Staff Reporter
THE National rail company, TransNamib, has stated that previous salary increases provided to employees have led to a financially unsustainable situation within the company, adding that any further increases to the company’s wage bill would have far-reaching consequences.
This comes as the majority of the company’s workers have downed their tools nationwide, leading to an interruption in rail services.
Abigail Raubenheimer, TransNamib’s spokesperson, shared that between 2010 and 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, Raubenheimer said.
She added that the above-mentioned salary and benefit increases have subsequently led to the unsustainable situation in which the company finds itself 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,” Raubenheimer said.
The spokesperson further noted that 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, TransNamib implemented an updated Housing Allowance Policy, which was specifically targeted at benefitting the lower job grades and the Bargaining Unit within the company, Raubenheimer said.
In addition, under the new policy implemented, all permanent TransNamib employees qualified for a monthly housing allowance equal to between 10% and 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,” Raubenheimer said.
The company’s Chief Executive Officer (CEO), Johnny Smith, in the meantime has also ordered that there shall be no leave taken by the employees who have opted not to strike.
He added that those striking might possibly not get their salaries for the month of August.
“As things stand right now, we hereby remind all workers of the No-Work-No Pay principle that is already in effect as from yesterday. It is also unfortunate that all salaries for August 2022 and onwards are now officially in jeopardy,” Smith said.
He stated it has come to his attention that certain officials of the Union as well as striking employees have encroached on the company’s premises in order to intimidate and threaten non-striking employees.
“This is illegal and against the Labour Act 11 of 2007. These incidences have been taken directly to the Police and Management will communicate same in the strongest terms to NATAU,” Smith said.
