‘Minimum wage impractical’ - expert

A protestor during Cosatu march outside parliament. Photo: Nic Bothma

A protestor during Cosatu march outside parliament. Photo: Nic Bothma

Published Oct 8, 2015

Share

Cape Town - For Cape workers who braved the midday sun, Wednesday’s Cosatu march to Parliament was about justice over long-standing issues that have kept them in a perpetual cycle of poverty.

Cosatu’s demands included the introduction of a national minimum wage and no new VAT increase, which currently stands at 14 percent. The government is considering increasing VAT to 17 percent.

But UCT economics professor Anthony Black says a wide-scale national minimum wage is impractical.

“It has to take into consideration different things, and different regions. Different farming areas are wealthier than others, some can afford high wages,” said Black.

Even with the textile industry, he said, there couldn’t be a national minimum wage because there were differences in the cost of clothing made in a place like Newcastle in KwaZulu-Natal as opposed to Cape Town.

“I don’t think it’s a silver bullet, it’s not going to change our poverty problem, or unemployment problem. I would be favouring an extension of the wage subsidy at a low level and making it as widespread as possible,” said Black.

But his sentiments found little support from several of the workers who were listening to speeches from labour leaders in front of Parliament’s main entrance.

After 45 years of working in textile and clothing factories, Marie, who wouldn’t give her last name, said she still earned under R1 000 a week.

“We barely survive,” said Marie. “Bus fare, transport money, food (which we have to budget for).

“When you get paid on the Friday, you have to ask (one of your colleagues) for a loan on Monday.”

That money would then be paid back on Friday and the cycle continues on the following Monday, said Marie.

Because her wages have not kept pace with the inflation rate, Marie said she and her family had to cut down on their food consumption.

“We don’t eat any meat during the week – only on Sundays. Also a tin of pilchards goes a long way when you add it to pasta or noodles. Then you can make food for two nights,” said Marie.

Vivian Cloete, another marcher who also works in the textile industry, said the R3 500 she earns each month barely covers her and her dependants after deductions.

“I’ve got two kids and I’m a single mother. It’s very hard for us, we really, really struggle. When we have load shedding, it’s very hard for us because we only cook with the electric stove,” said Cloete.

She lives in a backyard and while she might qualify for a government housing subsidy, she said the additional cost of home ownership was not an appealing prospect.

[email protected]

@mtyala

Cape Times

Related Topics: