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Cosatu wants a minimum wage

I see that Cosatu is again pushing for a minimum wage which they want increased to R5 000,00 a month.  I understand the motivation behind it, and I understand that people around the world are pushing for minimum wages, but I just cannot see something like that happening in South Africa.  Those employed will always be quick to say that they like such a minimum wage, but I wonder though how many of those people who have workers assisting them at their house or with their garden would actually agree to give those employees of their own R5 000,00 a month. There are a lot of people in the country who work as domestic workers, for example, and while it would be wonderful if they could all be paid a minimum of R5 000,00, I just don’t see that the vast majority of people can afford to pay that much.  There is no doubt that a good domestic worker is worth at least that, but it is not always about what one is worth – it is about the state of the economy and what people can afford and one must think very carefully before introducing minimum wages in a country which has such a devastating and high unemployment rate.  

One must not forget that the unemployment rate, as is published from time to time, is the percentage of people who are actually looking for a job and it does not include those living, for example, in rural areas who long ago gave up on looking for a job.  There is room to believe that the real rate of unemployment in South Africa is 40% and of course that is precisely why, together with our lack of effective policing and criminal sanctions, we have such a high crime rate.  The first thing we need to do is to attract foreign investors and get more money into South Africa.  One would think that with our weak currency it would be a haven for all sorts of overseas companies to use for their off-shore call centres and outsourcing all sorts of work, from reading radiologist reports to manufacturing.  In regard to the example of radiologist reports, one must never forget that most radiologists sit and look at a computer screen of the X-rays – they do not need to be in the same office, same country or the same continent as to whoever is being X-rayed to do a report on that particular person and frequently are not, but that is the kind of work that we are losing to India as well as outsourcing of secretarial services and the like because highly qualified legal secretaries can be outsourced to India more easily than to South Africa.  I am not going to mention our labour laws again, but that is certainly one of the major problems and it is a pity that with such a weak currency we cannot at least take advantage of our currency by competitively offering our employees to companies around the world.

Posted by Michael de Broglio on Friday 01-Apr-16 Share on Facebook   Tweet It

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Comments

Prishani   said:
on Friday 08-Apr-16 07:52 AM
I believe that all employees are entitled to a fair and reasonable wage, especially with inflation rates, however one has to take into account other factors before making such a huge adjustment, if individuals/business who are actually paying these employees cant afford the wage increase, then most of these workers will not be employed and this will leave them in a worse off position.

Daniella  said:
on Friday 01-Apr-16 04:50 PM
If one cant afford R5000.00 a month for a domestic worker then one should do their own cleaning , if someone is struggling in this economy with a decent salary imagine the struggles domestic workers are facing especially if they get paid pennies, as many of them send money home to their families and still have so pay their expenses in Joburg.

Charlotte Harding  said:
on Friday 01-Apr-16 10:16 AM
I agree. With the rate that inflation is going up, food prices are soaring, electricity hikes all the time, how can one afford to pay R5 000 for a domestic worker on top of everything else. It's ridiculous where everything is going to in this country. It's just a downward spiral.

Angelique P  said:
on Friday 01-Apr-16 09:46 AM
South Africa needs to provide more work opportunities so that there will be less homeless people.
If the wages increase to R 5000.00 I think the employers will find a way to do things themselves before hiring someone.
Most people will not be able to afford domestic workers if the rate is so high, and then the unemployment rate will only go higher.

Johann  said:
on Friday 01-Apr-16 09:29 AM
That would simply not be affordable to the majority of the employers in the country. Imagine a farmer or a factory owner who employs 300 workers - the salary expense will then be a minimum of R1.5 million per month!

Suzanne  said:
on Friday 01-Apr-16 09:05 AM
It would be wonderful if everyone could earn a minimum of R5000 a month, but I don't see how most people can afford to pay their domestic or garden worker that much. This would in turn push the unemployment rate up as they would be losing jobs due to the average person not being able to pay their salary.

Zanell  said:
on Friday 01-Apr-16 08:40 AM
I don't understand how people can live off such a small amount every month considering the fact that they still need to put their children through school. I think everyone would love to pay R5000 a month but realistically I don't think that is possible for everyone.

Melissa P  said:
on Friday 01-Apr-16 08:31 AM
I don't think this is a realistic outcome for SA. Although I believe that it will help a lot of people I just don't think it's realistic to pay house workers and gardeners R5000 when you can't afford it. That will result in people who really need a job, would be willing to work for less. The unemployment rate is a growing concern.

patrick  said:
on Friday 01-Apr-16 08:27 AM
it is for his reason that employers does not want to employ people.let each party pay according to what he she can pay.

Brumilde  said:
on Friday 01-Apr-16 07:54 AM
I dont think its a realistic suggestion. i certainly wont be able to pay my gardener R5000 per month he only works twice a month in any case. SA should def look into creating more jobs, but for everyone not just for some. but having the government we have not much is going to change soon.

Kaylee  said:
on Friday 01-Apr-16 07:40 AM
I agree that it would be difficult to have a minimum wage in every sector. Unfortunately, most of our workers are not educated and don't understand the economy and cannot understand why they are not able to have an increase in their salary and we will have continuous strike action which continues to cripple the economy. The unemployment rate in this country is shocking and like you say this doesn't include people that have given up looking for jobs and more than likely have now turned to a life of crime. Maybe the government should start looking into more effective border control and stop believing that "Africa is everyone's Africa" and letting everyone into the country creating more and more problems with the employment rate and in turn the economy.
After the Constitutional Court ruling yesterday, maybe it would be an idea for our useless government to step down and reinstall some faith in foreign investors so they can start investing in our economy again.
I do like the idea of outsourcing to overseas companies and at least that would be start in terms of creating employment.

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Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
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