Section B: Structured questions (answer all questions)
Question 2
Read the following case study and answer the following questions.
(80 marks)
NHE CEOsay salary increment impossible ...strike enters day six.
National Housing Enterprise CEO, Gisbertus Mukulu said the demand of 7% salary increment is not
financially possible from the housing entity.
NHE employees have since embarked on an industrial action on 24 February, with today marking as day
six.
"We value our employees- and if conditions were normal, we would have done all in our power to find
a middle-ground to meet some of the monetary demands. However, we must bear in mind that given
the current challenging economic climate, a salary increment is not possible," he said in statement
released on Tuesday.
Mukulu added NHE staff members are still employed with full benefits despite the trying times. He
further noted nothing positive can come from this strike, as there are no 'winners'.
90% of the staff voted to go on strike, demanding for an increment, and against nepotism, favouritism
and corruption in the parastatal.
NHE is publicly funded and mandated to provide and finance affordable housing to Namibia's low-and
middle-income earners.
The housing enterprise total wage bill for the year is estimated at N$89 799 188, making the staff cost
the highest in the company.
"Should the strike continue in its current form, it will worsen the financial position of the company, given
that the company won't be able to pay for salaries and all related overheads in its current environment,"
added the CEO.
Mukulu encouraged the striking workers to return to their work stations to continue housing the
Namibian nation and find practical solutions to some of the challenges.
He said, at the moment, the company is seized with finding funds that will ensure the sustainability of
the organisation to be deemed a going concern.
However, Public Service Union of Namibia (PSUN)secretary general (SG)Matheus Haakuria made it clear
they stand firm on the decision to strike until the two parties meet and address the issues.
Responding to questions from New Era, Haakuria stated the union was at the NHEhead office yesterday
and met with the CEOto stress the importance of dialogue with the employees.
"He did not object anything but assured us that management will be in meetings to find amicable
solutions to the demands," he said.
According to him, there were about three proposals the union made to NHE,given the financial position,
but NHE chose to ignore.
He explained one of them was a once-off payment of N$15 000, which was agreed by the negotiating
teams and part of the approved budget for 2021/22.
However, he s?id, NHE reversed the decision and refused to further engage the union. -
mndajavera@nepc.com. na
The Newera newspaper {2023-03-02}
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