No increases but no retrenchments - NBL
30 June 2020 | Business
During the early stages of the lockdown, NBL managing director Marco Wenk assured employees that retrenchments as a result of the liquor industry shutdown at that stage, would be an absolute last resort.
“We have instituted various cost cutting measures including salary reductions for executives, while the rest of our more than 900 employees have thus far continued to receive their full pay,” he said in a media release.
Part of the cost cutting measures alluded to by Wenk, included a zero wage increase to be paid in the 2021 financial year (1 July 2020 – 30 June 2021) and no bonuses payable for 2020.
Based on this, an agreement was signed with the union last week.
“The impact of Covid-19 has been severe on the liquor industry,” said NBL manager for human capital Timothy Izaks. “NBL was substantially impacted by the ban on alcoholic sales in Namibia during stage 1 and stage 2 of the lockdown, as well as the alcohol ban in South Africa.
“I am pleased to say that through purposeful discussions, our shop stewards not only understand this impact, but embrace the bigger picture which is O&L’s 2025 strategy. We appreciate the true ownership the shop stewards demonstrated during the negotiation process and signing of the agreement, and thank NAFAU for their valued partnership.”
NBL Fulltime Shop Steward, Asalia Mushinga, expressed satisfaction in the negotiation process, saying: “We had successful and fruitful negotiations. Our good relationship with management contributed significantly to the negotiation process. We understand the position the company finds itself in, and accept the fate of the next financial year with regards to increases and bonuses. At this point, job security and a fixed monthly salary is more important.”
The agreement signed affects 431 NBL employees.