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TransNamib workers in medical aid dilemma

2023-07-21  Eveline de Klerk

TransNamib workers in medical aid dilemma

WALVIS BAY – Retired employees of the rail and road services operator, TransNamib, face a difficult choice to either pay their own medical contributions or cancel their membership of the fund, starting next year.

This follows the recent announcement by TransNamib’s acting CEO, Webster Gonzo, that the company will no longer pay medical aid contributions for retired employees and their dependents.

Earlier this month, Gonzo informed retired employees; termination of their membership would be from January next year.

The move will impact 387 former employees.

TransNamib spokesperson, Abigail Raubenheimer, said the contributions have become too heavy for the company which “spends N$24 million annually on medical aid contributions for retired employees.”

“We still have to make contributions for current employees,” she said.

Raubenheimer said the company’s challenging financial situation has been communicated to shareholders, employees, the media and the public at large. The declining rail operations and cash flow issues compelled the company to cut costs.

This decision has left some retired employees disappointed, particularly those who require chronic medication, as the discontinuation of these benefits will impact their lives significantly.

“We understand the company’s predicament, but this was one of the incentives included in our retirement package. Having to pay for it ourselves will definitely have adverse financial effects,” said one retired employee.

Meanwhile, Renaissance Health Medical Aid Fund notified current TransNamib employees this week that their membership will be suspended from 24 July because TransNamib had not paid subscriptions for several months. 

Raubenheimer said the company was aware of the matter and is actively addressing it.


2023-07-21  Eveline de Klerk

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