Busting Schussler's Myths, Exposing White Excess
In the Business Day and Politicsweb (2012/05/07) "Wages of the unskilled too high", Mike Schüssler launched the first salvo against the employed section of the working class, to be followed later by the siege from the DA on COSATU Headquarters. The underlying assertion among Schüssler, the DA and some policymakers is that workers in South Africa are way too expensive.
They are resolute that if they got their way to lower the wage, there would be some resolution to the legendary structural unemployment. It is increasingly becoming clear to them that the continuing colonial structure of the economy and the extremely concentrated power relations that define it, are no longer the main causes of South Africa's socio-economic catastrophes. They have now discovered the silver bullet to the problem: cut wages!
Schüssler has emerged as the ideological representative of this view. Newspapers ran headlines that were inspired by Schüssler's work. However, Schüssler's work can be refuted at three levels: the abuse of statistics, the inaccuracy of his information, and his misconception of purchasing power parity.
In relation to the abuse of statistics, Schüssler's work is replete with the use of averages in the context where these are inappropriate. For example, he claims that the average worker gets about R13 200 per month and goes on to assert that generally, working South Africans have relatively good standards. This is an abuse of statistics. In the context where the earnings distribution is so heavily skewed in favour of white people in particular, the use of an average certainly produces an illusory picture of reality.
Rather the appropriate statistic to use is the median, which gives the level of earnings below which and above which half of the population lies. A publication by Statistics South Africa called "The Monthly Earnings of South Africans (2010)", reports that the median earning of South Africans is R2800. To get the extent of earnings distribution in this country, half of working Africans earn less than R2 167 whereas almost 95% of white people earn more than R2000. In fact Schüssler's numbers talk more about white South Africans, half of whom earn more than R9 500, than the majority who are African. Indeed, being white and working in South Africa should feel good.