President Cyril Ramaphosa has signed the National Minimum Wage Bill‚ which is expected to benefit about six million workers who currently earn below R3‚700 a month when it comes into effect on January 1 2019.
Business Day understands that the president enacted four labour bills on Friday following heightened pressure by union federation Cosatu to finalise the legislation‚ especially the minimum wage bill‚ which Cosatu considers a victory after campaigning for it for years.
Critics have warned that the law may lead to job cuts in an economy that is already struggling with unemployment of more than 27%.
The minimum wage law‚ which was formulated at the National Economic Development and Labour Council (Nedlac)‚ has been in the works since 2015‚ with parties agreeing to set the minimum hourly wage rate of R20 in 2017.
Its initial implementation date was pushed from May 1 following a series of blunders during the bill’s drafting period.
In its initial response to the proposals‚ the National Treasury warned that introduction of the system would affect jobs and the economy in the long-term if it were to be implemented recklessly.
In addition to the minimum wage bill‚ Ramaphosa signed three other labour bills‚ including the Labour Laws Amendment Bill‚ which will enable the implementation of the Unemployment Insurance Fund (UIF) Act‚ and which extends a variety of benefits to retrenched workers; as well as amendments to the Basic Conditions of Employment Act‚ which will introduce various changes‚ including parental and adoption leave.
The president has also signed the Labour Relations Amendment Bill‚ which makes way for the establishment of an advisory arbitration panel to deal with long and violent strike action in the interest of labour stability.
However‚ it is the signing of the long-awaited minimum wage legislation‚ dubbed the most progressive labour law under the democratic dispensation‚ which has pleased organised labour.
Last week‚ the presidency told Business Day that the signing was “imminent” – BusinessLive..