Welcome to the next edition of the Labour Newsflash.
As always, labour law is never boring and the current labour system has a number of matters highlighting the scene and those that are playing in the background but no doubt will have an impact on your business once they are implemented.Strikes have or are occurring across various sectors with various negotiations reaching a deadlock as Wage deals become more difficult to achieve due to, amongst other factors, the current economic conditions. Added to this, disciplinary enquiries are often more challenging due to technical points being raised by parties and the Court system being flooded with attempts to intervene in internal process. As illustrated by the attached case law, the Courts have taken a tough stand and will not intervene or take kindly to these shenanigans.
Playing in the background to the hostilities are three key matters which will impact your business or the economy in the near future:
- National Minimum Wage: Business Day has reported that seven economists have been appointed to set the country’s minimum wage. The panel, appointed by Deputy President Cyril Ramaphosa, held meetings with National Economic Development and Labour Council (Nedlac) constituents to receive input on a minimum wage floor. The panel is expected to announce a floor in two months. The report quotes Nedlac spokesperson Kim Jurgensen as saying the panel had met with constituents to establish positions and what informed them. More meetings were scheduled for coming weeks. The panel’s job is not to do any new research, but to advise government on which of the research to accept.
- Also under discussion is the Employee Tax Incentive (ETI). The process is aimed at whether same will be maintained, the form that it will take, its application and mechanism.
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