Deadlock over retrenchment packages for MVA workers

NEGOTIATIONS on exit packages for about 12 senior employees retrenched by the Motor Vehicle Accident (MVA) fund last month seem to be headed for a deadlock.

Conflicting statements emerged from the two parties yesterday afternoon, with the former employees charging that the talks have stalled while the company claimed that the process was still continuing. “There has been a breakdown in negotiations since yesterday (Wednesday) because the company is not prepared to change its position.It has adopted a ‘take it or leave it’ attitude,” said one of the retrenched workers.The company, through its negotiating consultant from Ernst and Young, dismissed the claim, charging that the retrenched workers were the ones negotiating in bad faith.”They now want to use the media as a bargaining tool …we consider that to be mala fide (in bad faith) negotiations which we will not accept,” the MVA consultant, Pieter de Beer, charged.De Beer claimed that the talks were still on-going, “some of the workers have accepted the offer from the company and we are now awaiting the majority of the people to come with their counter proposals”.The retrenched workers are pushing for a severance pay equivalent to a year’s salary while the company is only offering one week salary.On Tuesday, the MVA consultant informed all the retrenched employees that the company was willing to pay an additional amount equal to one week’s remuneration on condition that they accepted its settlement offer.”Our client [MVA] intends to commence with the execution of the payment by Friday 17 September 2004,” stated the letter, a copy of which is in The Namibian’s possession.The workers yesterday insisted the offer was still not adequate.”What the company is offering us is a joke, it’s peanuts.We have now decided to seek legal advice on the matter,” an agitated former worker said.In August the MVA embarked on wholesale retrenchments aimed at restructuring the parastatal, reportedly reeling under financial dire straits due to inadequate funding and fraud.In a letter to the workers on August 2, MVA Fund’s Chief Executive Officer Jerry Mwadinohamba stated that the entity needed to reorganise its business operation to limit fraudulent claims, increase efficiency and ensure that the compensation payable to victims reach them.”If the MVA Fund continues with the trend of the past few years, the MVA Fund will most probably not be able to function in the near future,” Mwadinohamba, who assumed leadership of the company in February, warned.The Fund reportedly faces an accumulation of operational losses, administrative losses and an “actuarial deficit” of nearly N$520 million.”There has been a breakdown in negotiations since yesterday (Wednesday) because the company is not prepared to change its position.It has adopted a ‘take it or leave it’ attitude,” said one of the retrenched workers.The company, through its negotiating consultant from Ernst and Young, dismissed the claim, charging that the retrenched workers were the ones negotiating in bad faith.”They now want to use the media as a bargaining tool …we consider that to be mala fide (in bad faith) negotiations which we will not accept,” the MVA consultant, Pieter de Beer, charged.De Beer claimed that the talks were still on-going, “some of the workers have accepted the offer from the company and we are now awaiting the majority of the people to come with their counter proposals”.The retrenched workers are pushing for a severance pay equivalent to a year’s salary while the company is only offering one week salary.On Tuesday, the MVA consultant informed all the retrenched employees that the company was willing to pay an additional amount equal to one week’s remuneration on condition that they accepted its settlement offer.”Our client [MVA] intends to commence with the execution of the payment by Friday 17 September 2004,” stated the letter, a copy of which is in The Namibian’s possession.The workers yesterday insisted the offer was still not adequate.”What the company is offering us is a joke, it’s peanuts.We have now decided to seek legal advice on the matter,” an agitated former worker said.In August the MVA embarked on wholesale retrenchments aimed at restructuring the parastatal, reportedly reeling under financial dire straits due to inadequate funding and fraud.In a letter to the workers on August 2, MVA Fund’s Chief Executive Officer Jerry Mwadinohamba stated that the entity needed to reorganise its business operation to limit fraudulent claims, increase efficiency and ensure that the compensation payable to victims reach them.”If the MVA Fund continues with the trend of the past few years, the MVA Fund will most probably not be able to function in the near future,” Mwadinohamba, who assumed leadership of the company in February, warned.The Fund reportedly faces an accumulation of operational losses, administrative losses and an “actuarial deficit” of nearly N$520 million.