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Cape Town - The minimum wages legislation has created barriers for business and huge obstacles for the unemployed who consequently find it
difficult to get jobs, according to Janine Myburgh, new president of the Cape Chamber of Commerce and Industry.
"As most of these job seekers have little or no training or for that matter experience, most businesses cannot afford either the costs of training or the minimum wage," Myburgh said in her acceptance speech.
"The department of labour and our unions continue to confuse the issues of a minimum wage with that of a living wage."
She said a recent example is where the minister of labour approved a 52% increase in the minimum wage for farm workers.
"I am aware of the fact that not all farm workers are always treated fairly," she said.
"As a consequence of the 52% increase, however, we have already seen retrenchments and the decision to mechanise. How many small agricultural businesses were stopped in their tracks? How many plans to start new businesses were abandoned as a consequence of this?"
Minimum wages
Myburgh feels the way the minimum wage is constructed is a barrier which makes it difficult for new farmers to succeed, whether they come from a historically disadvantaged background or not.
"Uncertainty and challenges created by existing legislation or proposed new legislation does not install sorely needed confidence in the economy to ensure the required growth," said Myburgh.
"Here I need to make special reference to the draft promotion and protection of investment bill and the expected amendment to the Labour Relations Act. I know this is specifically a concern for the banking sector."
She said black economic empowerment legislation has created further barriers and some resentment.
"The Chamber and I fully support the ideal, but the way it has been implemented has not lived up to the promise of 'empowerment'," she said.
"The legislation has created an island of wealth for some in a sea of poverty for others. Real empowerment comes from education, real empowerment comes from skills development, real empowerment comes from skills transfer and, above all real empowerment comes from the opportunity to put those skills to work."
Business must be set free
She said a second problem is that BEE has failed to take local circumstances into account, as seen with the recent court findings against the department of correctional services.
"There are many other barriers, but the ones mentioned are sufficient to convey that certain legislation has unintended consequences that negatively affects the economy. If the economy is to grow we must get rid of many of these artificial restraints," she said.
"The obsession with legislation, regulation and control is strangling the economy. Business must be set free. Do this, and we will find ways to grow and create employment."
Of great concern to her is what she describes as an anti-business sentiment.
"Some of the worst anti-competitive behavior has come from the State-owned corporations. Telkom has been one of the worst offenders while SAA is another serial offender, with a long and costly history of anti-competitive behaviour," she said.
"How many private airlines have been driven out of business due to the fact that they could not compete with SAA which is effectively subsidised by the taxpayer?"
New alliances in Africa
She stressed that not much progress will be made by blaming each other.
"We need a process of reconciliation between Government and Business. It is business that creates the wealth of the country and most of the employment opportunities," she said.
"I hereby on behalf of the Cape chamber once again offer our assistance and expertise to all levels of government to work with government to the benefit of our economy."
Fred Jacobs, immediate past president of the chamber, said he is particularly proud of the strides the body has made in forging new alliances into Africa through partnerships with African chambers of commerce.
Another highlight for him was the chamber's dispute settlement centre, which settled over 80 cases this year.
- Fin24
"As most of these job seekers have little or no training or for that matter experience, most businesses cannot afford either the costs of training or the minimum wage," Myburgh said in her acceptance speech.
"The department of labour and our unions continue to confuse the issues of a minimum wage with that of a living wage."
She said a recent example is where the minister of labour approved a 52% increase in the minimum wage for farm workers.
"I am aware of the fact that not all farm workers are always treated fairly," she said.
"As a consequence of the 52% increase, however, we have already seen retrenchments and the decision to mechanise. How many small agricultural businesses were stopped in their tracks? How many plans to start new businesses were abandoned as a consequence of this?"
Minimum wages
Myburgh feels the way the minimum wage is constructed is a barrier which makes it difficult for new farmers to succeed, whether they come from a historically disadvantaged background or not.
"Uncertainty and challenges created by existing legislation or proposed new legislation does not install sorely needed confidence in the economy to ensure the required growth," said Myburgh.
"Here I need to make special reference to the draft promotion and protection of investment bill and the expected amendment to the Labour Relations Act. I know this is specifically a concern for the banking sector."
She said black economic empowerment legislation has created further barriers and some resentment.
"The Chamber and I fully support the ideal, but the way it has been implemented has not lived up to the promise of 'empowerment'," she said.
"The legislation has created an island of wealth for some in a sea of poverty for others. Real empowerment comes from education, real empowerment comes from skills development, real empowerment comes from skills transfer and, above all real empowerment comes from the opportunity to put those skills to work."
Business must be set free
She said a second problem is that BEE has failed to take local circumstances into account, as seen with the recent court findings against the department of correctional services.
"There are many other barriers, but the ones mentioned are sufficient to convey that certain legislation has unintended consequences that negatively affects the economy. If the economy is to grow we must get rid of many of these artificial restraints," she said.
"The obsession with legislation, regulation and control is strangling the economy. Business must be set free. Do this, and we will find ways to grow and create employment."
Of great concern to her is what she describes as an anti-business sentiment.
"Some of the worst anti-competitive behavior has come from the State-owned corporations. Telkom has been one of the worst offenders while SAA is another serial offender, with a long and costly history of anti-competitive behaviour," she said.
"How many private airlines have been driven out of business due to the fact that they could not compete with SAA which is effectively subsidised by the taxpayer?"
New alliances in Africa
She stressed that not much progress will be made by blaming each other.
"We need a process of reconciliation between Government and Business. It is business that creates the wealth of the country and most of the employment opportunities," she said.
"I hereby on behalf of the Cape chamber once again offer our assistance and expertise to all levels of government to work with government to the benefit of our economy."
Fred Jacobs, immediate past president of the chamber, said he is particularly proud of the strides the body has made in forging new alliances into Africa through partnerships with African chambers of commerce.
Another highlight for him was the chamber's dispute settlement centre, which settled over 80 cases this year.
- Fin24
