COSATU Statement on the National Minimum Wage negotiations

17 August 2016

The Congress of South African Trade Unions acknowledges the appointment of the National Minimum Wage Advisory Panel of experts by Cde Cyril Ramaphosa, the Deputy President of South Africa this weekend. We also note that the ANC NEC has given government a mandate to speedily conclude the NEDLAC process of finalising the introduction of a National Minimum Wage.

COSATU, together with our allies in organized labour, and community constituencies, will give the panel the necessary support to ensure its work reaches a successful and speedy conclusion. 

It is critical to ensure that the country takes forward a new wage policy which addresses the unacceptable levels of working poverty and wage inequality. This requires a package of interventions.

A meaningful National Minimum Wage will be an important part of this package.

 We encourage the panel to apply its mind to what would constitute such a meaningful National Minimum Wage, which will make a real impact on the 5,5 million full time workers currently earning below the working poor line.

Labour has raised its concern about the length of the negotiations process. The negotiations have already taken over 18 months, despite the commitment to conclude them by July last year.

The NMW Advisory Panel must conclude its work as rapidly as possible, so that the negotiations can be concluded, and a NMW implemented.

We hope that government, in line with the mandate from the ruling party, will instruct its negotiators to approach this matter with the necessary urgency and focus. We caution big business that any delaying tactics will be rejected by labour, as well as any attempts to entrench the current ultra low wage structure.

Issued by Sizwe Pamla, National Spokesperson, COSATU, 17 August 2016