Sindile Vabaza | An often-overlooked aspect of low wages in South Africa is that workers do not have much labour market mobility or job choice and so employers naturally have the upper hand when negotiating pay
Unions are heavily protected by the Labour Relations Act of 1995. The law gives unions the right to call strikes, during which workers are protected from being dismissed.It enables unions to effectively oppose measures employers might take against non-performing workers, such as teachers who don’t turn up for work or lack basic competencies. It enables unions to prevent necessary retrenchments, such as cutting Eskom’s staff numbers or the civil service wage bill.
The government’s often onerous and sometimes senseless regulations on small businesses also stunt business formation and job creation. This is important to note because the overall benefits of FDI for developing countries’ economies are well documented. Given appropriate host-country policies and a basic level of development, a majority of studies show that FDI triggers technology spillovers, assists human capital formation, contributes to international trade integration, helps create a more competitive business environment, and enhances enterprise development.
In the last almost decade and a half, South Africa has consistently struggled to attract foreign investment due to increasing political and policy uncertainty and wide-ranging corruption and infighting within the ruling party, which has soured investor confidence. There is no solution to low incomes in this country that does not involve fixing long-running structural issues in order to entice foreign investment, and upskilling and educating the labour force.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: Sho Madjozi is back, without missing a beatSouthAfrica's ShoMadjozi general approach to performances involves two tricks: “Practice and preparation'. She also says that crowd interaction is a big part of her live show. By ShingaiDarangwa.
Read more »
Private schools face massive upset in South Africa: reportA legal opinion on the legality of independent curricula and private schools in South Africa is causing an upset, the Sunday Times reports.
Read more »
Second-hand car purchase: how to avoid buying a stolen vehicle in South AfricaBuying a second-hand vehicle comes with unique risks, including the chance that the vehicle may have been stolen or contain stolen parts. This is particularly relevant given the high crime level in South Africa.
Read more »
An expected teacher exodus in South Africa could be a good thingAn unprecedented wave of retirements by educators is foreseen by 2030, just as the pupil population peaks. Unless well managed, this could cause teacher shortages and rising class sizes, writes ClaireBisseker.
Read more »
Red flags for property in South AfricaRecent data from FNB’s latest building confidence index reveals a mixed bag of sentiment across all sectors.
Read more »
Father of the metric system in South Africa diesThe man who led the charge to convert South Africa from pounds, feet, miles, gallons, and morgen to grams, metres, litres, and square metres has passed away.
Read more »