On 3 July, the German parliament adopted, for the first time, a national minimum wage. It will be phased in between 2015 and 2017 and workers will earn a minimum of €8.50 (R125) an hour. Over five million workers in low-paid jobs are expected to benefit.
“The decision will powerfully strengthen Cosatu’s campaign for a national minimum wage in South Africa,” said Patrick Craven, national spokesperson.
Craven said if “right-wing” European governments with lower levels of inequality than South Africa could successfully enforce a national minimum wage, “there can be no argument that it is both necessary and practical in South Africa” he said.
Craven said that Cosatu would continue to demand that a minimum wage be adopted in the country as well. “It will both reduce inequality and poverty and stimulate economic growth, as the additional money earned by workers is converted into increased demand for goods and services.”
He added this would lead to “more jobs for those producing the goods and delivering the services”.