solidariteitANA reports that trade union Solidarity said on Tuesday that the implementation of the proposed R3,500 national minimum wage would increase labour costs.  

Dr Eugene Brink of the Solidarity Research Institute said:  “The implementation of the proposed minimum wage will increase labour costs as a whole, and as a consequence, businesses will employ fewer people in future.  In the end, the unemployed who can’t find jobs, as well as quite a number of working people who would eventually lose their jobs, would pay for it.”  He also said the implementation of the minimum wage would further accelerate the process of mechanisation.  Moreover, smaller businesses would be especially hard hit.

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