Cosatu Backs Minimum Wage Increase, Calls for Stronger Enforcement and Better Resourcing

The Congress of South African Trade Unions (Cosatu) recently gave a nod of approval to the National Minimum Wage Commission's report which proposed a Consumer Price Index (CPI) plus 3% increase in the national minimum wage for 2024. Despite this backing, Cosatu's parliamentary representative, Matthew Parks, underscored that the proposed amount does not equate to a "livable wage" and brought attention to the ongoing struggles faced by lower-income workers in South Africa.

During an interview with Moneyweb@Midday, Parks highlighted that the minimum wage serves as a vital tool for poverty alleviation, meant to benefit approximately 6 million underpaid workers in the country. The proposed wage increase would provide a measure of protection against inflation, which tends to impact the basic necessities of the low-income workforce more severely. However, the increase would still place earners well below the estimated living wage of R7,500.

Parks drew on historical comparisons, stating that when the De Doorns farmworkers' strike occurred a decade ago, workers in the agricultural sector were making as little as R6 an hour, while the current minimum wage hovers around R25.42 an hour. With the minister's consent to the suggested increase, the wage might reach about R27.50 an hour.

Nevertheless, the challenges regarding enforcement and compliance remain significant. UCT research indicated that about 45% of employers engaged with minimum wage workers are not complying, particularly in informal sectors such as domestic and agricultural workforces. Acknowledging that no law is fully complied with immediately after implementation, Cosatu underscores the necessity for a multi-faceted approach in improving adherence rates.

Trade unions are urged to play a more active role in recruiting workers and educating them about their rights. The Department of Labour is called upon to intensify workplace inspections. Furthermore, the recent amendments to the Employment Equity Act tie the compliance with the minimum wage to eligibility for government tenders, providing a meaningful incentive for employers to abide by wage regulations.

Parks also pointed out that despite formulating progressive laws, the government faces significant hurdles in terms of suitable resource allocation. He brought into focus the example of the newly formulated Investigating Directorate against corruption within the National Prosecuting Authority (NPA), citing high vacancy rates and slow-moving court processes that undermine its effectiveness.

The journalist concludes the article by reflecting upon the broader implications of the wage increase debate on the South African society, questioning the readiness and capability of the Labour Department in ensuring effective enforcement and contemplating the future endeavors needed to foster a stronger culture of legal compliance in the workplace.