summary

COSATU welcomes the National Minimum Wage Commission’s recommendation for an inflation plus 1.5% increase for 2025

The Congress of South African Trade Unions (COSATU) welcomes the National Minimum Wage (NMW) Commission’s recommendation for an inflation plus 1.5% increase for the NMW from 1 March 2025.   Whilst COSATU had tabled a slightly higher proposal to the NMW Commission, we are pleased that our demand for a positive above inflation increase has prevailed and secured the unanimous support of the Commission.

This increase will help protect the value of the NMW and workers’ ability to take care of their families.  It will inject badly needed stimulus into the economy, spurring growth, sustaining and creating badly needed jobs.  It will provide relief to 6 million workers earning within the NMW range in particular farm, domestic, construction, retail, hospitality, transport, security, and cleaning workers.

The NMW Act mandates the Commission to ensure the NMW is not eroded by inflation as this would plunge many workers deeper into debt, poverty and despair.   The NMW Commission has asked for public comments until the 14^th of January 2025.  The Federation will be presenting its submission to support the Commission’ recommendations and finalise its proposals to the Minister of Employment and Labour. We urge the Minister to move with speed to announce the final increase and ensure it comes into effect by no later than 1 March 2025.  Workers cannot afford any delays.

COSATU is pleased with the progress that has been made with the NMW since it came into effect in 2019 at R20 per hour.  Today it is R27.58 and will soon reach R30.  It has seen the wages of domestic workers rise from R15 and farmworkers R18 in 2019 to being equalised with the NMW.  This is a far cry from the poverty wages farm and domestic workers were paid a few years ago, at times as little as R6 an hour.  It is one of government led by President Cyril Ramaphosa and the African National Congress’ most important and transformational achievements.

Engagements are taking place with the Department of Public Works and Infrastructure on a road map to ensure that Expanded Public and Community Works Programmes’ workers reach the NMW as well.  It is unacceptable that such workers remain pegged at 55% of the NMW.  This must now come to an end.

Whilst we have made progress, it is critical the Department of Employment and Labour cracks down on employers who ignore the NMW Act.  Equally, we expect unions across the board to work together to expose such employers.  Organised Business  must play its part. It is unacceptable that an estimated 45% of employers refuse to comply with the NMW. This matter should be treated as a criminal offence it is and such employers made to face the full force of the law. These employers cannot be allowed to behave like they are above the country’s laws and treat their employees little better than slaves.

The Minister’s progressive commitment to employ 20 000 inspectors over the next three years must be expedited to ensure the abhorrent defiance of the rule of law by some employers is dealt with decisively.

Many miserly critics of the NMW said before it came into effect in 2019 that it would lead to a job’s bloodbath.  Independent research by the University of Cape Town has shown this not to be the case.  It has had a positive impact on reducing poverty and inequality levels and boosting the economy.  Other countries who have introduced a NMW like the US, Germany and Brazil have had similar positive experiences.

Beyond the NMW, government needs to tackle the network and other obstacles to growing the economy in particular cable theft, aging infrastructure, endemic crime and corruption, and entrenched poverty and inequality.  These are critical to fixing the state, unlocking the economy, creating decent jobs as well as ensuring workers earn a living wage.

Issued by COSATU 

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za