The unemployed will suffer the most under proposed minimum wage – Solidarity

29 August 2024

Solidarity announced today, according to a report from the Solidarity Research Institute (SRI), that the proposed minimum wage will further increase unemployment.

Since almost half of the country’s population is already unemployed, the consequences of the proposed adjustment will be particularly catastrophic for those wanting entry-level jobs.

Theuns du Buisson, the economic researcher at the Solidarity Research Institute (SRI), emphasises that it is essential to consider unemployed individuals when establishing labour regulations. This is the core of Solidarity’s position towards the National Minimum Wage Commission, which is considering adjustments to the national minimum wage.

“For the past three decades, the government has only focused on those already employed, without paying attention to those who would like to work, but cannot find a suitable position,” said Du Buisson.

According to the expanded unemployment rate, 42,6% of the South African population is unemployed. Furthermore, 44,2% of young people between the ages of 15 and 34 are not currently employed, busy with education or involved in any training. Therefore, Solidarity considers the minimum wage regulations to be artificial and insists that the national minimum wage be scrapped.

According to Du Buisson, the government has a complete disregard for workers’ ability to decide their own lives. Research recently done among domestic workers showed that approximately half of them are willing to work for less than the current minimum wage.

“While no one wants to encourage exploitation, we cannot allow more than ten million young people to stay at home without any hope of employment. This is especially true of entry-level jobs that can pave the way for further training, the restoration of dignity and which may ultimately lead to higher salaries. No one should be prevented from working at any level of remuneration,” he believes.

Solidarity believes that training is the most effective way to increase income. That is why significant investments are made in institutions such as Akademia, Sol-Tech, Solidarity’s offer for continuous learning and the Wolkskool (Solidarity’s cloud-based school). However, for training to be effective there must be opportunities to put it into practice. Solidarity believes that the government should stop obstructing entry-level jobs and that it should reconsider all minimum wage policies.

Issued by Theuns du Buisson: Solidarity Research Institute (SRI), 29 August 2024