‘National’ Minimum Wage-Setting in South Africa

dc.contributor.authorSeekings, Jeremy
dc.contributor.authorNattrass, Nicoli
dc.date.accessioned2016-08-29T08:48:13Z
dc.date.available2016-08-29T08:48:13Z
dc.date.issued2015-09
dc.description.abstractIn 2014-15 the South African Government began to consider seriously proposals from the trade union federation COSATU that a uniform, ‘national’ minimum wage be set at a level several times higher than the lowest sectoral minimum wages set hitherto. The suggestion that a national minimum be set is hardly controversial, given that the state already regulates the wages of most low-paid workers and has the statutory power to regulate any that fall outside of the current sectoral mechanisms. What is controversial is the level at which a national minimum should be set, and the procedures for setting it. COSATU argues that a high national minimum is in line with international norms and would not have negative effects on employment. We show that South Africa’s existing sectoral minima are in fact broadly in line with international norms and that COSATU’s proposal is far out of line with them. We show also that both international and South African evidence suggests that COSATU’s proposed high national minimum would cause job destruction directly without any compensatory macro-economic boost to employment. We conclude that a high national minimum wage would be likely to worsen poverty and inequality, and suggest that expanded tax-financed social assistance and job creation programmes combined with South Africa’s existing sectoral minimum wages would be more effective ways of addressing poverty and inequality.en_ZA
dc.identifier.apacitationSeekings, J., & Nattrass, N. (2015). <i>‘National’ Minimum Wage-Setting in South Africa</i> University of Cape Town ,Faculty of Humanities ,Centre for Social Science Research(CSSR). Retrieved from http://hdl.handle.net/11427/21576en_ZA
dc.identifier.chicagocitationSeekings, Jeremy, and Nicoli Nattrass <i>‘National’ Minimum Wage-Setting in South Africa.</i> University of Cape Town ,Faculty of Humanities ,Centre for Social Science Research(CSSR), 2015. http://hdl.handle.net/11427/21576en_ZA
dc.identifier.citationSeekings, J. & Nattrass, N. (2015). ‘National’ Minimum Wage-Setting in South Africa. CSSR Working Paper No. 362. Centre for Social Science Research, University of Cape Town.en_ZA
dc.identifier.isbn978-1-77011-349-7en_ZA
dc.identifier.ris TY - Working Paper AU - Seekings, Jeremy AU - Nattrass, Nicoli AB - In 2014-15 the South African Government began to consider seriously proposals from the trade union federation COSATU that a uniform, ‘national’ minimum wage be set at a level several times higher than the lowest sectoral minimum wages set hitherto. The suggestion that a national minimum be set is hardly controversial, given that the state already regulates the wages of most low-paid workers and has the statutory power to regulate any that fall outside of the current sectoral mechanisms. What is controversial is the level at which a national minimum should be set, and the procedures for setting it. COSATU argues that a high national minimum is in line with international norms and would not have negative effects on employment. We show that South Africa’s existing sectoral minima are in fact broadly in line with international norms and that COSATU’s proposal is far out of line with them. We show also that both international and South African evidence suggests that COSATU’s proposed high national minimum would cause job destruction directly without any compensatory macro-economic boost to employment. We conclude that a high national minimum wage would be likely to worsen poverty and inequality, and suggest that expanded tax-financed social assistance and job creation programmes combined with South Africa’s existing sectoral minimum wages would be more effective ways of addressing poverty and inequality. DA - 2015-09 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2015 SM - 978-1-77011-349-7 T1 - ‘National’ Minimum Wage-Setting in South Africa TI - ‘National’ Minimum Wage-Setting in South Africa UR - http://hdl.handle.net/11427/21576 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/21576
dc.identifier.vancouvercitationSeekings J, Nattrass N. ‘National’ Minimum Wage-Setting in South Africa. 2015 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/21576en_ZA
dc.languageengen_ZA
dc.publisher.departmentCentre for Social Science Research(CSSR)en_ZA
dc.publisher.facultyFaculty of Humanitiesen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.rightsCreative Commons Attribution 4.0 International (CC BY 4.0)*
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en_ZA
dc.title‘National’ Minimum Wage-Setting in South Africaen_ZA
dc.typeWorking Paperen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceWorking paperen_ZA
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