Natau declares urgent dispute with NAC

AN URGENT dispute has been declared with the Namibia Airports Company (NAC) after the parastatal informed all workers that they would be laid off at the end of this month.

Namibia Transport and Allied Workers (Natau) General Secretary John Kwedhi confirmed the declaration of the dispute by his union, after the company had informed the entire workforce in an official letter that they must reapply for their jobs.Workers were given the option to reapply for employment before the end of this month, after which they will be re-employed within newly formed structures.In a letter handed to workers over the last week, the workers were given notice that in terms of the restructuring of the NAC, they would be let go, in accordance with a board decision of February 9 which calls for the ‘total restructuring’ of the NAC. The letter indicated that all workers were briefed in detail on the potential ramifications of the process on operations and employees. It said the restructuring process has now been completed and the company is moving forward with the implementation thereof. This means the termination of employment contracts of all NAC workers – with the exclusion of the NAC CEO Ben Biwa who started at the company at the start of the year. Biwa started at the NAC as CEO in December last year.The employees were given until March 16 to indicate whether they are interested to be re-employed at the company or not, although many only received formal notifications by last Friday. Workers were given seven days from receiving the notification to say whether or not they will re-apply. The company stated that it would make ‘extra effort’ to accommodate most of its current employees in the new company structure. Where employees cannot be accommodated, their last working day will be at the end of this month.But the general mood among workers reportedly is that they do not want to return to the company. In accordance with the deal struck between the NAC management and the Namibia Public Workers Union (Napwu), the company undertook to pay workers a severance package equal to two weeks’ gross pay for each year of employment at the NAC. This is payable on March 30. Furthermore, they will receive one month’s gross payment in lieu of notice, and a pro-rata bonus. Accumulated leave will be paid out, and for those workers reapplying, the leave days will be carried over into the new employment contracts.Workers are also entitled to a one-off relocation fee of N$5 000 payable to all employees who will not return to the NAC. The company said all outstanding debt in respect of market-related salary overpayments will be written off. But workers charged that the company owes them a five-year difference in overtime back pay, as well as a two-and-a-half year difference in market-related salaries. Workers also complained that their severance packages will be subject to tax after the company said that those being paid less than N$300 000 will not pay taxes on the severance packages. The company has, however, indicated that it would apply on behalf of workers for special exemption for tax to the Inland Revenue office. The company said no pension withdrawals, transfers or payments will be made to those employees who wish to be re-employed at the NAC. Pension payouts will only be made to those retrenched or who decide to leave. All previous warnings and other disciplinary actions against workers will lapse by the end of March. In accordance with the notice, workers should unconditionally agree not to bring any further claims against the company. CEO Biwa would not give comment on the new developments.