RA faces N$7.8-million payout after labour commissioner ruling on salary dispute

The Roads Authority (RA) board will decide whether to pay 28 managers N$7.8 million after a labour commissioner ruling.

RA chief executive Conrad Lutombi says the mid-level managers initially demanded N$28 million, but the labour commissioner ordered the authority to pay only N$7.8 million.

The mid-level managers lodged a complaint at the Office of the Labour Commissioner, following the then-parastatal’s board approval of a remuneration structure that excluded them from a market-related salary adjustment. The RA board, which has the mandate to construct and maintain Namibia’s roads, took this decision in 2014. The remuneration structure was implemented in 2014, but the aggrieved managers only took the matter to the Office of the Labour Commissioner in 2019, demanding to be compensated with N$28 million.

The commissioners ordered the authority to RA to pay the managers for the period from 2019 to 2023. “We only received the orders from our lawyers two days ago and will decide after discussing it with the board. However, we always intended to pay them. Our calculations showed an amount of approximately N$8 million, but they demanded N$28 million, which is why we defended the matter. “If the board decides we should pay, we will. N$7.8 million is significantly less than their initial demand,” Lutombi says.

He says while the RA may be willing to pay N$7.8 million, the employees who took the company to court may not be satisfied with the order.

He says three different boards of directors have discussed the matter, with all three rejecting the N$28-million demand. Lutombi says he cannot tell when the matter will be discussed as he is still on leave. The aggrieved managers’ lawyer, Rauha Shipindo, yesterday said her clients claim the discrimination took place from 2014, when a policy pertaining to employees excluded them.

“They were claiming unfair discrimination because of that partial implementation. They claimed from 2014 to 2023.

“The arbitrator said because they only launched the dispute in 2019, he could only award them from the 2019 financial year, which amounted to N$7,8 million,” she said.

Shipindo said the employees could not be remunerated for the years before they launched their application.

“They will consult with me next week when we re-open on the way forward,” she said.

The Office of the Labour Commissioner last week ordered the RA to pay 28 employees a collective N$7.8 million. The employees lodged a complaint at the labour commissioner, accusing the state-owned entity of unfair labour practices regarding remuneration packages for 2014/15, which they said excluded them.

The case was lodged in July 2019, and the order was made on 2 January this year. The RA has been given until 3 February to pay the involved employees. “Proof of payment must be forwarded to the Office of the Labour Commissioner in Windhoek,” part of the order states.