CCMA starts with shortfall to implement minimum wage deal

THE Commission for Conciliation, Mediation and Arbitration (CCMA) has received less than half of the R51 million it had requested to prepare for the implementation of the national minimum wage in this current financial year.

This after it obtained R19 million but R107m has been allocated for the next three financial years.

This is according to Labour Minister Mildred Oliphant in a written response to a parliamentary question from the DA’s Michael Bagraim.

Bagraim had queried the R33.5m shortfall in funding for the current financial year as requested by the CCMA, warning it would delay the implementation of the national minimum wage until the 2019/20 financial year. President Cyril Ramaphosa signed the national minimum wage bill into law last week.

The national minimum wage is set to benefit more than 6 million workers who presently earn less than R3 500 a month.

Oliphant said it was true that in preparation for the implementation of the National Minimum Wage dispensation, the CCMA had requested an allocation of R51 million to be used during the remainder of the current financial year.

“However due to the general lack of funds in the nation’s coffers only R18 million rand was allocated, with an additional sum of R1.3 million later availed by the Department of Labour,” she said.

Oliphant also said after representations were made to the National Treasury by the department on behalf of the CCMA, R107m was secured for the three-year budget cycle starting in 2019. Oliphant also said owing to the national minimum wage bill not being signed into law by Ramaphosa, not all of the activities originally anticipated have been embarked upon.

“This means that with the remaining period not much harm, if any, will be caused in the current financial year,” Oliphant said.

The newly promulgated law has yet to come into force on a date to be determined by Ramaphosa by proclamation.

The new law provides for a national minimum wage at R20 an hour. This is equivalent to R3 500 a month, depending on the number of hours worked. It also creates a phase-in period for farm workers, forestry workers, domestic workers, welfare sector and care workers. The new law also provides for a 13-member commission on the national minimum wage.

The commission will review and make recommendations to the minister on any adjustment of the minimum wage.

It is anticipated that the commission reports to the minister on its review and recommendations for the next year by October of each year.

Upon receiving the report from the commission the minister will be expected to report on the recommendations to the Cabinet to secure approval.