Minimum wage assistance on cards

Mitigating measures are planned to assist businesses that cannot afford the R20-per-hour national minimum wage when it comes into force no later than May 1 2018, says Deputy President Cyril Ramaphosa. Such businesses could apply for an exemption for up to 12 months. The aim would be to avoid job losses and plant closures, Ramaphosa said at a media briefing on Wednesday.

Mitigating measures are planned to assist businesses that cannot afford the R20-per-hour national minimum wage when it comes into force no later than May 1 2018, says Deputy President Cyril Ramaphosa.

Such businesses could apply for an exemption for up to 12 months. The aim would be to avoid job losses and plant closures, Ramaphosa said at a media briefing on Wednesday.

“Any fragile sectors that are having difficulty in complying with the national minimum wage will be considered for assistance within the available means, including through incentives,” he said.

An employment tax incentive, expanded support for small and medium enterprises, as well as sectoral-specific tax incentives were envisaged, the deputy president said.

During the two-year lead-in time after May 1 2018, domestic and farm workers can be paid up to 75% and 90%, respectively of the national minimum wage.

Ramaphosa’s briefing was held to mark the signing of agreements on labour stability and the national minimum wage by all parties at the National Economic Development and Labour Council (Nedlac) — except Cosatu, which is to refer the matter back to its central executive committee.

Ramaphosa said the agreements signed on Tuesday would improve the lives of the 6.6million workers who earn less than R3,500, the monthly national minimum wage for 40hour weeks. A total of 4.8-million workers are covered by sectoral determinations — including the taxi industry (R10.78 per hour), domestic workers (R11.31), private security industry (R12.88), hospitality (R14.15) and farming and forestry (R14.25) — many of which set wages below the national wage.

A national minimum wage commission will be established to recommend annual adjustments to the national minimum wage and it will evaluate its effect on employment, poverty and inequality. The commission will be made up of three representatives each from business, labour and communities, as well as four independent experts.

The Nedlac partners, except Cosatu, had signed an accord on collective bargaining and industrial action to improve labour stability, Ramaphosa said.

The unions had also agreed to comply with their constitutions’ provisions for secret ballots before calling out a strike. If unions lacked these provisions, they would introduce them.

Labour Minister Mildred Oliphant said a provision for secret ballots would be incorporated into an amendment to the Labour Relations Act.

Issues to be worked out with Nedlac in the next few weeks included the minimum number of working hours and whether workers in the government’s expanded public works programme will also come under the national minimum wage.