BRIAN KANTOR: The problem is jobs, not salaries
Absorbing labour force entrants is the challenge and it won’t be solved paying those in good jobs ever more
Chair Trevor Manuel is “very proud” that Old Mutual (https://www.businesslive.co.za/bd/companies/financial-services/2024-04-14-old-mutual-chair-trevor-manuel-hails-move-to-set-minimum-pay-at-r15000-a-month/) has raised the minimum it pays employees to R15,000 a month, “so taking a decisive step towards narrowing the wage gap”. One presumes that this minimum does not apply to the cleaners, security guards and canteen staff contracted to supply such services. Fortunately — because if so extended, it would mean many fewer of them would be employed in these humble categories.
I would be much more inclined to share the pride in firms paying more if it was accompanied by a growing payroll. It is an outcome difficult to realise when improved rewards must be accompanied by improved performance — if the firm is to survive — through productivity augmented by computers, robots, artificial intelligence (AI) and on-the-job training. The true employment heroes are the firms that can grow s...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.