Why the EFF is unhappy about the minimum wage

Trade unions will this week mull the national minimum wage proposed for SA.

Labour federation Cosatu on Sunday tweeted that the National Union of Mineworkers (NUM) "has noted the announcement made by the Deputy President Cyril Ramaphosa that the proposed national minimum wage should be R3‚500/month".

It said the NUM would "pronounce its decision" on the proposal during its "upcoming extended national executive committee meeting"‚ which runs from Wednesday until Saturday.

It is also likely to be discussed when Cosatu’s central executive committee meets at its Braamfontein headquarters on Monday.

It could put the union federation at odds with its alliance partner‚ the ruling party.

Cosatu tweeted that: "The African National Congress (ANC) notes and welcomes the release of the Nedlac advisory panel on the National #MinimumWage."

The ANC’s Zizi Kodwa said on Sunday that the proposal "provides a clear way forward for the conclusion of a social compact between social partners under the guidance" of the National Economic Development and Labour Council (Nedlac)‚ and said "constituencies are urged to proceed with urgency so that finality and certainty can be achieved".

However‚ the EFF on Sunday rejected the proposal, saying it was lower than one it made two years ago.

The proposed national minimum wage of R3,500/month was presented to Nedlac by a panel of advisers appointed to advise it on the level at which the country’s national minimum wage should be set.

Addressing the media after the panel’s report was presented to Nedlac‚ Ramaphosa said labour‚ government and business would need to take this proposal to their constituencies to decide whether it was acceptable to them.

"We are now a step closer to finalising discussions on the national minimum wage. All social partners will now decide what their take is."

He said the parties would discuss the proposal and come back to Nedlac. If there was agreement‚ this would be made into legislation.

EFF rejection

The EFF said on Sunday that Ramaphosa’s proposal "favours business at the expense of workers".

The party’s Mbuyiseni Quintin Ndlozi also took a personal swipe at Ramaphosa for being at the "forefront of this process; and we know he loves money and business [more] than he does the people".

"The proposal will not lead to the desired resolution of the problem of inequality‚ instead it is going to institutionalise these inequalities at low poverty wages‚" he said.

Ndlozi said the EFF‚ "following proposals by worker organisations like the Congress of South African Trade Unions‚ had tabled a minimum wage of R4,500 to Parliament based on figures from 2014‚ which is two years ago".

"Since then‚ inflation has increased by more than 6%. This means the initial R4,500 proposal by workers/labour should now be set at about R5,000."

He also said the EFF rejected "the idea that there must be exceptions for farm workers and domestic workers".

"We reiterate that no one — from petrol attendants‚ security guards‚ farms and domestic workers‚ to cashiers in all big retail stores — no one must earn less than R4,500/month.

"The EFF will not support Ramaphosa’s proposal and will mobilise all workers to reject it in favour of a much more meaningful national minimum wage of no less than R4,500."

Ramaphosa said the proposed national minimum wage was aimed at reducing income poverty and inequality.

TMG Digital