JOHANNESBURG - The National Employers' Association of South Africa (NEASA) say the minimum wage at any level serves no purpose when there are no jobs to be had.
This week, the Department of Employment and Labour published the latest adjustments to the national minimum wage. Salaries for employees not regulated by the Bargaining Council agreements have been set at R30,23 an hour from 1 March.
The Association’s Gerhard Papenfus said entrepreneurs who earned small salaries themselves do not afford to implement the adjustment. He said the minimum wage was a barrier to work.
“There are millions who are denied access to the labour market because what this means is, unless you can find an employer that can and wants to pay you R5,000, you’re not getting a job, and you can’t negotiate.”
He said the adjustment will not help fix the current youth unemployment rates.
“It’s irresponsible for a government to interfere and not allow market powers to dictate. Employers compete based on good employees; that’s the market power.”