Wage uncertainty at TransNamib

TRANSNAMIB employees face uncertainty over their salaries tomorrow while the bonuses for December are also in the balance.

This was communicated to them by TransNamib board chairperson Paul Smit in an internal memo on Tuesday. Efforts by Smit and TransNamib acting chief executive officer Hippy Tjivikua to address workers in Windhoek and explain to them why the company was unable to pay salaries backfired after the workers felt offended by the late notice. The workers then held a demonstration in front of the company's premises in Windhoek for a few hours. Although TransNamib did not respond to questions yesterday, Smit's memo to the workers seen by The Namibian says the company was doing everything it could to ensure that the workers get their salaries by tomorrow, but not later than 30 November. “However, in the unforeseeable event that this is not possible, delays may be experienced, which will be kept to an absolute minimum, but not later than 30 November 2016,” he stated in the memo. Smit further said unless TransNamib receives money from government or a guarantee for borrowings, there will be no bonus paid this year. Although TransNamib has not been struggling with paying salaries, the company tried to retrench 1 000 workers in 2014 as part of a restructuring plan, but shelved the idea after a public outcry. The works ministry then engaged a consultant in April this year to restructure the parastatal, and permission was sought from government to retrench workers. Smit said the government notified TransNamib in June that it would not allow the parastatal do so. “At the same time, the joint Cabinet committee for treasury and economic development resolved that TransNamib should be assisted with funding for its operational shortfall to an amount of N$162 million over a period of six months from July 2016,” stated Smit, adding that this money was never paid. One of the workers told The Namibian that their Christmas plans have been dashed. “What are we going to do now? We have made so many plans. They do not understand that this affects not only us as employees, but our families as well. What about our plans for Christmas and promises to our children?” the workers asked after the meeting. Namibia Transport and Allied Workers Union president John Kwedhi was unreachable for comment. However, several workers said the union requires that before any salary delay or cut, a 50-day notice must be given. Another parastatal, the Roads Contractor Company, has also been delaying workers' salaries since May this year, mainly due to the financial challenges it has been facing. Update... TRANSNAMIB last night informed The Namibian that contrary to the statement by its board chairperson, Paul Smit, the workers will get their salaries tomorrow. “TransNamib would like to confirm that all its employees will receive their monthly salaries for November 2016 on Friday, 25 November as it is usually the case,” the company's executive spokesperson Struggle Ihuhua said in an emailed response. He said the financial situation of TransNamib is no secret, and they had been engaging all stakeholders. He said they also never announced that the bonus will not be paid. “What we say is that we have engaged the shareholder about the various issues.”