TransNamib Industrial Action
Following the commencement of industrial action in the form of a strike by the bargaining unit of TransNamib, led by NATAU, the company would like to stress that as a responsible corporate citizen, TransNamib respects the rights of workers to strike, and no form of intimidation has taken place against striking and nonstriking workers.
The company is abiding by the strike rules set between the parties whilst operating with the available internal human capital solely. In fact, it has come to our attention, that our non-striking employees of TransNamib are the ones facing intimidation and harassment by striking workers as well as NATAU officials.
We renounce this behaviour in the strongest terms and wish to remind the Union as well as striking employees, that this is against the Labour Act 11 of 2007 and the strike rules as set between us and NATAU. Management will take every measure to protect our workers and have involved the Namibian Police to manage this illegal behaviour.
As a company with the interests of workers at heart, it is also pertinent that the company gives the public a holistic overview of the wage and employee benefits over the years as well as the historical financial challenges of the company. It is important to note that between the years, 2010-2017 the company made accumulated losses to the amount of more than N$ 4 billion. During the same period, however, salary increases of between 6 and 10% were provided to staff on an annual basis.
These increases were given to the employees even though the payroll costs remained in excess of 80% of the total revenue earned. The above-mentioned salary and benefit increases have subsequently led to the unsustainable situation in which the company is finding itself in today. The implications of an unsustainable wage bill are far-reaching, especially for us as TransNamib. Hence, the management of the company has been proactively engaging both the Union and its employees about the precarious financial position the company finds itself.
The last increase in earnings for TransNamib staff was in 2019 wherein the company agreed with the Union to resolve the long outstanding matter of the Housing Allowance. Through this change, we have implemented an updated Housing Allowance Policy, which was specifically targeted at benefitting the lower job grades and the Bargaining Unit within the company. Under the new policy implemented, all permanent TransNamib employees qualified for a monthly housing allowance equal to between 10-30% of their basic salary, of which the highest percentage is afforded to the lowest salary band. This benefit solely doubled the company’s total cost for housing.
Additionally, employees in the Bargaining Unit receive notch increases in their basic salaries annually, on the anniversary of their employment. This is another indication that employees’ salaries have not remained stagnant, but have increased annually due to notch increases. We, therefore, once again, extend an appeal to the Union as well as our employees to assess the situation in its entirety and join hands with the management of the company to work in unity towards transforming the company.
