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DA proposes independent panel to determine sectoral wages to prevent job losses

FINANCIAL GRATIFICATION: Cultivating the culture of saving money early in life can reap a great and rewarding harvest later PHOTO: PUXLEY MAKGATHO
FINANCIAL GRATIFICATION: Cultivating the culture of saving money early in life can reap a great and rewarding harvest later PHOTO: PUXLEY MAKGATHO

DA proposes independent panel to determine sectoral wages to prevent job losses

The Democratic Alliance has proposed that an independent panel should be established to prevent job losses‚ arguing that a one-size fits all approach‚ no matter how well intentioned‚ will result in further job-losses.

DA spokesman on labour matters Ian Ollis said the party believed that when setting sectoral minimum wages‚ the peculiarities and challenges of different sectors of the country’s economy should be taken into account.

As an example‚ he pointed out that agriculture in South Africa was on the brink of collapse and that the devastating drought‚ and lack of support by the national government‚ had already seen tens of thousands of jobs shed.

“This is not likely to end. Mandating a Minimum Wage that ignores this peculiarity will make the situation even worse‚ hurting the very people who are in need of help during this trying time‚” Ollis said.

“The Deputy President‚ Cyril Ramaphosa’s announcement yesterday that his proposed National Minimum Wage will include exemptions of some sectors such as Agriculture‚ and Domestic Workers‚ for this very reason‚ is a clear acceptance that a sectoral approach is wiser‚ especially as we face an economic downturn. Other sectors need to be treated in similar fashion such as the textile industry which faces competition from low priced imports.”

Ollis added that the DA would propose the establishment of an independent panel – “that cannot be unduly influenced by politicians‚ big business or big labour unions — mandated to set minimum wages for each sector‚ taking into consideration all relevant factors‚ including the need to create jobs for the 8.9 unemployed South Africans and ensure dignified pay for working South Africans”.

This approach would allow‚ in some sectors‚ the setting of a minimum wage higher than that proposed by the Deputy President.

 

 

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