Pay cuts continue at NWR

Hours, salaries reduced

29 August 2021 | Tourism

In July this year, Namibia Wildlife Resorts (NWR) Limited announced the need to cut employees’ salaries as a last resort after it had exhausted all other cost-cutting measures it had instituted over the past 16 months.
NWR Managing Director Dr Matthias Ngwangwama, said that “NWR is probably the first public sector institution to take such a measure. This in itself is not surprising because the tourism sector was devastated by the impacts of Covid-19. Some other organisations were not so lucky and had to close down due to the pandemic.”
He added that implementing the salary cut was one of the most difficult decisions he has had to take since assuming his role. “It is not something I took pleasure in doing, but in the current circumstances, the options were limited. Contrary to what some stakeholders indicated, reducing remuneration and hours is not ‘unlawful’ but regulated in the Labour Act (Act No 11 of 2007). I request that all company stakeholders support the measures that management is trying to implement to ensure the company’s survival and longevity.”
NWR is pleased to observe that some of those who were initially critical of the company’s stance to enact a salary cut, have come to understand its move, which is geared towards securing the livelihoods of its more than 600 staff members.
Being one of the first state-owned enterprises to undertake this route, there was a misunderstanding created that this was an illegal decision being taken by the company. However, the Labour Act makes provision for an organisation to enact a salary cut and reduce employee working hours accordingly for a period not longer than three months.

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