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Friday, November 15, 2019

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FSA Submissions : FSA’s submission to DoL & the portfolio committee on labour on the National Minimum Wage Bill

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FSA's submission to DoL & the portfolio committee on labour on the National Minimum Wage Bill


Please find attached for your information our Submission on the National Minimum Wage Bill.

The Submission provides a detailed analysis of our views on the implementation of the NMW, motivations for changes thereto and recommendations.

In brief, the following are the main recommendations that we have made:

  • The implementation of the NMW be put on hold until the economic environment improves to an extent whereby the unintended consequences thereof will be minimised.
  • Whenever the NMW is implemented, the phasing in period (currently 90% of wage in May 2018, moving to 100% of the wage in May 2019) be extended over a minimum period of three years.
  • The deductions currently allowable in terms of the Sectoral Determination vis à vis the provision of accommodation (max 10% of wage), food (max 10% of wage), repayment of loans and credit extended to workers and deductions that an employer is required to make in terms of a Court or arbitration award, be provided for in the NMW regulations.
  • The annual review of the newly established NMW Commission include the impact of the NMW of employment levels and that representation thereof include those who can speak on behalf of the unemployed.
  • The exemption process be made considerably easier and allow for non "employers' organisations", such as FSA, to apply for "blanket exemptions.
  • The definition of "farm worker" be extended to include workers working in "on site" primary forestry processing facilities (e.g. sawmills, mining timber mills, pole treating plants and charcoal plants).  This will allow their wages to be set at the same level as those currently applicable to "forestry workers" working in plantations.  

Submission on National Minimum Wage

Roger Godsmark
Operations Director
Forestry South Africa
Tel:+27 33 346 0344
Fax: +27 33 346 0399
E-mail: roger@forestrysouthafrica.co.za

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