Minimum wage in construction increases

STAFF REPORTER – The minimum wage payable in the construction sector will increase by 2.6% from N$17.38 per hour to N$17.84 per hour next month.

This marks the second year of the collective agreement which had been negotiated between the Construction Industries Federation of Namibia (CIF) and Metal and Allied Workers Union (Manwu) in May last year.

It is not a general increase of 2.6% across the entire industry, but is relevant only to the categories as listed in the collective agreement.

Although the CIF is one of the negotiating parties, conditions as stipulated in the collective agreement are applicable and mandatory for everyone operating in the sector, irrespective of whether they are a member of the CIF or not.

“This will ensure that minimum wages payable as per employment categories will be the same across the entire construction sector. Although employers can pay more than the minimum payable wage, if desired,” CIF chief executive officer Bärbel Kirchner said in a statement yesterday.

“This will ensure a level playing field in the industry and that wages to not become a differentiating factor for when building and construction companies are bidding for tenders or work,” she added.

‘NEED TO PULL TOGETHER’

Kirchner encouraged all employers in the sector to adhere to the requirements as stipulated in the collective agreement.

“Of course, the CIF understands that our industry is really struggling – we see less private and public investment, global supply chain problems, fluctuating fuel prices, ongoing unjustifiable competition with foreign contractors, and not the least, there are also issues about late payment,” she said.

Kirchner added: “But we have to honour our commitment as per the agreement. Our employees are equally affected by high inflationary pressures and rely on our support.

“Employers and employees really need to pull together, where our contractors will commit themselves to paying the 2.6% increase of minimum wage payable and where construction workers equally commit themselves to high productivity levels.”

CONDUCIVE ENVIRONMENT

The sector needs to see that government also focuses on a better and more conducive environment for the industry, Kirchner said.

“Overall, investment-friendly policies remain a top requirement, and then, specifically for the construction sector, it is critical that the industry will be regulated by a construction council in the interest of greater Namibianisation, local capacitation and regulation of our sector,” she said.

Other benefits for employees in construction remain the same until a next collective agreement is being negotiated. These include a service allowance equal to 150 hours of a worker’s wage, which is to be paid as part of the December remuneration before the commencement of annual leave during December.

It is also mandatory that all employees, for whom minimum wages payable are prescribed as per the agreement, are registered by the employer with the Namibian Building Workers Pension Fund (NBWPF). Alternatively, employers can offer pension and retirement benefits that provide for the same as the NBWPF, or indeed better benefits.