Ministry of Labour and Social Welfare
Introduction
Prior to Namibia’s independence, the Department of Manpower was an extension of the South African Ministry of Manpower Development, which was characterised by systematic discriminatory policies on wages and labour conditions based on race, gender, ethnicity and political affiliation. This situation constantly provoked occurrences of industrial unrest and disharmony between employers, employees and trade unions. Continued unfair conditions of employment, inadequate occupational health and safety standards, and lack of freedom of association and suppression of trade unions further aggravated the unstable labour relations. In general, the Department of Manpower had put more emphasis on strengthening the oppressive mechanisms of the South African apartheid regime than addressing human resource issues.
The ministry comprises four directorates, namely, the Directorate Employment Services, Directorate Labour Services, Directorate Labour Relations and the Directorate General Services. The two agencies, the Social Security Commission and the Labour Advisory Council also form a part of the ministry.
Achievements
Legal Framework
The Labour Act (Act No. 6 of 1992)
The Act aims to promote sound labour relations and fair employment practices by encouraging freedom of association, formation of trade unions to protect workers’ rights and interests, and the formation of employers’ organizations. It lays down certain obligatory minimum basic conditions of service for all employees, and provides legal protection for the health, safety and welfare of men and women at work.
The Affirmative Action (Employment Equity) Act (Act No. 29 0f 1998)
This legislation, a recent entrant in Namibia’s statues, is a serious attempt at bringing about equality of opportunity in employment, improving conditions of disadvantaged, and eliminating discrimination. The Act also provides for the establishment and appointment of an Employment Equity Commission whose functions are to establish awards recognising achievements in furthering its objectives.
The commission strives to facilitate training programmes, technical or other assistance, provision of expert or specialised advice and information and guidance on implementing affirmative action in the work place.
The Social Security Act (Act 34 of 1994)
The social security system in Namibia is an integral part of the government’s efforts to promote the welfare of the people. Two principal pieces of legislation governing the social security scheme in Namibia are the Workmen’s Compensation Act (30/1941), as amended, and the Social Security Act (34/1994).
The Workmen’s Compensation Act (30/1941), as amended, calls for the establishment of the Accident Fund and Accident Pension Fund and provides the framework for insuring employees against loss of earnings resulting from employment injuries and diseases contracted in the course of employment. Basic contingencies that are being covered are temporary and permanent disablement, sickness and death resulting from employment-related incidents.
The Social Security Act was promulgated to provide for the establishment, constitution, powers, duties and functions of the Social Security Commission; to provide for the payment of maternity leave, sick leave benefits and death benefits to employees and to establish for that purpose the maternity leave, sick leave and death benefits fund; to provide for the payment of medical benefits to employees and to establish for that purpose the national medical benefits fund; to provide for the payment of pension benefits to retired employees and to establish for that purpose the national pension fund; to provide for the funding of training schemes for disadvantaged, unemployed persons and to establish for that purpose the development fund; and to provide for incidental matters.
The Social Security Act’s provisions are being met with the establishment of various funds in order to provide an adequate safety net for the workforce of this country. These include the Maternity Leave, Sick Leave and Death Benefit Fund (MSD), the National Medical Benefit Fund, the National Pension Fund; and the Social Security Development Fund. Contingencies covered by the established provisions are loss of, or reduction in, earnings resulting from child bearing, sickness, old age, permanent disability and death. Once established, the Social Security Development Fund will aim to cater for the socio-economically disadvantaged persons (i.e., the unemployed) and students enrolled at institutions of higher learning through conducting training and employment schemes, granting of bursaries, loans and other forms of financial aid.
As a member state of this international body, the government has not only ratified some of these important instruments, but has also brought about the necessary and enabling environment to enforce them. Out of the seven core conventions, government has ratified five, and has developed competencies to enforce two of them, namely, Convention 87 concerning freedom of association and protection of the right to organise, and Convention 98 concerning the application of the principles of the right to organise and to bargain collectively.
The remaining five core conventions (29, 105, 100, 111 and 138) are being studied and preliminary consultations with a view to enforcement are underway with the social partners.
Social Security
The Social Security Commission is entrusted with the administration of multiple social security schemes. In view of this, it is imperative that the commission continuously adapts its organisational structure and procedures with the objective of achieving high levels of efficiency and customer satisfaction.
When the commission commenced its operations in 1995, work processes were strictly divided according to schemes, for example, Employees’ Compensation Fund (ECF) and the Maternity Leave, Sick Leave and Death Benefit Fund (MSD). Division of work processes along these lines made co-ordination of activities somewhat difficult and led to duplication of efforts and administrative bottlenecks. Re-organising the work processes along functional lines, i.e., Registration, Claims, Assessments and Collections, eliminated these problems. It goes without saying that the launching of each new scheme would necessitate a comprehensive review of existing procedures and structures to ensure efficiency. The commission is in fact currently engaged in the comprehensive reengineering of all its business processes. The new processes will enable the commission to meet the challenges ahead and enhance customer service.
The total staff complement of the commission stands at 134. It became apparent within the short existence of the commission that a well-trained staff complement is essential for it to succeed in its endeavours. With this in mind, a comprehensive training-needs assessment was conducted and it revealed that such needs are pervasive, extending to the governing board, the top management, and heads of divisions/sections and rank and file workers. Therefore, initiatives were taken with the help of our co-operation partners to launch extensive training at all levels.
External training of staff in other African countries, primarily through training attachments to social security schemes in countries like Zimbabwe, Mauritius and Ghana was facilitated. The commission also organised a Strategic Planning Workshop which culminated in the adoption of a strategic plan to guide the commission for the next three-year cycle.
Modern information technology is playing a catalytic role in improving service provision and efficiency in institutions in all sectors of the economy. In view of this, the commission acquired the services of a computer consultant with the assistance of the UNDP and ILO and the Norwegian government to assess the status of its computerisation and to recommend the future course of action. The consultant produced a technical report that contained an Information Technology (IT) Strategic Plan. This IT Strategic Plan spans over a five-year period and provides a framework for future computerisation in the Social Security Commission. It also sets out the future hardware, software and IT human resources requirements for the organisation. The IT Strategic Plan will enable the commission to make optimal use of modern technology for increasing the operational efficiency of the institution.
The initial problems experienced with the registration of membership for the MSD Fund and ECF Fund have been solved and the process is now gaining momentum. A summary on the registration and membership of the existing funds are indicated in the table below:
Table 1: Registration of membership of MSD Fund and ECF Fund
Period |
MSD Fund |
ECF Fund
|
||
Employers |
Employees |
Employers |
Employees |
|
| 1996 | 2 730 |
2 598 |
9 052 |
N/A |
| 1997 | 25 000 |
221 683 |
10 044 |
N/A |
| 1998 | 25 400 |
281 783 |
12 000 |
N/A |
| 1999 | 29 462 |
292 555 |
14 652 |
N/A |
From an estimate of 400 000 employees in Namibia, a total of 292 555 are registered with the commission as members. This figure includes both active and inactive employees.
Distribution of the social security cards to registered employees is also gaining momentum and thus far a total of 220 600 cards have been distributed. Registered employers are also issued with employers’ certificates and 18 936 certificates have been issued so far.
Considerable progress has also been made with preparations for the establishment of the three outstanding funds, namely, the National Pension Fund, the Social Security Development Fund, and the National Medical Benefit Fund. It is imperative that exhaustive consultations are held with the various stakeholders before provisions of these funds are implemented. The commission is encouraged with the consultation process thusfar and envisages implementing these funds within the next twenty-four months.
The commission has also brought its services closer to its members in the various regions through the opening of the branch offices in Oshakati (serving the Oshana, Ohangwena, Omusati, Oshikoto and Kunene regions), Walvis Bay (serving the Erongo Region), and Keetmanshoop (serving the Hardap and Karas regions). Windhoek Office serves the Khomas, Otjozondjupa, Okavango, Caprivi and Omaheke regions. Investigations for the establishment of additional offices at strategic locations are at an advanced stage.
Tripartism and Consultations
Establishment of a tripartite Labour Advisory Council and its operations led to the ratification of five Conventions of the International Labour Organisation by Namibia. As a coordinator of the Affirmative Action Project 1994-1999, the office consulted meaningfully throughout the process with the representatives of social partners and other stakeholders. These consultations resulted in the enactment of the Affirmative Action (Employment) Act (Act 28 of 1998) which eventually led to the establishment of the Employment Equity Commission of Namibia. Labour Law Review
Incidents of significant industrial unrest after the promulgation of the Labour Act led the Ministry of Labour and the social partners (employers and workers) reviewing the Act.
The International Labour Organisation, through its Southern African Area Office, consulted with the representatives of the Ministry of Labour and the social partners in Namibia and has offered assistance through a pilot project to promote labour peace and stability. In January 1998, the ministry and the social partners agreed to establish a tripartite task force with the following terms of reference:
1. to identify the capacity building requirements among the three social partners to enable them to promote labour peace;
2. to develop dispute prevention and dispute settlement capacity, and to develop an appropriate strategy to meet those requirements; and
3. to place proposals before the Labour Advisory Council.
Continued training sessions were also conducted for labour inspectors and labour relations officers and management to improve conciliation/mediation skills as a measure to respond to the immediate dispute settlement needs that exist in the labour relations environment in Namibia.
Complementary to the data collection exercise, the ministry was occupied with the development of the Namibian Standard Classification of Occupations (NASCO) to classify the existing occupational structure in Namibia keeping in view the International Standard Classification of Occupations (ISCO-88). This is to serve as a basic tool for collecting data and analysing the occupational structure of the Namibian labour force.
The ministry has managed to establish employment offices in ten of the thirteen regions of the country, and plans for establishment of offices in the remaining regions are at an advanced stage. These employment offices provide services to job seekers and employers in both private and public sectors. During the review period, the ministry’s policy documents, The National Employment Policies for Job Creation and Protection of Workers, was approved by Cabinet and was subsequently widely disseminated. As a consequence, work has been initiated on drafting an Employment Services Bill, which will provide a legal framework for employment promotion and creation efforts. Wide consultations are of course envisaged.
Furthermore, a White Paper on Labour-based Works was produced in collaboration with the Ministry of Works, Transport and Communication and approved by Cabinet; and the Social Security Development Fund has been activated as part of the consolidation of employment promotion and creation efforts.
The ministry has managed to establish a strong database for labour market information. Labour statistics based on administrative records covering the years 1995-1997 are now available and include information about dismissals by economic sectors, distribution of employed persons in inspected establishments by economic sector, employees retrenched and reasons for retrenchments, type of inspections carried out, agricultural workers in communal and commercial agriculture, labour cases handled and their outcome, industrial action and days lost, and industrial accidents and nature of injury.
The Office of the Commissioner transformed labour relations in the country from confrontational approach to negotiated settlements of labour disputes. Collective bargaining system and social dialogue have been introduced and strengthened in accordance with the Labour Act.
In enhancing democracy and peace at the workplace, the office registered thirty-three trade unions and eight employers' organisations. Many recognition, procedural and collective agreements were registered. The Office of the Commissioner also organised and conducted a ballot in 1996 for civil servants to elect, for the first time, a trade union of their own choice to be the exclusive bargaining agent in furtherance of industrial democracy.
Other successes achieved in the area of labour relations include:
1. Fifteen new regional labour offices were established as compared to the time before independence when there was only one office in Windhoek with staff compliment of only ten officers. Presently, twenty-seven factory and labour inspectors are employed to carry out labour and factory inspections.
2. From 1990 to1999 more than 30 672 complaints were received countrywide and resolved accordingly. Labour inspectors visited the premises of 4807 businesses for routine inspections during the period under review.
3. Part V of the Labour Act which deals with condition of employment has been translated into six vernacular languages with the aim of assisting the social partners to better understand the Act.
4. Regional labour consultative bodies have been established on a voluntary basis as powerful informal tool of communication between the stakeholders in the region. Their function is to discuss and exchange views in order to improve labour relations in the regions.
5. A total of 2859 cases were reported to the district labour courts throughout Namibia.
6. A code for HIV/AIDS at the workplace which serves as a guideline for employers, was passed by the National Assembly in 1998. This code was based on the SADC code on HIV/AIDS at the workplace.
The Ministry of Labour and the Central Bureau of Statistics of the National Planning Commission conducted two labour force surveys in 1993 and 1997 respectively. The objective of the surveys was to measure the extent of available and unused labour, time and human resources for the purpose of macro-economic monitoring and human resources development planning, and to measure the relationship between employment and other socio-economic characteristics for the purpose of formulating schemes for vocational training and other similar programmes. Preliminary reports have been finalised and copies of these reports are available to the public.
The directorate carried out two establishment surveys throughout the country in 1994 and 1998 respectively. These surveys covered all operating establishments in the country. Objectives of these surveys include providing information on the employment situation in the country: the level of wages and salaries, hours of work, and so forth. Collection of data has been completed and data processing is currently underway for the 1998 survey.
The government does not have a policy document on child labour as yet. This is due to lack of information on the activities of children in the country. The need to establish the extent of child labour is therefore an important and timely issue.
International Relations
The ministry has secured co-operation with sub-regional, regional and international organisations and agencies. This was done through close co-operation and liaison with the Southern African Development Community, SADC, and the Organisation of African Unity.
In making the obligations referred to above visible, the ministry has facilitated the ratification of the following conventions:
1. Convention No. 87 of 1948 on freedom of association and protection of the right to organise,
2. Convention No. 98 of 1976 on tripartite consultation (International Labour Standards),
3. Convention No. 144 on tripartite consultation,
4. Convention No. 150 of 1978 on labour administration, and
5. Convention No. 158 of 1982 on termination of employment .
Ratification and application of international Labour Standards has since brought about improved labour and industrial relations in the country. Labour and industrial disputes have become the last resort in dispute management and resolution, which historically was not the case. Workers are much more aware of their rights and the working conditions have improved as a result of improved labour relations at work place. Trade unions and employers are talking more than fighting.
At the sub-regional regional level, the ministry has brought about effective participation of Namibia in the programmes and activities of the SADC Employment and Labour Sector and that of the OAU Labour and Social Affairs Commission. Namibia is party to the SADC Social Charter which aims at facilitating the accomplishment of the objectives of both the sector, and of the sub-region through close consultation of government, employers and workers.
Namibia hosted and chaired the twenty-second session of the OAU Labour and Social Affairs Commission and would hand over the chairmanship to Algeria by April.
Vision 2030
The 2030 vision of the Ministry of Labour has as its principle line the improving of the living standards of all Namibians to the level of that of an industrialised country. It is envisaged to achieve this vision through the concept of “decent work for all” as coined by ILO.
All those who work have rights at work. This ministry envisages the improvement of the “conditions of labour”, whether organized or not, whether work might occur in the formal or the informal economy, whether at home, in the community or in the voluntary sector.
Employment promotion is a central objective. The defence of rights at work necessarily involves the obligation to promote the possibilities of work itself -- to promote personal capabilities and to expand the opportunities for people to find productive work and earn decent livelihood. The ministry seeks to enlarge the world of work, not just to benchmark it. It is, therefore, as much concerned with unemployment and underemployment, as it is with the promotion of rights at work. An enabling environment for enterprise development lies at the heart of this vision.
The goal is not just the creation of jobs, but jobs of acceptable quality. Quality of employment cannot be divorced from quality of work. It could relate to different forms of work, to different conditions of work, and to a feeling of value and satisfaction. The need today is to devise social and economic systems that ensure basic security and employment while remaining capable of adapting to rapidly changing circumstances in a highly competitive global market.
The ministry is concerned with the human condition of work, and sees it as its responsibility to address the vulnerabilities and contingencies which take people out of work whether these arise from unemployment, loss of livelihood, sickness or old age.
The ministry is committed to promoting social dialogue. Social dialogue requires participation and freedom of association, and is therefore an end in itself in democratic societies. It is also a means of ensuring conflict resolution, social equity and effective policy implementation. It is the means by which rights are defended, employment promoted and work secured. It is a source of stability at all levels, from enterprise to society at large.
The government has heeded the cry of the workers and other interested parties who justifiably claim that there are loopholes in the Labour Act, the ministry has circulated a revised version of the Act to all the stakeholders for their comments and inputs. This process would be carried forward and will hopefully result in the relevant amendments to the Act.
Challenges for the New Millennium
Meeting both existing and new demands within the financial constraints present many challenges to the ministry. As all its work is essential, there would be enormous challenge to achieve optimum cost effectiveness in the methods for achieving the objectives.
The objectives of government policies to meet the challenges of the new millennium are twofold: to create increasing number of jobs to absorb new entrants to the labour market so as to reduce the current high levels of unemployment and underemployment; and to promote the protection of workers.
In this regard, public employment services would need to be so organised to ensure effective recruitment and placement to assist job seekers/workers to find suitable employment and assist employers to find suitable job seekers/workers. This would require effective mechanisms and appropriate measures for:
1. registering applicants for employment, taking note of their occupational qualifications, experiences and desires, interviewing them for employment, evaluating, if necessary, their physical and vocational capabilities, and assisting them where required to obtain vocational training;
2. obtaining from employers and prospective employers precise information on existing vacancies, and requirements to be met by job seekers/workers for filling these jobs;
3. referring available applicants with suitable skills and physical capacity, to the employer;
4. facilitating occupational mobility with a view to adjusting the supply of labour to employment opportunities in the various occupations;
5. facilitating geographical mobility with a view to assisting the movement of workers to areas with suitable employment opportunities;
6. facilitating temporary transfers of workers from one area to another as a means of meeting temporary local maladjustment in the supply/demand of workers;
7 facilitating any movement of workers from one country to another which may have been approved by the governments concerned; and
8. collecting and analysing, in co-operation with other authorities and with management and trade unions, the fullest available information on the situation of the employment market in the country as a whole and in the different industries, occupations and areas, and making such information available systematically and promptly to public authorities, employers and workers' organisations concerned, and to general public.
Rapid pace of change and innovation, globalisation, new epidemics, changing social relations, changes in production technology and conditions of employment are mounting a new challenge for labour inspectorates everywhere. Inspectors need to keep abreast of developments in more and more complex, divergent and increasingly specialised fields to establish and maintain their competence. An ongoing capacity building is therefore necessary.
Another crucial challenge for the ministry is to maximise what has already been achieved and to chart the future in an effort to set off the negative impacts of globalisation. The issue of resources (both financial and human) remains an unavoidable challenge. Employers, workers and technocrats need to work together to develop a country. For this to happen and make significant impact, well trained staff is a prerequisite, motivated workforce in indispensable and focused entrepreneurs are the pillars. Investment in the development of human resources remains therefore as a major challenge because job patterns, requirements, and therefore the labour market paradigm would continually change.
Challenges faced by the ministry conform to the fundamental challenges faced by and opportunities created by the International Labour Organisation. The ministry would need to ensure that Namibia responds positively to the call of the ILO regarding ratification of seven fundamental conventions.