More pay cuts at NWR
Reduction in basic salary, hours for all employees
09 July 2021 | Tourism
In a media release, NWR Managing Director Dr Matthias Ngwangwama, said that the last 16 months have been the most challenging period that any tourism company has ever experienced. “Each company within the sector took various measures to safeguard its operations and its employees' livelihoods.”
He said that being a state-owned enterprise, NWR cut the basic salaries of their board, managing director and senior management, with the Patterson E-grading, by 25%, in September 2020. “At the same time, NWR and NAPWU agreed on suspending salary increments for 2019/20, suspending normal overtime, Sunday and public holiday payments, and other allowances and benefits from 27 March 2020 up to date.”
Ngwangwama said that all these efforts were made to safeguard the well-being of NWR employees and the business.
“However, with the further challenges that the industry continues to endure, NWR has had to look at other additional measures to sustain its business. On this basis, NWR, in line with section 12 (6) (a) and (b) of the Labour Act, 11 of 2007, will be reducing the remuneration and working hours for its employees from job grades A1 – F1 for operational reasons and, for a period not exceeding three months starting in August 2021.
“This decision was not an easy one to make, since we had hoped that our previous measures and a possible uptick in travel during our high season would improve the situation. However, in the current circumstances where cases are rapidly increasing and affecting Namibia as a travel destination, we do not foresee a marked improvement anytime soon. Therefore, the reduction in hours and basic salary is geared towards giving us some leeway to continue operating under these challenging times,” Ngwangwama said.
The changes will be affected as follows:
• Grade A1 – A5: 10% reduction, with a 10 % reduction in hours (48 minutes, rounded off to 1-hour reduction per day).
• Grade B1 – B5: 10% reduction, with a 10 % reduction in hours (48 minutes, rounded off to 1 hour reduction per day).
• Grade C1 – C5: 15% reduction, with a 15 % reduction in hours (72 minutes, rounded off to 1-hour reduction per day).
• Grade D1 – D5: 20% reduction, with a 20 % reduction in hours (96 minutes, rounded off to 1 hour 30 minutes reduction per day)
• Grade E – F: 25% reduction, with a 25 % reduction in hours (which translates in 120 minutes hours, rounded off to 2-hour reduction per day).