Hike the minimum wage in line with inflation – Cosatu

Three years since the National Minimum Wage (NMW) Bill was signed into law, worker organisations are urging government to step up its game, beginning with an overdue raise.

Trade union federation Cosatu is calling on the NMW Commission to increase the wage benchmark this year in line with inflation as it is required by law to do.

According to Cosatu’s estimates, the national minimum wage of R20 per hour should be increased to R21.50 because inflation had diminished the real value of the original NMW as proposed in 2017 to R17.50.

Since the NMW came into effect in January last year, Cosatu’s parliamentary co-ordinator Matthew Parks said employers had made strides in compliance overall, but some sectors and individual employers were less than prompt in catching up.

“We have seen teething problems with some employers in terms of compliance, but there has been progress overall. We do have about 8,500 individual cases which workers have referred to the Commission for Conciliation, Mediation and Arbitration regarding the NMW,” said Parks.

One industry at odds with its workforce over the NMW is the catering and hospitality sector.

The Citizen reported early last year that waiters and other floor staff employed under the Famous Brands franchisors Mugg & Bean were alleging violations of both the NMW and the Basic Conditions of Employment Act.

Waitrons cited the decades-long practice of franchisee managers charging “unlawful” breakage fees.

They also said employers were paying wages far below the recommended threshold of R20.50, forcing employees to rely on tips and back-to-back shifts to make a living wage.

Mugg & Bean said it has ascertained that 100% of its restaurants were fully compliant with the NMW.

Jeanne Geldenhuys, operations executive of the franchisor, said Mugg & Bean conducted an audit of all restaurants last February.

“The results confirmed that 100% of M&B restaurants were complaint with the NMW Act.”

– simnikiweh@citizen.co.za

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