DURBAN - LABOUR inspectors found some companies not paying the minimum wage, employees working excessive hours and businesses not registered with the Unemployment Insurance Fund (UIF) during inspections in KwaZulu-Natal this week.
The KZN Department of Employment and Labour announced earlier this week that they would conduct inspections at businesses in the wholesale, retail and freight and logistics sectors.
Yesterday, inspections were carried out in Phoenix.
Mncedisi Khambula, provincial chief inspector of Employment and Labour, said there were 94 teams of inspectors focusing on the wholesale and retail sector and the road freight and logistics sectors. “In some of the establishments yesterday there were issues of underpayment of the national minimum wage where the employers were not paying the gazetted rate which is supposed to be R21.69 (an hour) which is in effect until the end of the month. We had a problem where certain employers were not paying that minimum rate, some were paying as low as R12 an hour, which is a problem,” he said.
Minister of Employment and Labour Thulas Nxesi announced on Tuesday that the national minimum wage would increase from R21.69 to R23.19 from March 1, 2022.
Khambula said that there were also issues regarding compliance with the number of hours worked by employees.
“We found that the employees in establishments were working from 6am to 6pm which amounts to 12 hours over a period of six days a week, which is far more than the 45-hour per week allowed,” he said.
Khambula said that at establishments where non-compliance was picked up, the inspectors would issue enforcement notices. “The employers will then have 14 days to comply regarding the national minimum wage issue. When we talk about occupational and safety issues we give the employers 60 days to sort out the matter. Upon the expiry of that particular period, the inspector will make a follow up, if there is still non-compliance the inspector will refer the matter for prosecution.
“In certain instances where there are dangerous situations then the inspectors issue a prohibition notice. In one establishment yesterday there were prohibition notices that were issued and the employer was prevented from continuing with certain operations until certain safety precautions are taken,” he said.
Professor Irrshad Kaseeram, deputy dean of research at the University of Zululand, said Nxesi’s announcement on the increase in the national minimum wage was understandable.
“We have seen an increase in the interest rate as announced by the Reserve Bank. We have also seen a rise in the fuel price this month with only a slight relief in January. The increase in the fuel price causes a hike in food prices and transport. This in turn impacts the poor and the working class,” he said.
Kaseeram said that an increase in the national minimum wage would bring some relief to the poor. He added that there was an element of risk with the increase of the minimum wage.
“Companies have been struggling themselves since the Covid-19, and an increase in the minimum wage could make them less confident in employing unskilled workers. For there to be a balance we need the South African economy to grow to at least 3%,” he said.
The Department of Employment and Labour said that the inspections in KZN would continue until tomorrow.
THE MERCURY
