DA rejects COSATU's job-killing proposal
If any confirmation was needed, COSATU has proven beyond all doubt that it does not care about creating jobs for unemployed South Africans. COSATU is engaged in a war against the poor at a time when poverty and unemployment are our greatest national challenges.
By creating a national minimum wage across all sectors, COSATU's proposed national minimum wage policy will undermine South Africa's efforts to create jobs, and threaten existing jobs (see Business Day report). Variations in value added and productivity between sectors mean that a national minimum wage would price thousands of South African workers out of jobs right across the economy and kill off jobs in those industries under the most pressure right now.
South Africa already ranks fourth last out of 142 countries in terms of"Flexibility in Wage Determination" in the 2011 World Economic Forum (WEF) Global Competitiveness Rankings. Our performance here is a major contributor to our unemployment rate, which is amongst the highest in the world. COSATU's proposal will sink us to rock-bottom on this list.
Instead of further centralising the minimum wage, we should be looking at increasing flexibility by decentralising it further. More consideration needs to be given to rural versus urban minimum wages within sectors as well as minimum wages based on the size of the firm, with larger firms paying higher minimum wages. Such an agreement has been negotiated in the leather footwear sector, for example. Many jobs have been created - and preserved - because of it.
We always knew that COSATU was not concerned about the rights of unemployed South Africans. What is remarkable is that they appear willing to risk the jobs of their own members.
We have a moral obligation to put the poorest and most marginalised people in our society first. This is the DA's number one priority. We will keep fighting COSATU's attempts to kill jobs in our country.
Statement issued by Sej Motau MP, DA Shadow Minister of Labour, June 6 2012
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