Air Namibia employees still awaiting severance packages
SIXTEEN months later, the more than 600 former employees of the defunct Air Namibia are still awaiting their severance pay after massive layoffs.
The president of the Namibia Cabin Crew Union (NCCU), Reginald Kock, spoke to the Informant about the difficulties surrounding the liquidation of the airline, as well as the problems related to the payment of severance payments.
Kock said the government had done its part by delivering promised ex-gratia payments to Air Namibia employees, however, he lamented that these payments were subject to tax. The president further stated that this was not in line with due process as payments to former employees should be exempt from tax.
He further shared that the severance benefits of the employees have not been paid due to the slow liquidation process.
“It’s frustrating they (the liquidators) are not aggressive in selling Air Namibia’s assets which will ensure the employees receive their severance packages. The liquidators have employed three or four former Air Namibia employees to help with the liquidation process It has been over a year the fact is that they are not getting rid of assets Holding on to large assets such as planes is costly as it involves maintenance costs as well as payment of parking fees at the Namibia Airports Company (NAC),” Kock said.
The NCCU president added that the delay in severance payments has taken its toll on some former staff members, some of whom he said have turned to alcohol due to stress. It is the responsibility of the liquidators to effect severance pay, however, the government as a shareholder should ensure that this process is expedited to ensure that employees receive their severance pay.
“We realized that if the situation is left as it is, our members will have serious problems with the rising cost of living, most of them have not found jobs due to their long years of service. to Air Namibia with specialist skills. We need an indication of what is going on,” Kock concluded.
Finance Minister Iipumbu Shiimi is due to address the issue on September 15 in parliament.