Business Reporter
THE Namibian Building Workers Pension Fund (NBWPF) has announced the mandatory provision of a pension fund for employees in the construction sector, as stipulated in the signed Collective Agreement between the Construction Industries Federation of Namibia (CIF) and the Metal and Allied Namibian Workers Union (MANWU).
The agreement, which came into force on 6 June 2024, outlines the minimum wage payable and employment conditions in the construction sector, and mandates that all employees falling within the categories listed in the Collective Agreement must be registered with the Namibia Building Workers Pension Fund.
The Collective Agreement, published in Namibia’s Government Gazette on 6 June 2024 (Government Gazette No. 8377, Notice 156), establishes the minimum wage payable and employment benefits for workers in the construction sector. As a result, every employer in the construction sector in Namibia is now required to ensure that their employees are registered with the Namibia Building Workers Pension Fund, or provide pension/retirement fund benefits that offer equivalent or superior benefits.
Enwich Kazondu, Executive Principal Officer of the NBWPF, emphasized the significance of the mandatory provision of a pension fund in the construction sector and explained that the provision of a pension fund is a crucial aspect of ensuring the financial security and well-being of employees in the construction sector.
“We are committed to working with employers to facilitate the registration of employees with the NBWPF, in compliance with the Collective Agreement, and to provide valuable pension benefits to support the long-term financial stability of workers in the industry,” Kazondu said.
The Collective Agreement also outlines additional benefits and entitlements for employees in the construction sector, including an annual service allowance, living away allowance, and provisions for protective clothing and safety equipment. It further emphasizes the importance of expected productivity levels, alongside the rights of employees within the sector.
“We urge all employers in the construction sector to adhere to the provisions of the Collective Agreement and ensure the registration of their employees with the NBWPF. By doing so, employers can contribute to the financial security and welfare of their employees, in line with the requirements of the agreement,” added Kazondu.
Justina Jonas, Secretary-General of MANWU, added that it is critical that everyone in the construction sector is aware of the requirements as stipulated in the Collective Agreement.
“Every employer in the construction sector must adhere to it, whether they are large foreign contractors or Namibia’s own contractors, large or small. Everyone must register their workers with a pension fund. The NBWPF is indeed the best option as it is tailored for the building and construction sector. We also want to see that these provisions that call for the mandatory registration of workers with a pension, as well as other minimum employment conditions, are enforced by the labour inspectorate of Namibia’s Ministry of Labour, Industrial Relations, and Employment Creation. Without monitoring and enforcement, the provisions of the gazetted Collective Agreement will be undermined and weakened. So labour inspectors must inform themselves and do their inspections, even in remote places of our country,” Jonas concluded.
Bärbel Kirchner, Chief Executive Officer of the Construction Industry Federation (CIF), added that members of the CIF are well acquainted with the requirements set out in the Collective Agreement, including the provisions for pension fund services.
“The provisions of the Collective Agreement are legally enforceable and applicable to every employer in the construction sector in Namibia. Our members, who also have to adhere to the CIF’s Code of Conduct, are generally aligned with what is stipulated in the agreement. Ultimately, our sector is the first, if not the only sector, that requires that their employees are registered with a pension fund. However, we need to look at those companies that are not members of the CIF that are often in contravention of the Collective Agreement,” Kirchner said.
