Labour law expert Michael Bagraim has raised concern over the impact of the new minimum wage.
Having a minimum wage in South Africa is a careful balancing act that could lead to an increase in the unemployment queue if not managed properly, says Michael Bagraim from Bagraim Attorneys., Bagraim said that there still are thousands of workers earning below the minimum wage, and even some trade unions are avoiding approaching employers to ask for the regulated increase out of fear of being retrenched.
“Unlike the rest of the world, we have a duty to create as much employment as possible and not so much the duty to push up the wages in the sense that it is going to backfire and create more unemployment.” We need to relook at the situation of labour law and, as a Department of Employment and Labour, instead of having a blanket minimum wage, have an inspector to take into account individual businesses’ financial standings and provide exemptions for a period of time.
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