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Construction industry moves ahead on minimum wage

Construction industry moves ahead on minimum wage

The construction industry is ahead of the minimum wage curve with the gazetting of the Collective Agreement between the Construction Industries Federation and the Metal and Allied Namibian Workers Union.

The agreement was reached last year in October and gazetted last week on 06 June 2024 which becomes the effective implementation date. The agreement which applies to all employers in construction, remains valid for two years.

Minimum wage and the subsequent increments are relevant for those categories of unskilled workers as defined in the Collective Agreement.

The federation’s Chief Executive, Ms Bärbel Kirchner, commented “We are very happy that our Collective Agreement between the CIF and MANWU is now gazetted. The CIF negotiated on behalf of its members, who had been engaged on four occasions to ensure that our collective bargaining efforts are within the mandate that we obtained from our members.

“For us it is important that the implementation date of the agreement is on the day the Collective Agreement is published in the Government Gazette This will avoid that our members are disadvantaged before the date of promulgation; i.e. that only they would have to adhere to the conditions. Now that the Collective Agreement is gazetted, every single business in the construction sector would have to adhere to it”.

“Adherence to gazetted conditions is crucial for a level playing field in our sector, ensuring that every contractor pays at least the minimum wages, regardless of their affiliation or the nature of their engagement,” she continued.

“Enforcement of the new requirements, including the provision of good standing certificates and payslips, is essential. Clients and labour inspectors must be proactive in ensuring compliance now that the new Collective Agreement is gazetted.”

The minimum wage increase is not a general increase for all industry workers, it applies only to those categories as listed in the Collective Agreement. Furthermore, where an employer is already paying above the minimum wage, no increase will apply.


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