The recent introduction of a national minimum wage of N$18 per hour has sparked concerns among workers’ unions, warning that it may lead to widespread retrenchments.
This follows an announcement by the minister of labour, industrial relations, and employment creation, Utoni Nujoma, regarding the wage increase for all Namibian workers. However, this does not apply to domestic and agricultural workers, whose wages will remain unchanged but are set to rise gradually over three years to reach N$18 per hour.
According to Mineworkers Union of Namibia (MUN) general secretary, George Ampweya, several service station owners, especially from the northern regions and Erongo, fear that the wage hike might force them to lay retrench employees.
“Service station employers have stated that the minimum wage increase is too extreme, and they are pushing for a reduction. Six station owners from the northern regions and Erongo have approached us, saying they will have to retrench some employees because the increase will cripple their businesses,” he said.
Ampweya pointed out that many employers were previously paying their workers N$9 per hour. “The sudden jump to N$18 per hour, with only a three-month adjustment period, has left employers struggling to cope with the sharp rise in wages.”
He also noted that the current minimum wage is still inadequate.
“While the introduction of the national minimum wage is a step in the right direction, it is not enough to sustain a household of three people and their children. We commend the improvement but would like to push the government to do better,” Ampweya added.
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