Aug-Sept 2014 K.indd

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www.cosatu.org.za • AUG/SEPT 2014

reality that in the short term, many workers in vulnerable sectors may not be covered by such collective bargaining arrangements. Therefore in certain unorganised sectors it may still be necessary in the short term to retain an instrument such as the sectoral determinations, which could set minima above the NMW.

would require bee fi ng up, to develop appropriate policies and ensure implementation. • What advice is available on how best to manage this process? South Africa is not unique in this endeavour. We should make use of the considerable experience available internationally from national bodies overseeing this process, as well as technical assistance offered by the International Labour Organisation. • Finally, how would we manage the relationship between the NMW and sectoral wage bargaining? If the NMW provides a basic fl oor, it should ultimately only apply to a minority of workers in economy- the majority of workers should be covered by improved wages and conditions negotiated in sectoral bargaining forums. It is therefore welcome that the ANC manifesto promotes the need for sectoral collective bargaining across the economy. However it is a

increase the minimum wage of domestics, currently at the completely unacceptable level of R1620-R1880 per month 1 (depending on the area). This minimum needs to be urgently and drastically increased, at least in the order given to farm workers last year. • Which body should determine the national minimum wage? The most common approach internationally, is for government to decide, based on recommendations by a tripartite advisory body with expert input. Important here would be for government to set clear guidelines for the NMW, based on a national wage policy, to avoid unintentionally entrenching the existing situation of working poverty and inequality in the labour market. Our Employment Conditions Commission (ECC) would need to be restructured and given the necessary research capacity, along the lines of the Low Pay Commission in the UK. The Department of Labour too

Addressing such issues will require a process of engagement in Nedlac, the Alliance, Parliament, and involve the ECC, labour department, researchers and broader civil society. Most importantly, consultations most involve the affected workers. The NMW will form a key part of a national wage solidarity model to deal with the whole wage structure, and must also be combined with an improved social wage to address various costs which are placing extreme pressure on the wages of workers. Although these challenges are admittedly complex, this shouldn’t be used as an excuse for inaction. Growing tension in society shows the need to move decisively.

ECONOMY

1 The published version of the article mistakenly said R1150 to R1320- this amount refers to domestics working 27 hours per week or less.