Congress of South African Trade Unions (Cosatu) has made a proposal for the National Minimum Wage (NMW) percentage increase to be above the inflation rate to help the six million South Africans facing rising living costs.
The trade union federation has made a proposal to the National Minimum Wage Commission for an increase in the NMW of CPI inflation plus 3% for 2025.
Civil society groups on Tuesday welcomed the proposal.
Cosatu acting national spokesperson Matthew Parks said the increase was critical as the NMW was geared to support six million workers who earn within that range.
He said it was fundamental that they were protected from inflation.
“Low-income workers are hit hardest by inflation as they earn the least, and most of their wages are spent on items such as electricity and transport, whose inflation rates far exceed CPI.”
Parks added that Cosatu was confident their proposal will be implemented.
“We similarly welcome the Minister for Employment and Labour’s bold announcement that the number of labour inspectors will be increased tenfold to 20 000 over the next three years. This will be a massive boost to compliance efforts for the NMW and our labour laws.”
Mervyn Abrahams, programme co-ordinator at Pietermaritzburg Economic Justice & Dignity Group, said the NMW currently stands at R27.58 an hour and R220.64 for an 8-hour day.
“In September 2024, with 20 working days, the maximum National Minimum Wage for a general worker was R4 412.80.
This when compared to the R3 692.09 price of a basic nutritional food basket for a family of four in September 2024 clearly illustrates how low-income earning workers are battling to make ends meet.”
Abrahams added that in many instances people were forced to make compromises when buying food.
“It’s not because of choice, but due to prevailing circumstances for workers who use transport when going to work and have the burden of paying for water and electricity as well. As Pietermaritzburg Economic Justice and Dignity Group, it is our firm view that the call by Cosatu is not out of sync with the realities of many workers out there, and is something that needs to be supported.”
Evashnee Naidu, Black Sash’s regional manager in KwaZulu-Natal, said that increasing the NMW to inflation plus 3% in 2025 would help low income earners, particularly given the current situation of the economy.
“They will be more empowered with the decisions they are able to make about their own lives. Low income earners struggle on a month to month basis to make ends meet and even face the tough choices of paying for transport to get to work, to keep a job rather than buying basic necessities.”
Dr Dick Forslund, from the Alternative Information and Development Centre (AIDC) said that Cosatu’s proposal should be supported.
“Highly paid workers as a rule secure wage increases above the inflation rate. If we only increase the minimum wage by the average inflation rate every year, it simply means that inequality increases between the mass of employees and the minority who are much better paid.”
Economist Dawie Roodt said the increase would benefit those who are employed and members of Cosatu.
“It will not help the millions unemployed and these sorts of increases will cause the fiscal accounts to get into deeper trouble. It is unrealistic and won’t improve living standards for the average person.”
The Mercury