Cosatu wants decent minimum wage

Published Nov 26, 2015

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Amy Musgrave

Group Labour Editor

Cosatu is planning on stepping up the pressure for a decent national minimum wage, warning that if a current deadlock on the matter is not resolved in a week’s time, it will take its fight to the streets.

Following the federation’s four-day congress this week, Cosatu stipulated in a special declaration that it wanted the wage to be set at between 40 and 50 percent of the average wage as is usually the benchmark across the globe. So a wage set at 40-50 percent of this estimated average will be in the range of R4 110 to R5 137.

But business is likely to be hostile. While it has not made public what it will be willing to settle on, it is understood that the constituency wants the wage to be set at the same level as the lowest sectoral determination, which is currently for domestic workers.

The lowest-paid domestic worker will earn R1 412.49 from December 1, and the highest R2 230.70.

The amount for the minimum wage is not the only stumbling block. Business is insisting that it get calculated by an “independent” group, instead of the National Economic, Development and Labour Council (Nedlac) where it is currently being negotiated.

But Cosatu is adamant that the negotiations must remain at Nedlac as it believes it is a political process, and has warned that if the deadlock over the matter does not end by next Friday, it will up the ante.

“Congress reiterates labour’s view that the level of the NMW must be negotiated and rejects the notion of outsourcing this to an ‘independent body of experts’, which is nothing but an attempt to water down the demand for a meaningful minimum wage… and putting workers fate into the hand of conservative,” technocrats.

It is understood that until recently, the Treasury was opposed to the wage, even though it was agreed to be the government, believing that it will result in job losses.

“The urgent finalisation of an agreement on the finalisation of the NMW is non-negotiable… We will now engage in mass mobilisation to ensure what has not been agreed to in the boardroom, will be resolved in the streets and workplaces,” the declaration reads. If there is nothing by next Friday, Cosatu will hold a Day of Action for a National Minimum Wage in January and apply for a strike notice.

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