Unions slam latest wage bill

THERE has been mixed reaction to the minimum wage bill which came into effect in South Africa this week, with at least one economist warning that it could have dire consequences for small businesses.

By law, workers must be paid a minimum rate of R20 an hour or R3 500 a month, depending on the number of hours worked.

However, Nedbank chief economist Dennis Dykes said the legislation would affect small businesses which might have to shed jobs as they struggled to remain afloat.

He said it would not have an impact on big retailers, which were already paying more than the stipulated rates.

“I am not a big fan of the minimum wage. A blanket approach has been applied instead of looking at the company’s ability to pay wages.”

Unions complained about the implementation of the minimum wage bill, saying it had not gone far enough.

Numsa spokesperson Phakamile Hlubi-majola, said it was a “poverty” bill. She said it was an insult to the working class who fought and died for a better living wage.

Food & Allied Workers Union general-secretary Katishi Masemola also rejected the low wage rate.

However, Cosatu national spokesperson Sizwe Pamla, commended the minimum wage bill and labelled opposers as populist.

“We did not thumbsuck the figure; an academic study was conducted. There is no scientific evidence that the bill will lead to job losses,” Pamla said.

The Sunday Tribune canvassed the opinion of workers at a busy shopping centre. They had no idea that a minimum wage had come into effect and said none of their employers had spoken about the issue.

A worker from a reputable appliance store said he earned slightly more than R20 an hour but spent a lot on transport costs. He said he only worked 32 hours a week, so his wage of R2 944 a month was below R3 500 a month, despite earning R23 an hour.

At a pie shop, two workers said they earned between R13 and R15 per hour and were not aware of the implementation of the bill, but welcomed it.

“Our boss has never told us anything regarding the bill but we hope that he will be fair and pay accordingly,” one of the women said.

Meanwhile, the Shoprite Group said it had prepared proactively for the introduction of the bill.

“We do not envisage a dramatic impact on our remuneration and staffing model or any job losses directly attributed to the introduction of the national minimum wage.

“It is our view, therefore, that the concept of introducing a national minimum wage is not something new to retailers and the impact thereof should not be that dramatic.”