Employment bill will retain sectoral wage determinations
The parliamentary portfolio committee on labour has decided in favour of amending the Basic Conditions of Employment Amendment Bill to retain sectoral wage determinations.
This bill was intended to repeal the provision for sectoral determinations in the light of the national minimum wage coming into force but business, trade unions and academics opposed this. The committee has now completed its deliberations on the submissions made during public hearings on the National Minimum Wage Bill, the Basic Conditions of Employment Amendment Bill and the Labour Relations Amendment Bill, which will be redrafted in accordance with the committee’s decisions.
Few changes were made to the proposals in the Labour Relations Amendment Bill, which introduces the requirement for a secret ballot and regulates rules on protests.
The committee has redrafted the definition of those who will qualify for the national minimum wage to include independent contract workers, in accordance with the definition adopted by the National Economic Development and Labour Council but overlooked by the Department of Labour when it drafted the bill. This will take account of the trend towards part-time employment, outsourcing and casualisation.
Cosatu parliamentary coordinator Matthew Parks said most of the recommendations made by the labour federation had been accepted by the committee and it was happy with the outcome.
The retention of sectoral wage determinations; the fasttracking of the minimum wage for farm workers and domestic workers to 100% of the national minimum wage within two years unless there were compelling reasons against this, (it was left open ended in the bill); and an escalation of fines against repeat offenders who failed to pay the minimum wage all have Cosatu approval.
Cosatu was also happy about the enhanced powers given to the minister of labour to extend collective agreements where the parties to the agreement were sufficiently representative of the sector.
Parks said Cosatu was satisfied that the committee had followed the public participation process on the bills “to the letter” rather than rushing them.
In terms of the committee’s decision, the National Minimum Wage Commission will make recommendations to the minister of labour on sectoral wage determinations. Previously, this was the function of the Employment Conditions Commission, which will be disbanded.
The National Minimum Wage Commission will be responsible for annual reviews of the national minimum wage.
DA labour spokesman Michael Bagraim also welcomed the retention of sectoral wage determinations.
In addition to wages, sectoral determinations deal with conditions of employment such as hours, leave and pension.