'Key elements in the 2017 agreement were not taken forward in minimum wage bill'

There has been mixed reaction to the passing of the controversial national minimum wage bill with the South African Federation of Trade Union (Saftu) saying it will intensify its fight against the minimum wage of R3,500 per month or R20 an hour.

Members of Parliament on Tuesday passed the bill following months of discussions and public hearings.

Co-director of the newly-established Institute for Economic Justice Neil Coleman was the labour's lead negotiator between 2015 and 2017 at the National Economic Development and Labour Council (Nedlac).

He says the initial package tried to ensure that there would be an effective mechanism to ensure that the value and impact of the national minimum wage progressively improves over time and reduces wage inequality.

He says however changes were made which failed to incorporate critical elements in the drafting of the bill.

That history is very important. We arrived at a package which was negotiated with the deputy president at the time at the head of what was called the committee of principles. That package was finalised in February 2017 and was supposed to be translated into legislation.

Neil Coleman, Co-director of the newly-established Institute for Economic Justice

Unfortunately that was left to the department of labor to do and when they came with legislation in May we were quite shocked to see that key elements of the package were not present and new elements which were not considered in negotiations - in particular the proposed scrapping of the sectoral determinations...

Neil Coleman, Co-director of the newly-established Institute for Economic Justice

That is water under the bridge and what had happened was the department said time is up, we will just have to agree to disagree and you will have to fight this out in the parliamentary process.

Neil Coleman, Co-director of the newly-established Institute for Economic Justice

He continues to raise some of what was left out in the 2017 negotiations and agreement.

The sectoral determination was one issue, another issue was the question of the annual increases in the national minimum wage which is agreed would keep pace with inflation that has been taken out of the legislation in its original form. The second issue was that we insert a medium term target.

Neil Coleman, Co-director of the newly-established Institute for Economic Justice

Click on the link below to listen to the full discussion....


Recommended

by NEWSROOM AI
Read More
1 MILLION job losses predicted under new minimum wage laws

1 MILLION job losses predicted under new minimum wage laws

Experts are predicting massive job losses following the implementation of the R20 per hour minimum wage.

Saftu plans two-day city occupation over minimum wage demands

Saftu plans two-day city occupation over minimum wage demands

Saftu General-secretary Zwelinzima Vavi says they are drafting a new plan of action to challenge the minimum wage.

[LISTEN] Saftu, Nactu and Fedusa speak ahead of the planned national strike

[LISTEN] Saftu, Nactu and Fedusa speak ahead of the planned national strike

On Wednesday, workers will embark on a nationwide protest against a proposed minimum wage of R20 per hour.

'Minimum wage only gives us a foundation for a living wage'

'Minimum wage only gives us a foundation for a living wage'

Cosatu spokesperson Sizwe Pamla says the proposed minimum wage should not be dismissed.

'Min wage (R3500) to cause retrenchments, but for many it’ll be a big relief'

'Min wage (R3500) to cause retrenchments, but for many it’ll be a big relief'

The Money Show’s Bruce Whitfield interviews SA Payroll Association Exco Member Nicolette Nicholson.

Popular articles
'Old Mutual directors facing imprisonment over Moyo sacking'

'Old Mutual directors facing imprisonment over Moyo sacking'

Moyo's' lawyer says court granted Moyo permission to introduce new evidence in his bid to have Old Mutual declared in contempt.

Who influenced the colours of Bo-Kaap? New podcast investigates

Who influenced the colours of Bo-Kaap? New podcast investigates

In a new series, Haji Mohamed Dawjee and Rebecca Davis unravel a number of myths and uncovers why the houses are colourful.

Your financial advisor probably earns a commission. That’s a huge problem

Your financial advisor probably earns a commission. That’s a huge problem

Your advisor’s "free" advice may cost you dearly. Pay by the hour, warns personal finance expert Warren Ingram.

Gautrain Sandton water cut until Gupta-linked company pays City R8m - Mashaba

Gautrain Sandton water cut until Gupta-linked company pays City R8m - Mashaba

Joburg City mayor explains the irregularities around ownership of the Gautrain Sandton Station land by Cedar Park Properties.

'Duke and Duchess of Sussex visit highlights goodness of South Africa'

'Duke and Duchess of Sussex visit highlights goodness of South Africa'

Professor Pitika Ntuli weighs in on Prince Harry and Meghan Markle's tour of the country.

'We have evidence that the EFF and Julius Malema took bribes for tenders'

'We have evidence that the EFF and Julius Malema took bribes for tenders'

Arabile Gumede interviews Stefaans Brummer, a journalist at the amaBhungane Centre for Investigative Journalism.

N West teacher suspended over photo of black and white pupils seated apart

N West teacher suspended over photo of black and white pupils seated apart

Images on social media show black and white pupils seated at separate tables, allegedly at a primary school in Schweizer Reneke.