Workers ‘struggling to make ends meet’

Workers in SA are struggling to survive on today’s wages, which have dwindled in value over the years, according to the findings of a study of worker income and spending patterns in the country.

Workers in SA are struggling to survive on today’s wages, which have dwindled in value over the years, according to the findings of a study of worker income and spending patterns.

The study showed a lack of growth in monthly earnings among workers, with the lowest end suffering the most.

Labour analyst Andrew Levy said this was reflected in wage demands by workers as the standard of living had become more “squeezed”.

“There is little or no income left when workers are paid out,” he said at the launch of the report on Tuesday.

Workers at all levels were spending 29% of their wages on housing or rent, 21% on transport, 13% on savings and insurance and 13% on loans, the report said.

Other factors influencing the variables in the labour market in SA included the continued widening of the wage gap along race and gender lines.

The report released by the South African Labour Market Monitor said that workers were left with little or no money after spending on critical expenses, such as housing, transport, education and insurance

Employers have been called on to improve the wages of lowskilled workers.

The data painted a grim picture and concern was also raised about productivity levels that had fallen rapidly over the years while employers paid “more and more wages”.

More than 6-million of the country’s workers were categorised as “the working poor” paid less than R3,500.

The study found the national minimum wage would improve the income of millions of workers, but that more intervention was required to close the wage inequality gap.

The National Assembly was set to consider the national minimum wage bill on Tuesday, bringing the implementation date of the legislation closer.

Three hundred workers based in Gauteng in categories 4, 5 and 6 of employment-equity income levels were surveyed in the study. The lowest-paid manual workers, including bricklayers and cleaners, were earning an average net income of R6,630, while drivers, artisans, technical clerks and others at level 5 earned R9,073.

Skilled technical and academically qualified workers were being paid R21,587.

Expenditure patterns showed that two-thirds of the surveyed workers had store accounts, while 27% had hirepurchase agreements and 18% had bank loans.

“A relatively high proportion, at 17% of the sample, remits money to family members living in a different part of the country, or in foreign countries.”