SA government must focus on creating quality jobs to banish poverty
Government actions like these alleviate companies’ worry that they cannot afford living wages and a self-balancing system that preserves competition across the market.
“The South African government, at the municipal, provincial, and national levels, can change the nation’s state for the better by supporting employers to pay living wages,” says Ines Meyer, Chairperson of the Living Wage South Africa Network and a Professor at the University of Cape Town.
“A living wage can turn the tide of the country’s fortunes, bring peace and stability, promote equality and stimulate economic growth,” she says. “Many employers believe they cannot afford to pay lowest paid employees decently. As humans our decisions are often driven by anxiety more than facts. The government could counter this fear through incentives to those who do pay living wages,” she says.
What is a living wage?
A living wage is a sufficient income for an individual and their family to afford the necessities of life, have something over for savings, and be prepared for life’s emergencies.
This starkly contrasts with the current national minimum wage that is legislated but does not lift poverty. While it is about affording dignity through fair wages, it needs to be accompanied by treating employees decently in all aspects of their work life.
The Living Wage South Africa Network has come up with the following ways in which government could support employers to pay living wages:
As South Africa’s single largest employer, lead by example by becoming its foremost living wage employer at national, provincial and municipal levels.
Leverage the State’s immense purchasing power by preferring contractors who pay living wages, thereby incentivising employers to do so.
Encourage employers to embrace a living wage approach through payroll subsidies, incentive schemes or tax breaks.
Give special attention to small businesses whose slim profits may dissuade them from offering a living wage by providing extended subsidies, allowances and tax incentives.
Identify and implement sector-specific initiatives that help special-case employers transition more easily to a living wage scheme.
Invest in living wage employers through skills development programmes that enhance their productivity, efficiencies and competitiveness. Reward organisations who work with living wage employers throughout their supply chain, thereby promoting peer-based auditing.
Partner with organisations that gather, analyse and disseminate national data that helps employers set a fair living wage in their companies, industries or sectors.
Government actions like these alleviate companies’ worry that they cannot afford living wages and a self-balancing system that preserves competition across the market.
“True peace can only exist when all South Africans are lifted out of poverty, and the government can make this happen by supporting and assisting employers eager to adopt the living wage concept,” concludes Meyer.
