Standard Bank Namibia recently signed the Wages and Benefits Agreement with the Bank Workers Union of Namibia (BAWON) putting into effect a 6.5 percent increase for the bank’s effective as from the 1st of March 2014.
The latest agreement was signed on Thursday the 6th of February 2014 at Standard Bank’s Head Office in Windhoek.
The agreement which comes after three days of fruitful negotiations reveal salary increases and related benefits for Standard Bank’s employees for the financial year March 2015 to February 2016.
Welcoming this gesture, Standard Bank Namibia’s Chief Executive Vetumbuavi Junius Mungunda said the employees are the key pillars of the Bank’s strategy and increased productivity.
“Standard Bank Namibia is a big employer of 1 500 people and therefore a significant contributor to the country’s employment and economy. We have refreshed our ambition to be an employer of choice in Namibia. In this regard, we want to deepen our engagements and conversations with our staff on a regular basis as well as strengthen our training and recognition programmes in the bank. Our plans for the bank is to have our employees at the heart of the bank’s strategy and plans, said Mungunda.
In his remarks, Secretary General of BAWON Thomas Muchima welcomed Mungunda to the banking fraternity as new Chief Executive of Standard Bank Namibia saying that the union looks forward to quality and mutually beneficial labour relations.
“BAWON’s primary focus during these negotiations was on benefits. And we are pleased with the increases in company contributions to member benefits such as medical insurance, rental allowance, housing subsidy and the newly introduced transport allowance,” said Muchima.
The signed wage agreement is as follows:
1. SALARY INCREASE
That an average increase of 6.5% be applied to the basic salaries of all eligible permanent non-managerial employees, this effective 01 March 2015 and this so to be distributed on the principle of pay for performance, measured in terms of the Enduring Performance Management (EPM) process. Employees who were thus rated as “met expectations” following the 2014 performance assessment shall receive an increase of 6.5% to their basic salaries.
2. MEDICAL INSURANCE (BLUE)
That the monthly contribution by the employer in respect of medical insurance for all permanent non-managerial employees be increased from 67% to 70% at cost to the employer and that the monthly contribution by all employees as members of Blue be reduced to 30%, this on the current individual option exercised and this so effective as from 01 March 2015.
3. RENTAL ALLOWANCE
3.1 That the current monthly Rental Allowance received by all permanent non-managerial employees who do not qualify for housing subsidy and/or who do not reside in Bank owned property and/or who do not have a registered bond, be converted into a Housing Subsidy - Rental and that it be increased from N$ 400.00 to N$ 500.00 monthly, this so effective as from 01 March 2015.
3.2 That the monthly Rental Allowance of N$ 500,00 be increased annually on 01 March of every year for the next three (3) years up and until 01 March 2018, this with the overall average inflation rate for the respective year, provided that such average overall inflation rate is not below 5%, upon which the parties agree to re-negotiate the percentage increase.
4. HOUSING SUBSIDY
4.1 That Housing Subsidy received by permanent non-managerial employees be calculated based on the difference between the actual lending rate offered to the employee by Standard Bank Namibia and 5% (previously 6%), this to the maximum of N$ 650 000.00 (previously N$ 600 000.00).
5. TRANSPORT ALLOWANCE
5.1. That all permanent non-managerial employees be paid a monthly Transport Allowance of N$ 200.00 as newly introduced benefit to employees, this effective as from 01 March 2015.
5.2 That the monthly Transport Allowance of N$ 200,00 be increased annually on 01 March of every year for the next three (3) years up and until 01 March 2018, this with the overall average inflation rate for the respective year, provided that such average overall inflation rate is not below 5%, upon which the parties agree to re-negotiate the percentage increase.
Contact person and issued by:
Surihe Gaomas-Guchu; Manager: PR & Corporate Communication
Standard Bank: Marketing Department
Tel: +264 (61) 294 2529
Cell: 081 2187473
E-mail: [email protected]