Labour federation Cosatu is seeking stricter compliance with the SA’s minimum wage legislation and wants the government to ban firms that are flouting the law from tendering for public sector contracts.
In its submissions to the national wage commission, Cosatu wants the labour department to have more enforcement powers and labour inspectors to act on violators.
Cosatu also hit out at some government departments and programmes for failing to meet the minimum wage requirements.
“It is immoral for government to demand the private sector abide by the national minimum wage but seek to exempt itself from it. It is indefensible that some sectors of the EPWP [expanded public works programme] and CWP [community works programme] have not only failed to catch up with the national minimum wage but have in fact seen the gap grow,” the federation said.
EPWP workers are entitled to a minimum wage of R15.16 per hour from R13.97 in the previous year.
“Cosatu appreciates the dire fiscal constraints facing the fiscus and the realities that government finances are extremely limited. However, this cannot condone government blatantly ignoring the progressive objectives of the very act it drafted and the president personally championed.”
The minimum wage commission is seeking inputs from stakeholders on changes to the legislation next year. The commission noted in a gazette published in August that it would publish its annual report later in 2024, in which it would make its formal recommendations to the finance minister regarding possible adjustments to the wage.
After the publication of the annual report, a further opportunity would be given to interested parties to submit written representations on the recommendations in the report, the commission said.
The national minimum wage has been in effect since 2019 at R20 per hour and has been gradually increased since then. In March, it was increased from R25.42 to R27.58.
Cosatu, which represents some of the country’s teachers, nurses, police and prison officials, seeks above-inflation increases for the lowest-paid workers, saying it would make up for the low levels of increases from 2019 to 2021 and to cushion against inflation. It is proposing that the minimum wage be increased by CPI plus 3% in 2025.
If CPI is 5.9% for 2024 (as set out by the Reserve Bank), the wage should be increased by 8.9% from R27.58 to R30.03. It also suggested that minimum wage adjustments be effected on January 1 each year.
Consumer inflation eased to 4.6% in July, the lowest rate since July 2021, from June’s 5.1% due to softer price rises in food and transport as fuel prices dropped.
“The Reserve Bank is gradually moving away from minting cents. Many cent coins have been phased out, for example 1, 2, 5 and 10 cents. This trend will continue, and cents will disappear from circulation,” Cosatu said.
“Adjusting the minimum wage by hard-to-remember odd cents makes it complicated for employers and workers to make calculations. It makes it difficult for workers to ensure they are paid in line with the act.
“Most workers paid at the national minimum wage level are paid in cash. It is not practical to pay amounts ending in random cents,” the union federation said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.