Ministry Criticizes Security Firms for Wage Issues

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Ministry Criticizes Security Firms for Wage Issues
Ministry Criticizes Security Firms for Wage Issues

Africa-Press – Namibia. The Ministry of Justice and Labour Relations has vowed to enforce compliance with minimum wage laws after security guards reported being underpaid.

The government approved the phased implementation of a national minimum wage for security guards effective from 1 January.

This means all security staff should receive N$13.50 per hour, with further increases to N$16.00 in 2026, and N$18.00 in 2027.

Executive director of justice and labour relations Nghidinwa Daniel says follow-up inspections with security companies are on the cards to confirm that companies are complying with the new minimum wage order, overtime payments and work done on Sundays and public holidays.

This follows accusations that security company Omeya Investment CC was underpaying staff, prompting the Namibia Security Workers Union to stage a protest.

The ministry investigated and confirmed that Omeya Investment was paying outdated wages of N$8.75 per hour, instead of the current rate of N$13.50 per hour.

“The government is committed to protecting workers’ rights and will ensure full enforcement of the law. Employers must meet all wage and labour law requirements, or the ministry will take action,” Daniel says.

The union also alleged that around 50 workers were fired after raising complaints which the company has denied, saying the workers’ contracts had simply expired.

The ministry has advised the affected workers to file cases with the labour commissioner if they feel they have been unfairly dismissed.

It was also found that the company did not pay workers for overtime work done, and working on Sundays and public holidays.

“We hereby order the company to comply with the minimum wage and rectify other detected violations.

“The ministry will conduct a follow-up inspection before the end of May to confirm compliance,” the executive director says.

Omeya Investment CC managing director Johannes Shuuya blames the City of Windhoek for his company’s failure to implement the newly gazetted national minimum wage.

He cites stagnant contract rates as the main barrier.

Shuuya says his hands are tied due to the City of Windhoek’s refusal to revise his contract rate since 2018.

“They have been paying me N$14.45 per hour since 2018 – that rate has never changed. After deducting VAT of N$2.16, I’m left with N$12.29. That’s already below the minimum wage, and we haven’t even talked about operating costs,” he says.

He says unless the city adjusts its payment structure, he may be forced to lay off some of his 286 staff members, which would contradict national employment creation goals, he says.

The City of Windhoek has confirmed receipt of Omeya Investment CC’s letter requesting an adjustment, as well as declining it, arguing that the current contractual hourly rate it pays is already above the statutory minimum wage of N$13.50 per hour.

“The City of Windhoek maintains it is in substantial compliance with applicable labour and procurement regulations. The contractual rates were mutually agreed upon at the time of award and are fixed.

“The contract does not make provision for automatic or unilateral adjustments due to subsequent wage increases,” municipality spokesperson Lydia Amutenya says.

The municipality has further accused Omeya Investment CC of unfair remuneration practices, alleging deductions of N$400 from each guard for transport, while simultaneously claiming an inability to meet operational costs.

“Despite being paid N$10 750 per site, per guard by the City of Windhoek, Omeya pays its guards a basic salary of only N$2 205, indicating a profit margin to the company of approximately N$8 545 per guard.

“These figures raise serious concerns about the company’s internal wage policies, which appear disproportionate and misaligned with principles of fair labour practices,” Amutenya says.

The government is facing criticism for awarding contracts to security companies which do not comply with minimum wage requirements and other labour laws.

The Namibia Security Labour Forum and other unions have expressed concerns that these non-compliant companies are exploiting their workers and undermining fair competition.

The Namibia Transport and Allied Workers Union recently threatened to take legal action and press criminal charges against companies not complying with the recently instituted minimum wage requirements to recover “workers’ stolen wages”.

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