20200401_namibiansun_Covid-19_Employment_conundrum


20200401_namibiansun_Covid-19_Employment_conundrum



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Covid-19: Employment conundrum
_ ica
Most Namibians are in insecure forms of employment, with low salaries often as low as
N$1 500-N$2 500 per month, according to the Economic Social Justice Trust. Photo
Nampa
The focus this time has to be on household support. - Herbert Jauch, Chairperson: ESJT
Jo-Maré Duddy - The Economic Social Justice Trust (ESJT) yesterday called on government
to intervene to protect Namibians against the impact of Covid-19 on issues ranging from
job security to home loans and price hikes.
ESJT chairman Herbert Jauch said a key issue during the coronavirus crisis is to “ensure
survival”.
“There is no doubt that the economic consequences will be severe, but unlike during the
global financial and economic crisis of 2008, the focus this time has to be on household
support and not on bailing out corporations,” Jauch said.
Although welcoming president Hage Geingob’s declaration of a state of emergency, the
ESJT is concerned about the impact the lockdown will have on employment.
The Labour Act states that work can be reduced for a period of at least three months.
Workers need to receive at least 50% of their wages during this period, Jauch
emphasised.
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“This, however, is not sufficient to deal with the current crisis as some employers have
already started retrenching workers or sending them home on unpaid leave,” he said.
The ESJT called on government to pass additional regulations that explicitly prevent the
retrenchments of workers during the lock-down.
“Employers should be required to continue paying their staff and in cases where they are
financially unable to do so, they must provide proof to government as a precondition to
be assisted through tax exemptions etc. A particular focus will have to be on small and
medium-size enterprises who will face the greatest challenges in maintaining and paying
workers,” Jauch said.
Employers
The ESJT’s statement comes a day after the Namibian Employers’ Federation (NEF) issued
a statement, saying the “current situation is without precedent and that all Namibians
face similar problems, of sacrifices and compromises that will have to be made by all,
based on negotiation and creating understanding”.
“In order to keep businesses open and contribute optimally to Namibia's economy and
ensure Namibia’s economic survival, it is critical that an amicable solutions is found,
which might require a compromise from all sides,” said the secretary-general of the NEF,
Daan Strauss.
The NEF said Friday’s announcement by the executive director of the ministry of labour,
industrial relations and employment creation, Bro-Mathew Shinguadja, urging employers
across all sectors to fully pay employees in March and April was not in line with tripartite
meetings which took place last week.
He said the announcement resulted in “great confusion between employers and
employees” and said the NEF was “very disappointed that the announcement made by
the ministry of labour does not reflect a common position of the stakeholders present”.
Cash in households
The ESJT yesterday said only a minority of Namibians have permanent jobs with income
security and benefits.
“The majority are in insecure forms of employment, with low salaries often as low as N$1
500-N$2 500 per month. Many are in seasonal or contract employment or have no
sources of income at all, depending on relatives and friends for survival,” Jauch said.
“In a situation like this, government must immediately step in and the most effective way
are cash grants to households,” added.
Jauch said support for vulnerable households can be partly funded through the reserve
fund of the Social Security Commission, which must be directed accordingly.
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“It has a special responsibility to provide social protection for Namibians and has to take
extraordinary steps in this time of crisis. Likewise, NamWater and NamPower have to be
instructed to render the required support to households and municipalities,” he said.
The ESJT also urged government to declare a moratorium on rent and bond payments so
that nobody loses housing or falls into further debt.
“This cannot be left at the discretion of financial institutions,” Jauch said.
The ESJT furthermore said immediate steps should be taken to stop “racketeering and
price hikes on essential goods like food, hand sanitisers, masks, etc.”
“This is something we need to follow immediately as some shops are already guilt of
racketeering,” Jauch said.
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