The Position of NFCPT on the 2020/2021 Wage Increment Employee Strike

It is our established customs that wage negotiation for the upcoming financial year is considered based on the preliminary performance of the previous years. In this case, we have considered 0% increase on wage for 2020/21 financial year.

This was done considering the performance of 2019/20 financial year where we recorded a decline in both revenue and cash.
However, based on the preliminary performance results for 2020/21, we have engaged with the Union representative (NAFAU) on an urgent notice to counter offer the employees’ salary and benefit adjustment for the 2021/22 financial year.
This include 7% job Grade A, 6% Grade B and 4% Grade C as well as 2% on housing while medical aid remained unchanged. In addition, NFCPT offered to provide a once off cash payout 3% for job Grade A and 2% for Grade B & C on the basic salary.
This offer was however objected and declined NAFAU, demanding that employees should be paid once off cash to the amount of N$12 000 each. They further demanded that salaries and benefits for the 2021/22 financial year should be increased as proposed.
Regarding abolishment of the retirement annuity, both parties have agreed to consult pension funds in view to identify the one that offers the best pension benefits within the next 3 months.
The employees through NAFAU are demanding wage increment of 10% job Grade A, 8% Grade B and 6% Grade C as well as 10% on housing allowance and 70/30 medical aid contribution for the 2021/22 financial year. Whereas they are still demanding a wage increment of 48-57% job Grade A, 18- 42% Grade B and 7-17% Grade C, 10% housing allowance, 80/20% medical aid employer contribution for 2020/21 financial year as well as the termination of retirement annuity.
This is the first time in 5 years that we have not increased annual wage. A principal decision that was taken to give the organisation breathing space for it to recuperate and reverse the negatives.