Parties strike agreement on new minimum wage

AN agreement on the national minimum wage has been struck between parties at the National Economic Development and Labour Council (Nedlac).

The parties are said to have agreed, in a draft document, on R20 per hour to take effect from May 2018. They also agreed on the establishment of a National Minimum Wage Commission (NMWC) to review the minimum wage every year.

Among the first assessments of the effect of the introduction of the minimum wage will be whether it had affected employment. Unemployment levels reached 27% in the last quarter of 2016.

“The social partners commit to make every effort to avoid job losses that may arise in the short-term from the introduction of the new minimum wage, and further commit to grow employment in the medium- to long-term through inclusive growth,” the document says.

A signing ceremony was expected to be held in Cape Town yesterday and President Jacob Zuma was set to announce the minimum wage during his State of the Nation address tomorrow.

The agreement is also accompanied by a “code of good practice for collective bargaining, industrial action and picketing”, as well as an “accord on collective bargaining and industrial action”, which, it is hoped, will mitigate lengthy and violent strikes.

No employer may alter the conditions of employment and hours of work due to the new minimum wage as this may constitute unfair labour practice. — BDLive