WAGE IN­CREASES for SA Hospitality In­dus­try

Tourism Tattler - - BUSINESS & FINANCE -

Min­i­mum wage in­creases will come into ef­fect for the South African hospitality in­dus­try on the 01st July and will be ap­pli­ca­ble un­til the 30th June 2017.

This was dis­closed at the World Travel Market, part of Africa Travel Week, which took place at the CTICC be­tween the 6th and 8th April, dur­ing which the FEDHASA Cape region hosted an in­dus­try event where Labour Con­sul­tant Leon Traut, updated in­dus­try members on cur­rent labour is­sues.

Wage in­creases are al­ways de­ter­mined by the Con­sumer Price In­dex (CPI) re­ported by stats SA. The lat­est head­line CPI re­leased by Stats SA is 7%. Ac­cord­ing to glob­al­rates.com, when we talk about the rate of in­fla­tion in South Africa, this of­ten refers to the rate of in­fla­tion based on the con­sumer price in­dex. The South African CPI shows the change in prices of a stan­dard pack­age of goods and ser­vices which South African house­holds pur­chase for con­sump­tion. In or­der to mea­sure in­fla­tion, an as­sess­ment is made of how much the CPI has risen in per­cent­age terms over a given pe­riod, com­pared to the CPI in a pre­ced­ing pe­riod.

The cur­rent an­nual min­i­mum wage rate in­crease for the in­dus­try is al­ways based on CPI plus a per­cent­age which has var­ied over the last few years from +1% up to +2%. For a 45 hour week, the cur­rent min­i­mum wage per month is R3076.98.

At a Depart­ment of Labour (DoL) hear­ing ear­lier this year, unions' present asked for a CPI +2% an­nual in­crease, FEDHASA's po­si­tion was an in­crease in line with CPI. In ad­di­tion to the unions' pro­posed an­nual in­crease, ad­di­tional items such as pre­scribed night trans­port com­pen­sa­tion, fully com­pen­sated ma­ter­nity leave as well as added an­nual paid days off for fam­ily re­spon­si­bil­ity leave were raised.

As the watch­dog for the hospitality in­dus­try, FEDHASA acts as the voice for the sec­tor on rel­e­vant in­dus­try leg­is­la­tion in an ef­fort to try and main­tain a sus­tain­able trad­ing en­vi­ron­ment. At the DoL hear­ing, FEDHASA op­posed the pro­pos­als put for­ward by the unions' and in­stead, lob­bied for a ge­o­graph­i­cal dif­fer­en­tial in min­i­mum wages, stream­lin­ing the cur­rent av­er­ag­ing of hours work clause as well as the over­time clause in ef­fort to forge a way for­ward for both em­ployer and em­ployee. The re­sults of the hear­ing are ex­pected to be pub­lished in May.

The event ended off with an ad­dress from FEDHASA Cape Chair­man, Rob Kucera, who ad­dressed the is­sue of sea­son­al­ity. Aware of the neg­a­tive im­pact that sea­son­al­ity has on the tourism in­dus­try and on economic growth in the city of Cape Town and the West­ern Cape, Kucera en­cour­aged both members and in­dus­try play­ers alike, to col­lab­o­rate and work to­gether in gen­er­at­ing new busi­ness and events for the prov­ince and region dur­ing the win­ter sea­son.

“Our sum­mer months fill up for them­selves but, greater ef­fort needs to be made to en­cour­age new busi­ness such as events, con­fer­ences and in­cen­tive pro­grammes to be moved into our win­ter months,” says Kucera. He ended by say­ing that FEDHASA Cape is root­ing for the in­dus­try to ac­quire new busi­ness in or­der for every­one in the value chain to ben­e­fit.

About FEDHASA Cape: The Fed­er­ated Hospitality As­so­ci­a­tion of South Africa (FEDHASA) Cape chap­ter is recog­nised and re­spected by gov­ern­ment and all in­dus­try role play­ers since 1949 as the prime rep­re­sen­ta­tive and voice for the South African Hospitality In­dus­try. The as­so­ci­a­tion aims to en­sure a sus­tain­able and prof­itable busi­ness en­vi­ron­ment for the Hospitality In­dus­try in the West­ern Cape and North­ern Cape prov­inces as a pri­vate busi­ness sec­tor voice. For more info visit www.fedhasa.co.za

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.