Labour corrects error in Cape Times article

Breakdown of the hospitality sector wages

17 May 2007

Following this week's announcement by Labour Minister Membathisi Mdladlana
about the minimum wages for the hospitality industry workers, the Department of
Labour wishes to point out that the information as reflected in the Cape Times
is absolutely incorrect. The sectoral determination sets only two levels of
wages.

Wages for workers in establishments that employ fewer than 10 workers is set
at R1 480 per month or R7,59 an hour and for those in establishments employing
more than 10 employees, it is R1 650 per month or R8,46 an hour.

The sectoral determination also addresses commission workers and provides
that a worker that is paid on a commission (not tips) basis will at least earn
the minimum wage. It also provides that gratuities (tips) should not form part
of the minimum wage.

The sectoral determination not only sets minimum wages but also provides
improved conditions of employment for workers in the sector.

Under the sectoral determination an across the board percentage increase for
the next three years will be set based on the consumer price index excluding
interest rates on mortgage bonds (CPIX) plus an additional two percent.

Sunday work in the sector will be treated the same way as in the Basic
Conditions of Employment Act (BCEA) which means that Sunday work could be paid
either at 1,5 or double the ordinary rate depending on whether the employee
ordinarily work on a Sunday or not.

Enquiries:
Zolisa Sigabi
Cell: 082 906 3878
E-mail: zolisa.sigabi@labour.gov.za

Issued by: Department of Labour
17 May 2007
Source: Department of Labour (http://www.labour.gov.za/)

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