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Cape Town - Is the proposed national minimum wage of R20 an hour a boon for exploited workers, or will it simply add to South Africa's unemployment woes?
Deputy President Cyril Ramaphosa signed the R20 an hour minimum wage agreement between labour, business and government on Tuesday. He made it clear this was not a living wage and was the start of a process to assist 6.6 million South Africans who earn less than R3 500 a month.
"This is an historical development in our country,” he said. “Finally we have a national minimum wage: a national minimum wage which no doubt won’t make everyone happy and excited; a national minimum wage which is going to lift the income levels of no less than 6.6 million workers who currently are (earning below) R3 500.
“Yes, it could have been lifted to any number you choose,” he said. “But this would have had dire consequences with a huge loss of jobs.
READ: Minimum wage: Ramaphosa confirms everyone signed bar Cosatu
“It is a balance to provide a platform to improve income levels of our people,” he said. “Let me stress: this is not a living wage. This is not meant to be a wage people can live on.”
Fin24 users have very definite views on the topic. C Martin says: "It's not fair, it's appalling the rate that is being offered."
Teballo R Motsweni raises the issue of working hours: "To me this is useless while the country is currently sitting with the minimum hours of 24 hours of a casual employees.We are saying its ok for this casual employees to get paid R450 a month.. ??"
By contrast, Robert Khazamula gives the agreement a ringing endorsement: "I think it will be fine as long as they provide a law that will prevent bosses from reducing hours, for example R20 per eight hours will mean R3 800, and that money for a woman who works for a supermarket chain will be a huge improvement."
Martin Slabbert feels the new law will slown down job creation. He writes: "We need to create more jobs if we are to progress financially. Manufacturing is the only solution to job creation. To create a job, that job may not have already been in existence. Our manufacturing sector is nowhere close to where it should be and far to many products are imported.
"But at this new minimum wage we cannot compete with China, so by default we are excluding ourselves from the international market place by pricing ourselves out of the market. China has a high productivity and very competitive minimum wage."
Seventy-year-old Barbara says R20 is not enough and that the wait until May 2018, when the new law will be implemented, is too long. "Shame on you SA government, really is this the best you can do? Training is needed; life skills are needed - the car park attendants earn more, so why should people put up with your new proposals?"
S Motsepe has mixed feelings: "Yes but if they can decrease unemployment rate with that R20 per hour so that everyone can get something it will be better unlike everyone starve to death, but in the real world like our country it's an insult."
Victor Hlungwane believes R20 an hour is no real cause for celebration as it does little to ameliorate workers' plight. "People are indifferent of being employed or unemployed at such meagre pay rates. Whoever is part of this decision is self-centred and dangerous to society. R20 is taking us no closer to bridging the gap between the highest earners and the lowest earners."
