Massive job losses as security companies implement minimum wage

16 January, 2025

By: Eric Mhunduru

Some security companies have started implementing the gazetted minimum wage amid looming retrenchments to avoid incurring losses.

One security company told NewsOnOne that they expect almost 400 personnel to lose their jobs if clients do not renew or review tenders upwards.

The companies also bemoan the existence of fly-by-night security companies offering cheaper services below the gazetted minimum wages.

Namibia Protection Service’s chief executive officer Fanie Horn said they are still negotiating with clients to review the tender agreements to avoid retrenchments.

“Initially, when we received the new wage order in August 2024, we started to engage with our clients and it became evident and very clear that the increase to N$18 was too big. Clients were very, very sceptical and made it very clear that they could not afford it.

That immediately resulted in job losses which we already started to process late 2024 because clients just said it is not affordable to them, and we were very concerned about it. At that stage we estimate job losses around 400 in Namibia Protection Services”.

“We went back to the clients late December and as I sit here, we are still busy after the festive season and try to renegotiate and minimise job losses.

This is an ongoing process for the last three, four weeks and try to convince the clients to retain or remain with NPS and see if we can keep the people in our employment,” he said.

Rubicon Security Services co-owner Christo Groenewald called on the labour ministry to look closely into the fly-by-night security companies.

“We will have to find alternatives for those security officers who have no jobs anymore. Now the one thing is to see if we can absorb them somehow. It is very difficult, you know, it is already a high increase in salary costs and people which we cannot place where we can earn money from is difficult”.

Groenewald said many people are starting businesses to earn an income, and many turn to security services. However, he said these people lack experience in the security field, yet they register a business and suddenly, they are a security service provider.

“But the problem is that these guys, they do not pay any minimum wages. We have seen it with the previous minimum wage, they undercut the prices. You know, they will quote a client an amount of money which is less than what they are supposed to pay their security officers. So how will they then be able to pay a minimum wage,” said Groenewald.

The minimum wages gazetted last year have become effective since the beginning of this year.

The labour ministry proposed a wage increment of N$13.50 Namibia dollar per hour for 2025 and N$16 Namibia dollar for 2026 and N$18 Namibia dollar for 2027.

Written by: Hertha

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