The DA has submitted written comments to the National Minimum Wage Committee opposing an increase to the national minimum wage (NMW) for the 2025 financial year.
The DA’s objection comes after the NMW Commission invited stakeholders to submit their comments on possible adjustments to the minimum wage for next year, with the deadline being Monday.
The party argued that increasing the minimum wage would worsen the country’s unemployment rate, currently at 33.5%.
It proposed the current minimum wage should instead remain unchanged.
The current minimum wage is R27.58 per hour, which was announced by former Employment and Labour Minister Thulas Nxesi in February.
The DA’s spokesperson on employment and labour, Michael Bagraim, claimed the labour market would feel the pinch of an increased minimum wage, as businesses may not be able to afford to cover costs and salaries.
“The current NMW creates barriers for the unemployed, particularly young people and low-skilled workers, which sets a wage threshold that businesses may not be able to afford.
“Many companies are unable to hire new employees unless their productivity exceeds the mandated minimum wage. As a result, the most vulnerable segments of the population are locked out of the job market, perpetuating a cycle of poverty and dependency on social grants,” said Bagraim.
Instead of stretching the gap between the employed and unemployed, the current minimum wage maintains a healthy balance of existing workers and opens job opportunities for job seekers.
“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 believes that halting further increases to the minimum wage is a necessary step to make South Africa’s labour market more accessible, reduce unemployment, and restore dignity through work,” said Bagraim.
Contrary to the DA, labour federation Cosatu proposed the minimum wage be increased to 8.9%.
According to the SABC, the parliamentary coordinator for Cosatu, Matthew Parks, said increasing the minimum wage would alleviate inequality and poverty while ensuring employers are compliant with labour laws.
Parks’ words come after the Labour Department recently discovered that some eateries in Gauteng were implicated in underpaying workers and hiring illegal foreigners.
“There are some issues on compliance. We have done research in restaurants, farms, construction and some domestic workers. There are issues around compliance, but there are compliance issues with every law we have in the country, but we have the law to try and guide what is acceptable in society. We need to do more and better with compliance, we need to have more workplace inspections by the Department of Labour and Labour inspectors,” Parks told the SABC.
Moreover, Bagraim urged the government to find alternative ways to sustainable job creation, and tackle the unemployment crisis head-on.
“The DA’s policy position is to freeze the NMW at its current level. We propose labour reforms that will expand job opportunities, particularly for the youth, such as a Youth Employment Opportunity Certificate and amending existing collective bargaining structures to benefit small businesses,” said Bagraim.
The Star
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