the new Labour Bill were a welcome step and should be put into legislation and effect without delay, the NEA recommended.The Office of the Labour Commissioner should then be manned and provided with all the necessary assistance so as to make the transition to the new dispute resolution processes a smooth one.”Any failure to do so will result in utter chaos and derail the whole exercise before it has a chance to settle,” the NEA secretary general warned.”It must be kept in mind that once implemented, the new Labour Act will affect the management of employees procedurally and substantively.The cost of labour as well as the manner in which disciplinary and dispute matters are managed, will be negatively affected.The success or failure of this effort rests squarely on the Labour Minister and his Ministry.”The whole economy of labour must be brought urgently to higher levels of performance, equity and unfavoured cooperation and recognition, the NEA noted.The constituents of labour and business should also be afforded direct input and participatory ownership of the policies and principles to become part of Government legislation and decision-making.”Only then will Namibia be entitled to claim democratic processing of socio-economic development and participation by all stakeholders,” the NEA concluded.”Poor performance will lead to poor results and vice versa,” according to Eric Lueff, Secretary General of the NEA.No government, business person, union or worker could escape this economic reality of cause and effect, he said in a statement.”The Ministry of Labour must take the lead and turn its attention to establishing a more productive-based working culture and environment to offset the high-value employment conditions it has created.”The high cost of labour should now be brought in line with performance excellence, the NEA recommended.The Government had devoted much time and effort to achieving good working conditions for employees and the protection of workers’ rights through legislation.This was understandable, Lueff said, but Government needed a new approach.It should come to grips with reality in the global economic sphere and give absolute preference in its decision-making and actions to high productivity and the determinant role it played in economic growth, good governance and service provision.”Only by excellence in performance by all stakeholders – the State, all employers, large or small, individuals, every worker and the unions – will the Namibian economy develop, be broad-based, vibrant and world-competitive,” according to Lueff.”In doing so we will improve our business, good governance and the well-being of our people.”A further change of attitude should be to give small and individual employers the same recognition, support and voice as the larger “capital-rich” corporate employer.”NEA is acutely aware through its daily dealings with its many small and medium employer members, of their many problems and frustrations with labour matters.The higher costs of labour and cost of dispute resolution to be placed on their shoulders under the new envisaged labour legislation will further frustrate their efforts to keep their businesses viable.”The new dispute resolution procedures proposed in the new Labour Bill were a welcome step and should be put into legislation and effect without delay, the NEA recommended.The Office of the Labour Commissioner should then be manned and provided with all the necessary assistance so as to make the transition to the new dispute resolution processes a smooth one.”Any failure to do so will result in utter chaos and derail the whole exercise before it has a chance to settle,” the NEA secretary general warned.”It must be kept in mind that once implemented, the new Labour Act will affect the management of employees procedurally and substantively.The cost of labour as well as the manner in which disciplinary and dispute matters are managed, will be negatively affected.The success or failure of this effort rests squarely on the Labour Minister and his Ministry.”The whole economy of labour must be brought urgently to higher levels of performance, equity and unfavoured cooperation and recognition, the NEA noted.The constituents of labour and business should also be afforded direct input and participatory ownership of the policies and principles to become part of Government legislation and decision-making.”Only then will Namibia be entitled to claim democratic processing of socio-economic development and participation by all stakeholders,” the NEA concluded.