Roundup: Proposed minimum wage receives different reactions in S. Africa

Different reactions emerged on Monday to a proposed minimum wage which is aimed at reducing inequality and boosting economic growth.

On Sunday, the National Economic Development and Labour Council (NEDLAC) proposed a national minimum wage of 3,500 rand (about 245 US dollars) per month, which amounts to R20 (about 1.4 dollars) per hour.

The proposed wage is expected to help ease labour tension at a time when South Africa's credit rating faces the risk of being downgraded to junk status by international rating agencies later this year.

The ruling African National Congress (ANC) welcomed the proposed wage which it said would help reduce prolonged and violent strikes.

The proposed wage is part of interventions meant to stabilize the economy and help create jobs as envisaged in the 9-Point Plan, a blueprint for economic growth in the country, ANC national spokesperson Zizi Kodwa said.

A panel of experts, appointed by Deputy President Cyril Ramaphosa, has been working for more than two years to work out the minimum wage.

Ramaphosa encouraged all stakeholders to engage in discussions of the proposal.

The proposed minimum wage, however, will include exemptions of some sectors such as agriculture and domestic workers.

Currently around 47 percent of South Africans who do have work earn a wage below 3,500 rand a month.

The opposition Democratic Alliance (DA) on Monday voiced its support for sectoral minimum wages which are important to ensure that the rights of working South Africans be protected and guard against the abuse of the most vulnerable members of the society.

"The DA further believes that when setting sectoral minimum wages, the peculiarities and challenges of different sectors of our economy should be taken into account," said Ian Ollis, DA Shadow Minister of Labour.

He said the DA will propose the establishment of an independent panel, which cannot be unduly influenced by politicians, big business or big labour unions, to set minimum wages for each sector, taking into consideration all relevant factors, including the need to create jobs for the 8.9 million unemployed South Africans and ensure dignified pay for working South Africans.

Meanwhile, the Congress of South African Trade Unions (COSATU), the biggest national trade federation in the country, said it is not impressed with the proposed minimum wage.

The federation voiced concerns that the minimum wage alone is not enough to combat poverty and inequality.

"While R3,500 is a move from what government and business were proposing from NEDLAC, it still falls short of what the federation put on the table," COSATU spokesperson Sizwe Pumla said.

COSATU is unhappy with the fact that it's not the R4,500 that it wanted, Pumla said.

"For us as the federation we are taking this report back to workers and make sure that they engage on it and they give us a mandate because we are not after so long going to support anything that is not supported by the workers," he said.

Also on Monday, Parliament's Portfolio Committee on Labour welcomed the proposed minimum wage.

The Chairperson of the Committee, Lumka Yengeni, said that as an entry-level this amount will save the most vulnerable workers from further exploitation.

The Committee appreciates the opportunity for all stakeholders to discuss the proposal, said Yengeni.

"The opportunity is for further consultation on the proposed figure. During the nationwide public hearings on the national minimum wage, different figures were raised by the public," Yengeni said.

The investigation into the modalities of introducing a national minimum wage came as a result of the President Jacob Zuma's State-of-the-Nation address in February 2014.

The proposed figure allowed for further consultation since the Deputy President has submitted the report to all the social partners at the National Economic Development and Labour Council.

The social partners will then take this proposal to their constituencies for further discussions.

"Parliament will also need to discuss the proposed figure. The panel itself was widely consultative and took into consideration the country's economy," Yengeni said. Endit