The Department of Labour is insisting on phasing out sectoral determinations over three years despite strong opposition during public hearings on proposed amendments to the Basic Conditions of Employment Act.
It will now be up to Parliament’s portfolio committee on labour to decide whether to adopt the proposal.
The department’s director-general, Thobile Lamati, gave the department’s initial response to the submissions on the Basic Conditions of Employment Amendment Bill, the National Minimum Wage Bill and the Labour Relations Bill at a meeting of the committee last week.
Organisations, including trade union federations and Business Unity SA, argued for sectoral determinations, which they say protect vulnerable workers such as domestic and farm workers.
Opponents of the abolition of sectoral determinations said it would remove a tool to protect workers earning more than the national minimum wage.
The removal of sectoral determinations was introduced into the bill by the Department of Labour and not as a result of negotiations within the National Economic Development and Labour Council (Nedlac).
Sectoral determinations are set by the minister on the recommendations of the Employment Conditions Commission.
Lamati explained the phase-out of sectoral determinations on the grounds that they resulted in considerable complexity.
"According to research undertaken for the Department of Labour, SA has more wage schedules attached to sectoral determinations than several other African countries.
"In 2015 there were 124 minimum wage schedules in SA compared to 55 in Kenya, 32 in Namibia and one in Ghana.
"The complexity of the sectoral determination system makes it difficult to understand for workers … and increases the likelihood of poor compliance," Lamati said.
"Introducing a national minimum wage provides an opportunity to simplify minimum wage regulation and improve compliance."
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