JOHANNESBURG, November 22 (ANA) – Business Unity South Africa (BUSA) on Tuesday said it would need to consult diligently with its members to understand the potential impact of the recommended R3,500 national minimum wage on different sectors and types of businesses.
In a statement, BUSA said it needed to closely interrogate the report in relation to the wage and employment trade-off.
The National Economic Development and Labour Council (Nedlac) Advisory Panel on Sunday proposed a new national minimum wage rate of R20 an hour, or about R3,500 a month.
BUSA said it would carefully consider the shared interests of South Africa as a country in addressing poverty, and inequality, without compromising employment given tough economic conditions.
“It is important to remember that the minimum wage initiative is one mechanism among several to reduce poverty and inequality and that employment is the best mechanism to address this,” BUSA said.
“BUSA aims to provide a comprehensive response on the report at the next Nedlac’s Committee of Principals meeting. BUSA thanks the panel for the valuable work conducted, it has provided greater clarity on the issues and platform for deliberations on the way forward.”
Nedlac’s proposed monthly minimum wage of R3,500 has elicited a mixed reaction from trade unions and political parties.
But BUSA said it was pleased with the progress on labour relations stability and the manner in which constituencies had earnestly engaged on the issues in Nedlac.
“The submissions on labour relations stability have gone for final revisions and will be resubmitted for final approval by the Committee of Principals,” BUSA said.
“Business welcomes the significant progress made between social partners to address prolonged and violent strike action, without undermining the right to strike. This will go a long way towards securing a more stable labour relations environment.”
BUSA said it was committed to the quest for economic justice and inclusive growth.
– African News Agency (ANA)
