’Government dragging implementation of minimum wage’

Published Oct 20, 2016

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Johannesburg - Cosatu has once again accused the government and big business of dragging their feet on introducing a national minimum wage for the country.

The minimum wage is meant to be adopted by the end of the year, but according to the federation there is no sense of urgency from the state and business.

Cosatu spokesman Sizwe Pamala said on Thursday that the federation would raise its concerns at a Committee of Principals (COP) meeting of the National Economic, Development and Labour Council on Saturday.

“We are now well over a year beyond the July 2015 deadline that was set by the 2014 Ekurhuleni Summit for the finalisation of this matter,” he said in statement.

The committee agreed in June on two points regarding the minimum wage – that it be implemented by the end of the year, and that Deputy President Cyril Ramaphosa appoint an advisory panel of experts which would report to the committee in 70 days. In the interim negotiations have been suspended.

“The COP is now meeting on 22nd October to receive the report. However, indications are that the panel has not completed its report, and that only a progress report will be submitted to the COP this coming Saturday,” said Pamla.

“Interactions with the advisory panel have been positive, and we get the clear impression that the panel has taken its mandate seriously. However, we are very concerned about the prospect of further delays, and are determined to defend and take forward the COP mandate that the NMW is implemented from December 2016.”

While business was at first opposed to a national minimum wage claiming it would result in job losses as it was unaffordable, it has since come on board. Arguments are now around what the amount should be and what sectors should be exempted.

Ramaphosa has been at pains to ensure the public that everyone is on the same page.

Pamla said a recent outcry over Shoprite CEO Whitey Basson getting a R100-million a year while his employees were paid R3 000 per month, was further proof that the country needed a minimum wage.

“A meaningful national minimum wage must be an important element of a new wage policy which begins to recognise the dignity of every worker in our society, and overcomes the legacy of apartheid wage structures,” Cosatu said.

“It is in this context that we will be calling on the COP… to expedite the finalisation of these negotiations, and will intensify mobilisation of society to demand this. Reasonable expectations of society are now that this matter must urgently be brought to finality.”

Labour Bureau

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