Labour Buzz: Wage increases for 2020

A wage increase is on the cards for the new year

Sonja Vorster 
To date, the Department of Labour have not been on their toes, so to speak. The National Minimum Wage (NMW) came into effect on January 1, 2019, and should by right have been reviewed and updated.

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Many minimum wage employees have been eagerly awaiting the increases.  The only sector that was corrected was Retail and Wholesale (Number 9) on August 2, 2019. No other sectoral determination has been adjusted and neither has the NMW Act.

Employers need to obtain clarity and employees are obviously very anxious, as living costs have risen for all. Employers are finding the restricted labour legislation and the other legislation related to labour extremely difficult to follow, especially with all the amendments.

Just to keep up with it is a task on its own. Employers complain all the time that nothing is coming down and with industry at times coming to a standstill due to Eskom, everyone is battling to keep their heads above water.

I will encourage employers to look into the application for exemption that is available on the Department of Employment & Labour’s website: www.labour.gov

If and when adjustments are made to the legislation, apply timeously for exemption.  Discuss and consult individually with your employees what the restrictions are on the business before reducing employees, implementing short-time or closing shop.

Rent and overhead costs are one of the major issues many employers are battling with.  Shrinkages (theft) have been found to be above 80% internally.

Estcourt is a small town where this has happened more than the businesses can afford. Once dealt with, the dismissed employee then may sit with a criminal case that looms ahead and this further adds to the high unemployment rate and then adds to the high crime rate, as many unemployed resort to “other” desperate measures.

Evowood is just one example of a large company closing down. We can debate as to the reason for closure, but the fact remains that it is closed and a total of 613 people lost their income. Worse, to date, none have been paid their final dues by the liquidators and the UIF resources are running out.

It does not help to lay blame on anybody; the damage is done. People cannot find employment unless they leave town and then it is no guarantee. As an employer or an employee, look after each other. Build the business together. Unions cannot help you when you’re sitting without a job; then you’re on your own.

Do not make crazy demands on each other. Listen and negotiate, and start thinking of how WE, as a team (Worker & Employer), can save the business. Unemployed individuals should also use the Department of Labour’s website on Facebook as a guide to apply for positions.

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