Tag: National Minimum Wage (NMW)

Stats SA recently announced South Africa’s unemployment rate has increased to 27.6%. The expanded rate increased to 38%, which translates to 9,994,000 unemployed people.

It is an unmitigated moral tragedy that in the year of celebrating what would have been Mandela’s 101st birthday, the incumbent government has betrayed him on an issue about which that he felt strongly. This is the resolution by parliament to make it constitutionally permissible to expropriate land without compensation (EWC). Despite the rhetoric to the contrary, the resolution does not exempt anyone, not any racial group or entity.

Much is written about inequality, decrying high salaries paid by companies to their executives as being one of its main causes, while no consideration is given, or attention paid to the plight of the unemployed. Those who earn zero! Why is government grinding them into the ground with job deprivation laws?

The National Minimum Wage (NMW) Bill has been passed by the National Assembly and sent for concurrence to the National Council of Provinces. The implementation date of the NMW Bill will be announced after the National Council of Provinces (NCOP's) select committee considers the NMW Bill. The NMW legislation is intended to provide for a national minimum wage; to establish a National Minimum Wage Commission; to review and annually adjust the national minimum wage and provide for exemption from paying the national minimum wage.

What are the practicalities in implementation when trying to apply and decode the draft Bill? I have spent considerable time recently evaluating the practicalities of implementing the Bill on the NMW at numerous clients’ requests. I find it lacking clarity as there are no practical methods for calculating wages and it doesn’t adhere to ‘plain language principle’.

In the real world of economic consequences, the NMW is set to harm a great many unfortunates who currently earn incomes that are well below the NMW. The NMW will cause many to lose their jobs and make it even more difficult for the 9.48 million unemployed to access jobs.

Mr Ramaphosa, like most South Africans I am relieved that you have ascended to the country’s highest political post. However, you of all people know that you start your Presidency with an economy in deep trouble – and one in which the unemployed have been almost completely ignored.