Today's Labour News

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worldbankBusinessLive reports that labour experts have criticised a World Bank report that, among other things, suggests that the introduction of a national minimum wage (NMW) in SA would shift labour demand towards skilled labour.  

The conclusions are contained in the 11th edition of the South Africa Economic Update released in April.  The bank writes that the implementation of the NMW, to be set at R20 an hour, would also deepen the intensity of capital at the expense of unskilled labour and disproportionally affect the price of goods consumed by the poor.  Regarding inequality, the analysis suggests that “the introduction of the national minimum wage would have a positive, but marginal, impact on reducing inequalities, depending on its negative effect on employment".  Joni Musabayana, director of the International Labour Organisation (ILO) in Pretoria, disagreed with the World Bank report, mainly over its assertions that the implementation of the minimum wage would have a "less favourable conclusion".”  It is going to positively impact on millions of workers; how can that possibly not have a good effect," he asked.  Labour analyst Tony Healy said the different outlooks expressed by the ILO and the World Bank were not surprising given their different perspectives.

  • Read this report by Theto Mahlakoana in full at BusinessLive

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