NBWU and FNB sign wage agreement

06 Aug 2013 10:40
WINDHOEK, 06 AUG (NAMPA) – After prolonged salary negotiations, the Namibia Bank Workers’ Union (NBWU) and the First National Bank of Namibia on Tuesday signed an overall wage agreement of 11.3 per cent.
FNB Head of Human Resources Florentia Amwenje and NBWU's Secretary-General Lawrence Ihuhua inked the deal on behalf of the two parties in the presence of the Deputy Minister of Labour and Social Welfare, Alpheus Muheua.
Amwenje said the overall 11.3 per cent includes increased salaries by an average of 7.7 per cent, while the bank will pay 70 per cent of the current medical aid contributions of all employees in the bargaining unit, with employees only paying 30 per cent.
Employees in the bargaining unit’s housing loan qualifying amounts will also improve.
The new housing loan qualifying amounts for employees in Band D will be increased to N.dollars 650 000 from N.dollars 600 000; Band E from N.dollars 450 000 to N.dollars 550 00; and Band F from N.dollars 250 000 to a whopping N.dollars 400 000.
Amwenje said the dates of payment of salary and benefit increases and the discretionary bonuses shall be on 01 August 2013, and the effective date for housing limit increases will be 01 January 2014.
“We are pleased with this outcome, and trust that our employees will continue to serve this great organisation with the positive spirit and vigour we have become accustomed to,” she noted.
On his part, Ihuhua thanked the bank for meeting the union halfway for the benefit of the employees.
“Having arrived where we are today by standing on the shoulder of the Labour Ministry to assist the parties in achieving a common agreement, is a clear indication that the line ministry has sound labour relations and job and income security at the forefront of its priorities,” he beamed.
The bank initially offered 7.5 per cent, which the union turned down as it demanded a 12 per cent-salary increment.
The two parties agreed to the salary increments because of the intervention of the Ministry of Labour and Social Welfare, a day before the union was to conduct a voting process to decide on industrial action or not.