• Management pockets N$46.9 million in salaries
• Bank reports N$1 billion profit
Standard Bank Namibia employees have voted overwhelmingly in favour of protected industrial action, escalating a wage dispute that has been brewing for months.
The Namibia Financial Institutions Union (Nafinu) on Wednesday announced that “91.7% of employees who participated in the strike ballot voted in favour of a protected strike”, saying the outcome reflects growing frustration with the bank’s handling of salary negotiations.
The vote follows the collapse of negotiations over a 2026/27 wage agreement.
According to the union, the bargaining unit (non-managerial employees) consists of about 1 250 employees.
In response to the earlier deadlock, Standard Bank spokesperson Elzita Beukes said the bank had negotiated in good faith and tabled several offers that were rejected by the union after consultation with members.
She added that the “no work, no pay” principle would apply during any protected strike in line with the Labour Act.
Union secretary general Asnath Zamuee yesterday said the vote shows employees are not satisfied with the current remuneration.
“The emphatic outcome sends a clear and unmistakable message to Standard Bank’s leadership: Employees have lost confidence in the bank’s ability to address their legitimate concerns through meaningful collective bargaining,” the union says in a statement.
Nafinu says workers had participated in negotiations in good faith but believed the bank had failed to present an offer that adequately recognised their contribution to the institution’s financial performance.
“For months, employees have exercised patience and engaged in good-faith negotiations. Instead of responding with an offer that reflects their hard work, dedication and the bank’s strong financial performance, the bank has failed to meet their reasonable expectations,” the union says.
The union says it would now begin the next legal steps required under the Labour Act before a protected strike can take place, while maintaining that it remains open to a negotiated settlement.
“The door to a negotiated settlement remains open,” the union says.
“The message from employees could not be clearer: Enough is enough. It is now up to Standard Bank to decide whether it will continue down a path of confrontation or choose meaningful engagement.”
The dispute centres on wages and allowances. The union is demanding a 7% salary increase, as well as higher transport and rental allowances.
Standard Bank has offered a 5% salary increase and a N$50 increase to the transport allowance, while also proposing additional employee benefits.
The union has argued that the offer does not reflect the bank’s profitability or the rising cost of living.
According to the bank’s latest annual report, Standard Bank Namibia Holdings Group had a net profit of N$1.059 billion, up from N$974 million in 2024.
The company’s net profit also increased to N$1.045 billion, compared to N$941 million a year earlier.
On 5 March, the board of directors declared a final dividend of 17 103 cents per ordinary share.
This translates into a total payout of N$342 million, up from N$301 million in the previous year, showing improved returns to shareholders.
Total employee compensation rose to N$1.04 billion for the 2025 financial year, compared to N$942.5 million in 2024.
This includes N$934.3 million in salaries and allowances, N$83.6 million in pension contributions, and N$22.2 million in post-employment medical benefits.
Share-based payments and incentive schemes accounted for a further N$8.8 million.
Key management personnel received a total of N$46.9 million in compensation, covering salaries, short-term benefits and share-based rewards.
If no agreement is reached before the legal process is completed, the strike could affect services at one of Namibia’s largest commercial banks.
Cirrus Capital analyst Deon Gous says it is too early to determine whether the strike threat would have a significant impact on Standard Bank Namibia’s share price.
He says Namibia’s small and relatively liquid capital market means company-specific developments do not always result in immediate share price movements.
“At this point, it is a wait-and-see situation. We do not know whether there will be a material effect on the share price,” he says.
Gous says operational cost savings had been one of the factors contributing positively to Standard Bank’s 2025 financial performance, but it was unclear whether potential industrial action would affect investor sentiment.
He says investors on the Namibia Securities Exchange generally focus more on company fundamentals and financial performance than short-term news events.
“In bigger markets, news like this would often reflect in the share price, but in the Namibian market that does not normally happen because trading is largely driven by institutional investors and fundamental analysis,” he says.
Standard Bank’s share price recently traded at N$13.51, having gained about 22% over the past year.
Professor and tax consultant Eukeria Wealth says a Standard Bank employee strike would likely disrupt some banking services, although the impact could be less severe than in previous years due to the increased use of digital platforms.
She says customers who rely on face-to-face services, including deposits, withdrawals, payment processing and loan applications, could experience disruptions.
“Those that would require those kinds of services on a day-to-day basis would definitely be affected by the strike,” Wealth says.
She warns that prolonged industrial action could, however, affect the bank’s productivity, reputation and investor confidence, but says customer migration to other banks was likely to be limited in the short term due to the long-term nature of banking relationships.
She says Standard Bank would need to weigh the cost of granting the additional 2% increase demanded by employees against the potential costs of a prolonged strike.
“The bank needs to conduct a cost-and-benefit analysis, because sometimes the strike may end up being more costly than adding the additional 2%,” she says.
Wealth says while a higher salary increase would raise operating costs, management should also consider the potential impact of disruptions, reputational damage and employee relations.
Consumer activist Milton Louw says a Standard Bank employee strike could inconvenience customers, but consumers should also recognise workers’ right to negotiate for improved conditions.
“From a consumer perspective, it will be an inconvenience and people will not always be happy about it.
However, we appreciate that workers are striking to get better wages,” he says.
Louw says consumers should support industrial action as long as it is conducted within the legal framework.
