Minimum wage will hold the youth captive – Solidarity

30 May 2018

Trade union Solidarity today pointed out that it is of the opinion that the approved minimum wage would indeed be to the detriment of the youth and the long-term unemployed, and it would mean that those groups would be left out of the labour force for even longer.

According to Morné Malan, a researcher at the Solidarity Research Institute, most of the employed people will not be affected by the legislation; however those who are struggling to enter the labour market as it is, are the very ones who would be affected. “Unemployment among South Africa’s youth, which has been at alarming levels for quite some time, is currently at 52,4% taken according to the narrow definition of unemployment.

This legislation would simply mean that those potential employees, who would be prepared to start at entry level below the minimum wage would now not be able to enter the market, given their current skills level. It would therefore now take even longer for such groups to be accommodated in the labour market, and it is going to take them even longer to gain further experience,” Malan said.

Malan also warned that this decision could arguably not come at a worse moment for the South African economy, given the increase in VAT and rumours about expropriation without compensation, both of which are impeding the economy and hampering foreign confidence.

“It is time government realises that employment creates wealth, not laws,” Malan said.

Issued by Francois Redelinghuys, Spokesperson, Solidarity, 30 May 2018