The Namibia Financial Institutions Union (NAFINU) has raised concerns over the reintegration of the National Student Financial Assistance Fund (NSFAF) into the Ministry of Education.
NAFINU says the process has had negative effects on employees.
NAFINU's General Secretary Samuel Vries noted that NSFAF was established through an Act of Parliament and operated as a corporate entity with its own governance structures.
The reintegration, he says, was a decision that failed to fully consider the impact on employees.
One of the major concerns raised by the union is the reduction of salaries for some employees following the integration.
Vries explained that certain workers have seen their earnings reduced by 50% due to alignment with the public service salary structure.
He said this has further implications for pension contributions, as employees will now be required to contribute to pension funds based on their reduced salaries.
"You take all employees with the responsibility, the roles and so on. But they are just saying it's also subject to the Public Service Act and decisions that have been made by the Public Service Commission. That's the reason. But in such a case, when you reduce the salary of an employee, you can do it, and companies are doing that through restructuring. You pay out severance pay in terms of Section 34; you follow that provision, and then you can maybe just start with new salaries."
NAFINU also argues that the consultation process between management and the union was not conducted in good faith.
The situation has also raised concerns about job security, as employees were reportedly given two options: accept reduced salaries within the ministry or leave with severance pay.
Vries said the current labour market conditions make it difficult for workers to find alternative employment, forcing some employees to accept the new terms.
"Now, some of the employees said, 'OK, there are two options. 'I pay you severance pay. Either, if you want job security, you move with us into the ministry. And if you move with us, we'll cut your salary. Now, getting another job is very difficult in this country. So, people have basically been forced to accept positions and decisions that have been made that break the stamp."
Meanwhile, the union has taken the matter to the Office of the Labour Commissioner.
Vries confirmed that NAFINU lodged a dispute in February, and the case is expected to be heard in April.
During her address to NSFAF staff, Education Minister Sanet Steenkamp emphasised that the aim of the integration is to strengthen governance and enhance long-term sustainability.
She further acknowledged the concerns raised, assuring staff that they are understood and taken seriously.