Africa-Press – Namibia. A STUDY to guide the Ministry of Labour, Industrial Relations and Employment Creation to set a minimum wage bill for the retail sector has been concluded.
This was revealed by the acting executive director in the ministry, Otniel Podewitz, over the weekend at Rundu during a press briefing regarding suspended Cash and Carry employees.
Podewitz said the question of whether a minimum wage in the retail sector will be established is currently under consideration by labour minister Utoni Nujoma, who is the duly authorised person to decide on the issue.
He said an extensive study has been done to determine a fair minimum wage, and a report was presented to Nujoma.
“The minister is currently considering it in order to set the minimum wage nationally,” said Podewitz.
This may not only apply to the retail sector but could be a sectorial determination covering the retail industry.
“I am unable to answer as to when that will happen but what I can confirm is that it’s receiving urgent attention from the minister,” said Podewitz when asked when the report will be out or tabled in parliament.
He said the study was done in 2021, and the report was presented to Nujoma at the start of 2022.
“It is quite an extensive report and still requires some additional work to be done,” Podewitz said.
The different dynamics in the retail sector and other sectors, and setting up a minimum wage has been considered, as well as the current economic situation within the country and the unemployment rate.
“All of those factors need to factor into the study. The intention is to have the final say in the last quarter of 2022/2023, which ends in March. But I am unable to confirm and be certain as to when the minister will do it,” said Podewitz.
The lack of a minimum wage for employees in the retail sector remains a considerable challenge for the Namibians working in the industry, with the majority of retail workers being paid below N$1 500 monthly.
Recently, 276 workers employed by Rundu Cash and Carry were suspended for demonstrating against low wages and unfair labour practices.
The employees are paid a fixed salary of N$600, with overtime of N$650, totalling to a monthly salary of N$1 250.
After heated negotiations following a petition sent by the employees to the ministry two weeks ago, the workers were told to resume work on 8 February.
The negotiating parties involved the governor of the Kavango East region, Bonifatius Wakudumo, the labour ministry, a company contracted by the Rani Group, Employees Placement Services Namibia CC – owned by Tsumeb-based politician Gotty Ndjendjela, and Linus Neumbo, a labour consultant who represented the workers.
The parties agreed on several issues such as salary discrepancies, payslip provisions, lunch hours, unlawful deductions, health and safety, social security, employment contracts and a salary increment of 10% across the board.
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