Picture: 123RF/DEAN DROBOT
Picture: 123RF/DEAN DROBOT

When a national minimum wage was first mooted the DA warned that jobs would be lost in the process. Sure enough, this happened. The Treasury predicted 750,000 job losses, and though we believe it has been many more than this, any job lost is a tragedy.

The new minimum wage to be implemented from March 1 amounts to a 4.5% increase, that is about 1.5 points above inflation. The business component of Nedlac recommended an increase in line with inflation. The agricultural sector in effect faces an increase of 16% and the domestic sector an increase of almost 19%. It is clear the government doesn’t care about the retrenchments that will surely take place in both sectors.

It is great for workers to receive increases, but these must be sustainable and therefore should be implemented on a sector by sector basis after proper negotiations.

Michael Bagraim, MP
DA deputy employment & labour minister

JOIN THE DISCUSSION: Send us an e-mail with your comments. Letters of more than 300 words will be edited for length. Send your letter by e-mail to letters@businesslive.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.

subscribe

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.