Minimum wage deadline is April

The move could cost you as much as R5 000 for basic labour

ATASK team investigating a national minimum wage aims to have this measure implemented by April.

There is concern that the deadline of mid-December will not be met as business and labour are worlds apart on what the amount should be.

It is also understood that until recently the Treasury was opposed to a national minimum wage, despite backing by the ANC, as it believed this would lead to job losses.

Nedlac (National Economic, Development and Labour Council) members want the wage to be around R5 000, while, according to a document to be discussed at Cosatu’s coming congress, new evidence from the group shows a “more realistic” national poverty line of R4 014.

The document says business has indicated it wants the wage to be set close to the lowest wage sectoral determination, which is for domestic workers. From December, the highest amount earned by them according to where they work and their hours, will be R2 230.70.

A meeting of Nedlac’s committee of principals, led by Deputy President Cyril Ramaphosa, deadlocked last Saturday

Sources, who did not want to be named, told the Sunday Tribune areas of disagreement included whether Nedlac should be the forum that decides on what the minimum wage should be set at, and the time frame for completing work on the policy.

To break the deadlock, stakeholders agreed last week that Ramaphosa should hold bilaterals with Nedlac’s four constituents.

This took place on Monday and Friday this week.

A source close to the negotiations said: “The area of dis- agreement is who should set the national minimum wage – our committee at Nedlac or an external committee.

“Some believe it should be the existing Employment Conditions Commission (in the Labour Department).”

This was confirmed by the Federation of Unions of SA general secretary Dennis George.

“The big issue is we must report to the president so he can report at the State of the Nation address next year.

“Business wants to go lower than what is paid to domestics, which is just over R1 900 for those employed in metropolitan areas.”

Another challenge to the speedy implementation of a national minimum wage is apparently slowness by the Labour Department, which until now tried to be “independent” of Nedlac processes, a source said.

“Our frustration with the government is they want to participate in the process like an independent actor. But we have pushed them to also make their position known.

“But they have not taken any action, or determination on how much they want to propose it to be. Through parliamentary hearings on the issue, and various platforms of the Department of Labour, it could be set between R3 500 and R5 000.

“Those are not government figures, but figures coming trough government-facilitated platforms, such as public hearings,” the source said.

Unions, researchers and academics believe the minimum wage will not lead to job losses but will boost consumption-led economic growth, and will boost the southern Africa region through higher remittances sent home by immigrants.

Nedlac declined to comment citing confidentiality.