The Namibian Employers’ Federation (NEF) is alarmed and shocked to find out that changes to the Affirmative Action (Employment) Act of 1998 were made and already enacted without due diligence and proper consultation with the employers’ association, contrary to the tripartite arrangement in place. 

“NEF was not aware of the reduction and was not part of the consultations when the decision was made. The employers’ federation’s representative on the Employment Equity Commission was not privy to the decision taken by Mr Utoni Nujoma, Minister of Labour, Industrial Relations and Employment Creation, and the consequent reduction until the government gazette was published, and only notified of the changes during a meeting with the minister,” NEF acting secretary general Helene Ochs said yesterday.  

This reaction comes after the labour minister, Nujoma in consultation with the Employment Service Board (ESB) reduced the prescribed threshold requirements for designated employers from the current 25 to 10 employees. 

This means any employer who employs 10 employees and above is now regarded as a designated employer and is required to comply with the provisions of Part 3 of the Employment Services Act, 2011 (Act No. 8 of 2011) as of 30 September 2023.

The Employment Services Act makes a provision for any designated employer to register with the ministry and report any vacancies within its establishment to the line ministry. 

Ochs said Nujoma has certain powers to determine and gazette provisions and amendments to the Act. 

However, she argues, in this case, the ministry did not consult broadly with key stakeholders on this very important matter that has far-reaching implications for the already struggling economy and all-so-alarming unemployment in the country. 

Ochs feels the decision by the ministry impacts especially micro, small, and medium-sized enterprises adversely and it also has the potential to further exacerbate job creation as well as economic growth. 

Notice of the threshold reduction was published in the government gazette on 30 September 2022. 

A statement issued by labour acting executive director, Otniel Podewiltz this week states that this enables the ministry to link the designated employers and also to register job seekers in terms of employment through Namibia’s Integrated Employment Information System.

Additionally, designated employers are also required to submit profiles of establishments on an annual basis.

The NEF has consulted its members and engaged experts in this regard to soliciting input on how best to approach this matter. 

NEF now plans to further engage the labour minister. 

This will be done either directly or through the labour advisory council in order to revisit the amendments and promulgation of the Act. 

–anakale@nepc.com.na

Pic: NEF

Caption: No consultation… NEF distanced itself from designated employers’ threshold reduction claiming no consultation took place. 

Photo: Emmency Nuukala