A minimum wage increase will soon be applicable to the construction sector. The new salary scale for the sector will come into force once the signed collective agreement between the Construction Industries Federation (CIF) and the Metal and Allied Namibian Workers Union (Manwu) is published in the government Gazette.

CIF and Manwu recently agreed on the collective agreement, which has since been submitted to labour minister Utoni Nujoma to commence with the promulgation process. 

“The increase for the first year is 5% on the previous minimum wage payable; and for the second year, there will be an additional increase of 4% on the minimum wage payable of the previous year. That would mean that in the first year, the minimum wage payable for an unskilled labourer will be N$18.72 per hour and in the second year N$19.46 per hour. All other conditions of employment mostly remain the same as in the previously gazetted collective agreement,” read a joint statement from CIF and Manwu. 

However, the two entities emphasised that quality standards of personal protection equipment (PPE) in the construction sector needs to be upheld. Both the CIF and Manwu stressed that PPE needs to be of SABS (South African Bureau of Standards) or similar standards. This is because some contractors previously disregarded the quality of PPE, in order to keep the costs down. 

In addition, employees covered by the collective agreement, must be issued with two pair of free overalls annually, as well as free safety boots which need to be issued every two years. 

“Hard hats and gum boots also become relevant in defined areas. Gum boots must be returned to the employer after the relevant activity in the defined area is completed,” read the joint statement.  

“We must bear in mind that these negotiations took place under very trying circumstances. Growth in the construction sector remains elusive, and many of our local contractors find themselves competing with foreign contractors, when they desperately need work to be able to keep on sustaining their businesses, which indeed has also again led to retrenchments,” said chief executive officer of the CIF Bärbel Kirchner. 

“I am truly happy that we reached an agreement amicably, as this was not a given. Indeed, we engaged our members four times to ensure our collective bargaining takes place within the confines of our mandate,” Kirchner added. 

The previously negotiated and gazetted collective agreement, (government gazette No. 7675, 2 November 2021) remains in force until 1 November 2023 while the implementation date of the new collective agreement occurs once it has been gazetted. Then, and only then, the newly negotiated minimum wages payable and the minimum employment conditions come into force. 

“It is critical that everyone in our sector adheres to the gazetted conditions as per the collective agreement. This will ensure a level playing field and that every contractor pays at least the minimum wages payable. That means every contractor in our sector, irrespective of whether they are engaged by government authorities or by the private sector; it is also irrespective of whether the contractor is a member of the CIF or not,” Kirchner stipulated.  

“Having said that, we need to make sure that it is indeed enforced. Clients should sporadically ask for good standing certificates of the Social Security Commission and payslips of employees on sites; as well as prove that the workers on site are members of a pension fund. It is also critical that labour inspectors acquaint themselves with the new requirements once the new collective agreement is gazetted,” said Kirchner. 

Secretary general of Manwu, Justina Jonas said: “Manwu appreciates the conclusion of the agreement, especially the contractors through CIF who besides facing economic challenges could still ensure that the importance of workers’ well-being is recognised and appreciated. As the sector is going through a lot of challenges, Manwu continues to advocate for fairness and justice for construction workers especially those that are exposed to precarious work by foreign contractors who are awarded big projects at the expense of local contractors”.

“We believe that this increase will make a difference in the working and living conditions of construction workers and we appeal that all contractors countrywide comply with the minimum wages and employment conditions. We will continue to strengthen enforcement to ensure that all contractors especially foreigners and tenderpreneurs, are adhering to the minimum wages. We thank CIF leadership for bargaining in good faith for the benefit of the industry,” Jonas added.