SAFTU does not welcome Poverty National Minimum Wage Act
The overwhelming majority of workers wiil not be celebrating the signing into law of the Below Poverty National Minimum Wage Act by President Ramaphosa.
The South African Federation of Trade Unions reiterates its view that the minimum level of R20 an hour is far below what anyone should have to live on. It condemns millions of workers and their families to government-sanctioned poverty.
That amount was bad enough when it was first adopted in 2016. More than two years later, when it comes into effect on 1 January 2019, it is worth even less in real terms, after the VAT increase, successive fuel price hikes, the increases in ‘sin taxes’ and the price of food, transport and other goods and services.
Even the President admits that R20 an hour is not a living wage! A Wits University study in 2015 calculated a poverty line that takes the costs-of-basic-needs of South Africans into account in order to link individual wages to household poverty, and derived a threshold definition for the “working poor” of R4 125 in 2015 prices.
At 2018 prices that figure must be nearer R5000 a month, R1500 more than anyone working for a full month on the R20 an hour NMW.