Small business hits pause

Sadly, the labour situation has gone from bad to worse in the past 100 days (Ramaphosa’s performance under spotlight in budget vote, May 21). It has been widely reported how the distrust between management and labour has increased, and our employment figures are still dropping.

Over and above this, negativity within the small-business community is getting worse because of the land issue and the national minimum wage. Most businesses support a minimum wage on the basis that it should be decided by the sector specific to their industry. My discussions with small-business owners have shown me that the haste with which President Cyril Ramaphosa is trying to push forward with amendments to the labour law has put a stop to job creation across the board.

Small businesses want certainty and feel extremely vulnerable in this climate. The expanded definition of worker will include independent contractors, which are often used by small businesses, many of which are now saying they would rather invest elsewhere as they wait and see what will transpire for a few years after the implementation of the national minimum wage.

The engine room for future job creation in SA is small business, and the labour law amendments have managed to stall that engine of job creation.

Michael Bagraim, MP DA shadow labour minister