The Democratic Alliance (DA) has voiced its opposition to any proposed increases in South Africa’s National Minimum Wage (NMW), responding to the Department of Employment and Labour’s recent invitation for written representations, Cape {town} Etc reports.
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In a statement last week, the DA argued that raising the minimum wage would exacerbate South Africa’s high unemployment rate and suggested keeping the current wage unchanged.
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The current minimum wage is R27.58 per hour, which was announced by former Employment and Labour Minister Thulas Nxesi in February.
’South Africa’s labour market is constrained by multiple factors, especially the impact of the minimum wage on employment opportunities,’ says the the DA’s spokesperson on employment and labour, Michael Bagraim.
‘The current NMW creates barriers for the unemployed, particularly young people and low-skilled workers, by setting a wage threshold that businesses may not be able to afford.’
The party stated that many companies cannot hire new employees unless their productivity exceeds the minimum wage, locking vulnerable populations out of the job market and perpetuating poverty and dependency on social grants.
‘The National Minimum Wage Commission’s approach to link future increases to inflation and other economic indicators does not adequately consider the country’s severe unemployment crisis.’
‘Although protecting the purchasing power of existing workers is important, the unintended consequence of further increases will be to reduce the willingness of employers to hire.’
The DA believes keeping the current minimum wage balances protecting existing workers while opening employment opportunities for those currently excluded from the workforce.
‘While the NMW may reduce inequality among those already employed, it exacerbates inequality between the employed and the unemployed,’ states Bagraim.
‘Those without jobs remain trapped in poverty, unable to gain skills, build work experience, or earn any income at all.’
‘Even a modest wage would significantly improve the livelihoods of those currently relying on the Social Relief of Distress Grant, allowing them to build towards better opportunities over time.’
The DA’s policy is to freeze the NMW and implement labour reforms to expand job opportunities, especially for youth, including a Youth Employment Opportunity Certificate and amending collective bargaining structures to support small businesses.
The party suggests that these measures aim to create a more flexible, inclusive labour market that addresses South Africa’s unemployment crisis, making the labour market more accessible and restoring dignity through work.
In contrast to the DA, the labour federation COSATU has proposed an 8.9% increase in the minimum wage.
In a statement, COSATU condemned the DA’s proposal as an attack on the six million workers in sectors like farming, domestic work, construction, cleaning, security, and hospitality who depend on the NMW.
Cosatu adds that it has fought for decades to establish a minimum wage, a key commitment of the African National Congress’ Freedom Charter.
‘The NMW Commission is legally required by the Act to review and adjust the NMW annually to protect it from being eroded by inflation and to ensure it retains its poverty and inequality alleviation impact,’ says COSATU national spokesperson, Zanele Sabela.
‘The DA’s call to impose a permanent freeze on the NMW is a call for the NMW Commission to break the law!’
‘It is stupendous that a Member of Parliament, who was there when Parliament passed the Act, can make such a call for government to break the law!’
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