Namibian Employers Federation Secretary-General, Daan Strauss, said the proposed N.dollars 20 per hour as minimum wage by some unions is not ideal in the current economic situation, as some businesses might be forced to close down.

Strauss made the remarks at a public hearing to discuss the introduction of the national minimum wage organised by the Wages Commission under the Ministry of Labour, Industrial Relations and Employment Creation here Saturday.

National Union of Namibian Workers consultant Kola Omomowo at the hearing said if the government wants to address poverty and inequality, then it should compel every employer to pay their workers N.dollars 20 per hour for normal working hours, which should exclude weekends and public holidays.

He said that the implementation of the national minimum wage is imperative in order to comply with the constitution for the sake of the social wellbeing of people.

‘National minimum wage should be informed by social justice rooted in the satisfaction of basic needs of workers and their families, the minimum wage should be set at N.dollars 20.00 per hour,’ said Omomowo.

However, Strauss cautioned that if the government wants to implement a specific minimum wage, then every aspect should be considered because some companies have been struggling to pay salaries since the 2016 economic recession, which was made worse by the outbreak of Covid-19 in 2020.

‘It is good to remunerate people for what they do, but it will not make sense paying good salaries for few months then close down because you can’t pay anymore. For instance, we have security companies that are already struggling to pay N.dollars 12 per hour, then you force them to pay N.dollars 20 per hour. For how long do you think they will survive? They will close down, it will collapse businesses,’ said Strauss.

Government he suggested should rather make it easier for investors by reducing some regulations and laws that are frustrating investors and discouraging them from investing in the country. The only answer to economic development is new investment, new business and as a result, new job opportunities with decent remuneration will emerge, he concluded.

Source: The Namibian Press Agency