SECTION A
QUESTION 1
[55 Marks]
CASE STUDY: NORED faces union over wage negotiation dispute
By Martin Endjala
The Northern Regional Electricity Distributor (NORED) has been warned not to
engage workers on wage negotiations without the union's presence.
This comes after Nored acting chief executive Lucas Siremo, notified employees of a
planned meeting on 24 September.
The Mineworkers Union of Namibia (MUN) northern leadership rejected the meeting
notice in a letter to Nored on Monday. MUN secretary general George Ampweya has
confirmed the authenticity of the letter from the northern branch .
In the letter, the union demands a 6% wage increment while the electricity distributor
is not willing to give anything. "This is especially unacceptable in light of your own prior
assurance that the company has the capacity to implement a 6% wage increment. To
now retreat from that position is not only deceitful but amounts to negotiating in bad
faith. "We further condemn, in the strongest possible terms, the unlawful and
deliberate attempts by management to bypass the union and meet with our members
directly," reads the letter from the union.
The union describes the company's conduct of holding a meeting with its members as
a blatant violation of the Labour Act, the recognition agreement and the principles of
fair labour relations. "Let it be clear: any attempt to interfere with, intimidate or
undermine our members during these negotiations will be treated as union-busting
and met with the full force of the law," reads the notice.
The union states that it will not hesitate to mobilise, escalate, and take all necessary
legal and industrial action to protect the rights and dignity of its members if
management persists with their current approach.
The employees at Outapi, Ondangwa, Rundu and Katima Mulilo have threatened to
stage a demonstration. Nored spokesperson Simon Lukas says no communication
was issued to employees regarding their attendance at the wage negotiations. "It is an
indisputable fact that wage negotiations are handled by the NORED negotiation team
and the union and not by management. Therefore, the NORED negotiation team will
engage the union to discuss the matters related to wage negotiations," he says. He
adds that the union, through the northern branch, requested official communication
from management regarding the board's decision concerning the wage demand
submission. Thus, on 19 September, he says, the official communication was sent to
the union as requested.
Lukas says NORED's management has stated its intention to engage and update all
staff on the financial position of the company, specifically with the ongoing concern.
2