Statement by Minister of Employment and Labour Thulas Nxesi at the launch of the Impimpa Hotline
Greetings and welcome to this important launch of the Impimpa Hotline – designed to strengthen compliance with the National Minimum Wage determination, currently sitting at R20.76 per hour.
It is not a living wage, but it has already improved the conditions of millions of workers, and establishes the principle of a legal minimum wage upon which we can build when the economy improves.
I should mention that minimums for domestic workers and farm workers were initially set slightly lower – but the aim is to align these within two years.
Let me take a step back: since I was appointed by the President to the newly created position of Minister of Employment and Labour, we have given a lot of thought to just how we reconfigure the Department of Labour to focus on employment creation and retention – and not just on issues of regulation. This is what the President required of us in his SoNA speech of June 2019. But that is a story for another day.
The clear message I want to send out today is that as the mandate of the Department expands to include employment, this in no way diminishes the traditional mandate which includes: regulation of the labour market and labour relations to promote decent work, health and safety, employment equity, social security and to carry out the necessary inspection and enforcement to ensure compliance with labour laws.
In terms of compliance with the new National Minimum Wage – introduced in January 2019 - our inspections indicated a high degree of compliance in the more formalised sectors. However, we also picked up complaints of non-compliance in regard to vulnerable workers often in isolated employment environments.
Starting mid-2019, we carried out a series of inspection blitzes in specific sectors and areas, such as farming and small-scale retail. We found non-compliance with the National Minimum Wage Act, as well as failure to enforce the provisions of the Basic Conditions of Employment Act regarding hours worked, leave etc – and in extreme cases near-slave conditions where workers were locked in premises overnight.
My engagement with listeners on a popular phone-in programme recently indicated that there are also problems in sections of the security industry.
Let me hasten to add: we also found model compliant employers in these sectors who were only too happy to work with our inspectors – and as the Department we greatly appreciate the efforts of socially-responsible employers.
The inspection blitzes will continue in sectors with vulnerable workers during 2020 – where we will inspect jointly with the Departments of Home Affairs and Agriculture and Rural Development – the first to deal with non-national illegal workers, the second to deal with land and tenancy problems.
The Impimpa Hotline was envisaged as a tool to assist vulnerable, isolated workers – such as domestic workers - to report non-compliant employers at no cost to themselves. You don’t need data, airtime or a smart phone to use the Hotline.
The software also allows us to monitor sectors and areas where the problems arise. It also allows us to monitor the response time of our inspectors – and we will make this public, so unions, amongst others, will be able to hold us to account. I hope I am not being presumptuous, if I say that unions need to use this as an opportunity to conscientise their members and potential membership as to their basic labour rights.
The amount of the National Minimum Wage was increased on March 1st – in line with CPI (Cost Price Index) – to maintain the value of the minimum rate. Later in the year the National Minimum Wage Commission will publish comprehensive research into the overall impact of the National Minimum Wage on employment, poverty and inequality. There will also be a review of the quantum of the National Minimum Wage. Recent research from Germany, indicates that their National Minimum Wage has actually led to increased productivity – which is in everyone’s interest.
Let me just add: this is not a declaration of war on employers. Without employers, we don’t have jobs. But we do insist on certain basic standards to ensure the dignity, safety and conditions of service of their workers.
Remember, at the top of the list of 7 priorities announced by President Ramaphosa for this Administration was: ‘Economic transformation and job creation’. That must include the continued improvement of conditions of workers wherever they find themselves. As a Department, we remain committed to this vision of transformation in the workplace and creating the conditions for decent work. The Impimpa Hotline will contribute to that.
Question: will this not further contribute to job losses and unemployment?
- There is no conclusive proof – internationally – that legal minimum wages lead to unemployment – whether in Germany, UK or USA. Indeed the period of fastest economic growth and reduction of inequality and poverty in Brazil coincided with a period of increasing legal minimum wages.
- As I said, the National Minimum Wage Commission is carrying out research to see what the impact is in South Africa – so this debate will still continue at that point – when we receive their report.
- Also look at the history of our country: built on a system of cheap black migrant labour – with no labour rights or basic standards. De-regulation will take us back there.
- Again I say that the Department and the inspectorate are not policemen. They are there not to punish employers but to assist them to do the right thing.
Enquiries:
Sabelo Mali
Cell: 082 729 5804
Teboho Thejane
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