This follows a recent 8.5% increase, announced by the Department of Employment and Labour in early 2024. The IRR has attributed the country’s high job losses to the current minimum wage of $1.48 per hour.

Labour movements, including the Congress of South African Trade Unions (COSATU), have long fought for a living wage for workers. COSATU Spokesperson Matthew Parks has vehemently rejected the IRR's claims, labelling them as sensationalist and unsupported by evidence.

"The IRR’s claims are not based on facts," Parks said, emphasising that the minimum wage is the result of careful research and a consensus process involving government, business, labour, and academic experts. He pointed out that this year’s consumer price index plus 1.5% increase was reached following significant reductions in inflation.

Parks further explained that the original minimum wage, introduced in 2019, was carefully considered, ensuring it was both affordable for employers and meaningful in reducing poverty and inequality. He also noted that academic research from institutions like the University of Cape Town has found that the minimum wage has not led to significant job losses, even in vulnerable sectors like agriculture and domestic work.

Addressing the IRR's concerns about job losses, Parks attributed the challenges faced by the labour market to factors such as the COVID-19 pandemic, load shedding, and material shortages, rather than the minimum wage.

Parks also highlighted the issue of non-compliance with labour laws, particularly in informal sectors like agriculture and domestic work. COSATU has been engaging with the Department of Labour to increase inspections and ensure better enforcement.

Looking ahead, COSATU is hopeful that the Minister of Employment and Labour will support the commission's recommendation for the wage increase, set to take effect in March 2025.

--ChannelAfrica--