National Minimum Wage Bill to be fine-tuned

The national minimum wage will improve the lives of millions of low paid workers

The introduction of a National Minimum Wage Bill has been a key focus for President Cyril Ramaphosa, even before his inauguration.

Government has a constitutional obligation to respect, protect, promote and fulfil the rights of the Bill of Rights, which includes the right to fair labour practices.

While he was still Deputy President, Ramaphosa established minimum wage agreements in February 2017 after extensive consultations with labour federations, business and the community sector, under the umbrella of the National Economic Development and Labour Council (NEDLAC).

“The national minimum wage, which is a floor below which no worker may be paid, will significantly improve the lives of millions of low paid workers and begin to address the challenge of wage inequality. South Africa will join several countries around the world that have implemented a national minimum wage as an instrument of economic and social development,”

Ramaphosa pointed out after the signing of the agreements.

Cabinet approved the National Minimum Wage Bill in November 2017.The Bill proposes that most workers receive a minimum payment of R20 per hour from their employers. The minimum hourly wage for domestic and farm workers would be R15 and

R18 respectively, but the aim is for these wages to be brought up to 100 percent of the national minimum wage within two years of the Bill coming into effect.

Where do we stand at present?

More than 40 public submissions were made during public hearings regarding the National Minimum Wage Bill, which has pushed back the original implementation date of 1 May.

“We know that these bills, like any matter that has to do with labour relations in SA, deal with highly contested policy propositions. We are aware of a number of important issues that are being raised which parliament will have to consider as part of concluding the bill,” said Department of Labour Minister Mildred Oliphant in a media briefing in March, adding that the department would be ready to take instruction from the Parliament.

In April, Acting Chairperson of Parliament’s Portfolio Committee on Labour Sharome van Schalkwyk said that the Bill would be sent for redrafting after consideration of the public inputs.

“The Department of Labour must take its time and rework the Bill for submission again to the committee. This piece of legislation is critical in our country, not only in fighting inequality, but also addressing abuse of the vulnerable workers in some sectors,” she explained.

The committee had deliberated on the Bill clause by clause and made changes according to several concerns brought to its attention.

“This is a piece of legislation that will change the course of vulnerable workers in our country for a long time, and it ought to be close to perfection when it is tabled before the National Assembly,” said van Schalkywk.