The debate over the wisdom of imposing a ‘national minimum wage’ is about to flare up.   It is heartening that Cosatu is proposing to do its own research.   ‘The union movement would conduct its own inquiry into a realistic wage that would help workers achieve a basic standard of living.     While this work has yet to be done, levels being considered on Thursday ranged from R3,000 to R6,000’.   But the focus cannot only be on wages.   There must be a direct relationship between what employers in the private sector receive in return for payment of wages and other benefits.   There are no free lunches.   Government must provide the necessary infrastructure and services to enable work seekers to get a foot on the ladder.   In a highly competitive world employers in the private sector cannot be expected to ‘subsidise’ those first-time work seekers.

Extracts from article first published in Business Day today

Cosatu to research basic wage

By Carol Paton, 15 March 2013, 08:08

THE Congress of South African Trade Unions (Cosatu), set to adopt a formal policy on a national minimum wage at its national bargaining conference on Friday, says the R4,500 level being mentioned is “ideal” and it will not decide on the matter without careful research.

A pragmatic engagement by Cosatu on a minimum wage could help employers and the government to mitigate conflict over wages and working conditions.

Cosatu strategy co-ordinator Neil Coleman told the conference on Thursday that a realisable minimum wage level should be determined by a tripartite body which would also include independent experts such as the Employment Conditions Commission.     The commission sets wages for sectors where there are no bargaining councils — such as agriculture.     It is chaired by an independent academic and has representatives from business and labour.

. . . .

As Statistics South Africa data says half of all employed people earn less than R3,000, setting the national minimum wage at this level would vastly improve the situation of half of all workers.   Cosatu is also keen to emulate the Brazilian model where minimum wages are about R3,000.

The national minimum wage would set a floor over which collective bargaining arrangements would aim to improve wages and conditions.   Cosatu envisages this happening at a sectoral level within industries.   In its model, sectoral determinations would fall away and actual wage levels would be set through centralised bargaining.

Mr Coleman said that while national minimum wages are not popular with the business community, adopting one “would create a structural way of transforming the wage structure rather than the chaotic events we are witnessing now”.

. . . .

International Labour Organisation senior economist Patrick Belser also addressed the conference on Thursday, advocating a national minimum wage as an instrument to “help ensure that the benefits of growth are shared with those at the bottom of the distribution pile”.

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