National Housing Enterprise CEO, Gisbertus Mukulu said the demand of 7% salary increment is not financially possible from the housing entity.
NHE employees have since embarked on an industrial action on 24 February, with today marking as day six.
“We value our employees – and if conditions were normal, we would have done all in our power to find a middle-ground to meet some of the monetary demands. However, we must bear in mind that given the current challenging economic climate, a salary increment is not possible,” he said in statement released on Tuesday.
Mukulu added NHE staff members are still employed with full benefits despite the trying times. He further noted nothing positive can come from this strike, as there are no ‘winners’.
90% of the staff voted to go on strike, demanding for an increment, and against nepotism, favouritism and corruption in the parastatal.
NHE is publicly funded and mandated to provide and finance affordable housing to Namibia’s low-and middle-income earners.
The housing enterprise total wage bill for the year is estimated at N$89 799 188, making the staff cost the highest in the company.
“Should the strike continue in its current form, it will worsen the financial position of the company, given that the company won’t be able to pay for salaries and all related overheads in its current environment,” added the CEO.
Mukulu encouraged the striking workers to return to their work stations to continue housing the Namibian nation and find practical solutions to some of the challenges.
He said, at the moment, the company is seized with finding funds that will ensure the sustainability of the organisation to be deemed a going concern.
However, Public Service Union of Namibia (PSUN) secretary general (SG) Matheus Haakuria made it clear they stand firm on the decision to strike until the two parties meet and address the issues.
Responding to questions from New Era, Haakuria stated the union was at the NHE head office yesterday and met with the CEO to stress the importance of dialogue with the employees.
“He did not object anything but assured us that management will be in meetings to find amicable solutions to the demands,” he said.
According to him, there were about three proposals the union made to NHE, given the financial position, but NHE chose to ignore.
He explained one of them was a once-off payment of N$15 000, which was agreed by the negotiating teams and part of the approved budget for 2021/22.
However, he said, NHE reversed the decision and refused to further engage the union. – mndajavera@nepc.com.na