Standard Bank rejects the only means of its profit share in Namibia: Muchima

Standard Bank only pumps money into the Namibian economy through its employees, and still refuses to their salary increment Bank Workers Union of Namibia (BAWON), Thomas Muchima has said.

Speaking at a media conference here on Tuesday, Muchima explained that the bank rejected the union's proposed 6.2 per cent for the 2019/20 financial year and firmly offered a 5.2 per cent solution which the union declined.

Muchimaemphasised that despite the bank's N.dollars 400 million profit in the previous financial year, the bank only contributes to the country through their employees' salaries apart from their social corporate responsibility, which he said every establishment is prescribed to do.

Despite the current economic situation Standard Bank is making a profit, the profit is being shipped out of Namibia. They do not reinvest the profit back into Namibia and they argue that the do so through their social corporate responsibility, he stressed.

He expressed that their proposed increase will warrant N. dollars 40 million from Standard Bank's N.dollars 400 million profit only.

However, the unionist said the bank does not want this as it will mean their shareholders will receive less dividends which they will not accept.

How come employees work hard for shareholders' dividends, but the employees who generated the N.dollars 400 million do not get the same sort of recognition, Muchima argued.

According to Standard Bank's 2018 annual report, it made N.dollars 475 million in the previous financial statement.

The unionist further explained that the next step will be to have a ballot countrywide to its 1300 members to decide on whether a strike will be declared.

The intention of BAWON and its members is not to go on strike, but if we are to be pushed in the corner, we will be left with no choice but to embark on a peaceful nationwide demonstration, Muchima said.

He also asked that whether the 1 per cent difference of 6.2 per cent to 5.2 per cent it will result in a loss for Standard Bank.

In a statement issued by the bank on Tuesday stated the average 5.2 per cent salary increase offered by the Bank is significantly higher than the 4.1 per cent inflation rate.

In fact, more than 60 per cent of Standard Bank employees would be getting an increase of between 5.5 per and 6 per cent based on their 2018 performance, it noted.

It further noted that if a strike is decided upon, the Bank has in place contingencies to ensure that disruption to its services are kept to an absolute minimum.

Source: Namibia Press Agency