Standard Bank Namibia workers are threatening industrial action after wage negotiations collapsed this week, accusing bosses of rewarding executives while offering staff a mere 5% increase.
If approved, the strike could disrupt services at one of Namibia’s largest commercial banks.
This comes as workers are accusing the bank of rewarding executives while refusing to meaningfully improve the salaries of the staff behind its N$1.2 billion profit.
Standard Bank Namibia has confirmed that negotiations for the 2026/27 wage cycle had reached a deadlock, but defended its offer, saying it had negotiated in good faith.
Namibia Financial Institutions Union secretary general Asnath Zamuee yesterday said workers were angered by what they view as a growing imbalance between executive rewards and employee compensation.
“The bank generated approximately N$1.2 billion in profit through the dedication and hard work of its employees. Last year, the chief executive and chief financial officers received a combined N$8 million in bonuses. Given that the bank has recorded even higher profits this year, those bonuses are likely to have increased,” she said.
The union is demanding a 7% salary increase and higher transport and rental allowances, while Standard Bank has offered a 5% salary increase and a N$50 increase to the transport allowance. The union had proposed increasing the transport allowance by N$500.
The dispute has progressed through conciliation before the Office of the Labour Commissioner, where no agreement could be reached.
The conciliator is now expected to issue the ground rules for a protected strike, after which employees will vote on whether to down tools.
“The union entered these negotiations seeking a fair and reasonable package that reflects the valuable contribution employees make to the bank’s continued success,” Zamuee said, adding that employees are battling rising living costs.
“An increase of just N$50 demonstrates how little value is being placed on the daily financial pressures employees face,” she said.
According to the union, a bank teller earns a basic monthly salary of about N$13 000.
Zamuee questioned why the bank considered a N$500 transport allowance increase unsustainable while executive bonuses continued to rise.
TROUBLING MESSAGE
“This sends a troubling message: There always appears to be sufficient resources to reward those at the top, while employees who generate the bank’s success are expected to settle for far less. Employees are frustrated, they are exhausted, and they are demanding to be treated with the fairness and respect they have earned,” she said.
The union rejected the bank’s proposal to introduce funeral benefits as part of the wage package.
“While any improvement to employee benefits is acknowledged, this particular benefit will only provide value upon an employee’s death. For a workforce that is predominantly young, this is not a benefit that addresses their immediate financial needs or improves their quality of life today,” Zamuee said.
Standard Bank spokesperson Elzita Beukes yesterday said the bank has engaged in good faith, tabling multiple offers, all of which have been rejected by the union following consultation with its members.
She said the bank’s proposal exceeds current and projected inflation and includes additional employee benefits.
She cautioned employees about the financial implications of an industrial action.
“The strike rules issued by the relevant authority further provide that the ‘no work, no pay’ principle applies during a protected strike. This is a legal provision, not a discretionary or punitive measure introduced by the bank.”
SBN Holdings Group in its last annual report 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.
