Standard Bank employees get pay rise

DESPITE challenging economic times during which companies, including banks, are experiencing a slump in profits, Standard Bank employees will receive a 7,1% average salary increase for the financial year March 2017 to February 2018.

Standard Bank signed a wage agreement with the Bank Workers Union of Namibia (Bawon) at the bank’s headquarters in Windhoek.

The bank and the union agreed on salaries and wages after two days of discussions.

Chief executive of Standard Bank Vetumbuavi Mungunda said the salary increase is based on the principle of ‘pay for performance.’

“It is commendable to note that during the past four years, the parties have successfully negotiated a mutually beneficial agreement in an amicable and cordial manner. This is a clear demonstration of a trust relationship between the bank, our staff members and Bawon, as representatives of the employees.

“In order to solidify this partnership, we will continue our culture of openly engaging Bawon on matters of mutual interest for the benefit of our employees and the bank,” Mungunda stated.

He added that the “Namibian economy is currently faced with serious headwinds, characterised by a slowdown in the mining, agriculture and construction sectors, compounded by the regional drought and government consolidation efforts constraining the performance of domestic economic activities. It is also pleasing to note that the parties recognised these economic realities as a foundation and point of departure for the negotiations.”

Standard Bank employs over 1 700 people, making it one of the biggest employers in the financial services sector.

Other benefits awarded to staff during the year are subsidised loans for housing and vehicle purchases, as well as the newly reviewed medical aid arrangements in response to requests by Bawon and the employees.

“As we continue to improve the salary and benefit structures of our employees, I want to call on our employees to adopt an entrepreneurial mindset, founded on accountability and an ownership culture. With the above, the payback or return on investment to the company, employees and community is inevitable as performance and productivity increase,” said Mungunda.

Bawon secretary general Thomas Muchima said the negotiations had gone well, with both parties agreeing on a win-win situation.

Standard Bank’s latest salary increment comes despite the increasingly challenging climate faced by banks to maintain business growth and sustainability where all parties considered the welfare of the employees, taking into account the rising cost of living.

This was the third salary and benefits agreement under Mungunda, and overall the sixth consecutive year that Standard Bank and Bawon successfully negotiated a salary and benefits agreement.

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