The Sunday Independent reports that the enactment of the national minimum wage bill has been welcomed by workers and trade unions, but some economists have questioned the timing.
President Cyril Ramaphosa announced on Monday that millions of South Africans would be eligible to earn a minimum of R20 an hour or R3,500 a month. The bill was signed on 23 November last year and came into effect on 1 January 2019. Labour federation Cosatu said this would offer a solid foundation for workers and was “part of addressing issues of economic growth with regard to income distribution and unemployment.” Fellow federation Fedusa said the announcement came at a time when workers were struggling to make ends meet and commented that at least this would force every employer to pay the required R20 an hour. However, economist Chris Hart was not convinced about the timing of the announcement, saying it was a strategy for the ANC to score votes in the May elections. “I don't have a problem with the minimum wage if we have policies to end poverty. The problem is, we need to create more jobs at the moment. The unemployment rate is the biggest issue,” said Hart.
- Read the original in full of this report by Manyane Manyane at IOL News
- Read too, SA launches minimum wage ahead of election, at EWN
Get other news reports at the SA Labour News home page