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Marcus: 8% wage hikes not sustainable

Nov 06 2014 16:12
Reuters and Carin Smith

Johannesburg - South Africa's struggling economy cannot sustain current wage settlements of around 8%, which are also a threat to jobs, SA Reserve Bank (Sarb) governor Gill Marcus said on Thursday.

"Settlements tend to be around 8%. That's still too high if you are looking at sustainability. One of the consequences I think is of great concern is ... increased unemployment," Marcus said during an interview on a private radio station.

The Portfolio Committee on Labour said on Thursday it will conduct public hearings on the national minimum wage in the Western Cape this weekend.

This parliamentary process follows President Jacob Zuma’s request during the 2014 State of the Nation Address that modalities of implementing a national minimum wage be investigated.

The chairperson of the committee, Lumka Yengeni, said in a statement parliament will afford every South African an opportunity to be heard on the matter.

Various stakeholders, including executive mayors, domestic workers, farmworkers and union representatives from around the Western Cape have been invited to the public hearings.

They will take place at 09:00 on November 7 2014 at the Gugulethu Sports Complex and at 09:00 on November 8 2014 at the Paarl East Thusong Centre.

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jacob zuma  |  gill marcus  |  sa economy  |  minimum wage

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