Labour on wage increase for wholesale and retail workers

New wage increase for wholesale and retail workers

25 January 2006

Workers in the wholesale and retail sectors can expect an increase to their
current minimum wages when the new rates come into effect from 1 February
2006.

In terms of the new sectoral determination, the minimum wage for sales
assistants in urban areas will be R2 289.30 per month, while their counterparts
in peri-urban areas will get R1 860.30, and in rural areas the minimum will be
R1 719.90 per month.

The determination also prescribes a slightly higher hourly rate for
employees who work 27 hours per week or less, and this is included in the
revised wages.

Announcing the new determination, Labour Minister Membathisi Mdladlana said
yesterday he was aware the latter category of workers formed the bulk of the
still highly exploited workforce, with working hours not guaranteed despite the
lack of job security and the rising cost of living.

“We have exercised caution when setting an increase in the minimum wages for
this category of workers.

“Since it is difficult to fix hours of work for this category of workers,
the other viable form of protection was to peg the hourly wages of these
workers at a level higher than those of other workers,” the Minister said.

This is illustrated by the fact that the minimum hourly rate of a shop
assistant working 45 hours per week in an urban area is R9.29, while an hourly
rate of a shop assistant working 27 hours per week or less is pegged at
R9.64.

No changes have been made in relation to working hours. The working hours
provided for by the Sectoral Determination are flexible and suit the nature of
business requirements.

It provides for sufficient trade offs and workers are not disadvantaged as
they have a choice to work shorter hours (40 per week) but in exchange have to
work three Sundays per month.

Enquiries:
Mokgadi Pela
Cell: 082 808 2168

Issued by: Department of Labour
25 January 2006

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