About two weeks after announcing salary reductions of 25% for all its employees due to the persisting precarious financial situation, the Namibia Premier League (NPL) is further cutting to the bone the wages of its employees and this time a 50% reduction in basic remuneration.
In a letter dated 6 May 2020, which New Era Sport has also seen, the NPL wrote to inform its employees that effective from 1 May until further notice, they will not be required to come to work on a full-time basis but will rather work from home on an ad hoc basis.
And while working from home on that basis, the league's employees' basic salaries will be cut by 50% but all other benefits such as leave accruals and membership to the Social Security Commission (SSC) will remain intact as contractually agreed on.
In the letter, the NPL management explained that when employees perform various duties on ad hoc basis from home and when required so by the league's management, they will be remunerated in full for the work done and the hours clocked respectively.
"We refer to various discussions over the past months regarding the NPL's financial position and the need to initiate dramatic cost saving measures. Particular reference is made to the meeting with the entire staff of the NPL on 23 April 2020, which served to explore ways in reducing salary costs including to negotiate possible salary reductions. Regrettably, no agreement was achieved at that meeting. In the light of the above, management of the NPL has no choice, but to now invoke its rights as enshrined in the Labour Act's section 12(6). This letter serves to give you notice that with effect from 1 May 2020 until further notice, you are not required to make your services available to the NPL on a full-time basis... during this time you will only be paid 50% of your basic salary and all other earnings, leave accruals and membership to the Social Security Commission will remain in place as contractually agreed to," reads the NPL letter.
Enquired yesterday if the new 50% basic salary reduction now replaces the 25% wage reduction that was announced by the league last month, NPL chief executive officer Harald Fuelle welcomed this publication's questions with disdain
Without offering much substance in his response, Fuelle said in short: "Matters of this nature are confidential. Please respect that."
Announcing the 25% wage reduction last month, the NPL cited a persisting precarious financial situation and the urgent need to adjust operations of the league to ensure financial viability and protect the long term employment of staff as the two main reasons for their decision.
It was reported last week by Nampa that the NPL's daily survival and operations are sustained by the financial assistance of "Good Samaritans who believe the league stands for justice."