IUM slashes salaries by 40%
JEMIMA BEUKES
WINDHOEK
The International University of Management (IUM) is buckling under the enormous economic pressures of the coronavirus pandemic, and has announced that staff salaries will be slashed by 40%.
This was confirmed by founder, Professor David Namwandi, who pointed out that the university has taken over staff third-party payments such as pension, medical aid and social security to lessen the impact on employees.
“This reduction was something that was done painfully, but this is what the current situation dictates.
“We are undergoing a hectic situation, but we do not want to lay-off workers and instead have to tighten our belts.
“We do not want the university to be caught with its pants down and we still want to maintain prudent financial policies,” Namwandi said.
He added that the salary reduction measure will run the course of the state of emergency announced by President Hage Geingob, but stressed salaries will be readjusted as soon as the situation improves.
Working hours reduced
In an internal staff memo, acting vice-chancellor, Professor Oladele Arowolo, informed employees that their working hours will also be reduced.
“Under the circumstances, management has been forced to take a realistic look at the institution's current financial situation and the immediate prospects, and has reached the uneasy conclusion that it calls for a sacrifice by its workers,” Arowolo wrote to staff.
These developments follow hot on the heels of the labour ministry's newly gazetted regulations which include a ban on retrenchments for 28 days after the lockdown period, which ended at midnight on 4 May.
It is also directed that to reduce wages and salaries, trade unions and/or employees' consent must be presented in writing.
Government also prohibited the reduction of compensation if employees work a full day, whether in the office or at home, as well as the reduction of more than 50% of employees' pay.
As such, any reduction in benefits must, by law, be reflected by a reduction in working hours.
[email protected]
WINDHOEK
The International University of Management (IUM) is buckling under the enormous economic pressures of the coronavirus pandemic, and has announced that staff salaries will be slashed by 40%.
This was confirmed by founder, Professor David Namwandi, who pointed out that the university has taken over staff third-party payments such as pension, medical aid and social security to lessen the impact on employees.
“This reduction was something that was done painfully, but this is what the current situation dictates.
“We are undergoing a hectic situation, but we do not want to lay-off workers and instead have to tighten our belts.
“We do not want the university to be caught with its pants down and we still want to maintain prudent financial policies,” Namwandi said.
He added that the salary reduction measure will run the course of the state of emergency announced by President Hage Geingob, but stressed salaries will be readjusted as soon as the situation improves.
Working hours reduced
In an internal staff memo, acting vice-chancellor, Professor Oladele Arowolo, informed employees that their working hours will also be reduced.
“Under the circumstances, management has been forced to take a realistic look at the institution's current financial situation and the immediate prospects, and has reached the uneasy conclusion that it calls for a sacrifice by its workers,” Arowolo wrote to staff.
These developments follow hot on the heels of the labour ministry's newly gazetted regulations which include a ban on retrenchments for 28 days after the lockdown period, which ended at midnight on 4 May.
It is also directed that to reduce wages and salaries, trade unions and/or employees' consent must be presented in writing.
Government also prohibited the reduction of compensation if employees work a full day, whether in the office or at home, as well as the reduction of more than 50% of employees' pay.
As such, any reduction in benefits must, by law, be reflected by a reduction in working hours.
[email protected]
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