Thread by @NeilColemanSA

Is the #NationalMinimumWage which comes into effect on 1 January a victory or a defeat for workers? I try to answer this question in the thread below
@Cosatu @Zwelinzima1 @CyrilRamaphosa @GiladIsaacs @iValodia @Dennis_G1 @SAFTU_media

How many workers will benefit from the #NMW? According to research by @SA_NMW around *4 million workers* are earning <R20 p/h. This is a significant no. - over one third of the formal workforce. The widely quoted figure of 6,4 million isn't accurate, & reflects 2016 estimates.

Nevertheless a high proportion of workers in SA will benefit from the #NationalMinimumWage by international standards. According to the @SA_NMW the following fell below the NMW: in 16 Latin American countries most were below 15%. In the UK, 5%. Germany, 7% Malaysia, 15%.

The #NMW will be R20p/h or R3500 p/m for a 40 hr week, and R3900 p/m for a 45 hr week. While improving wages for millions, this is way below the *Minimum Living Level*- a package of absolute basics for a family of 4- of around *R6000 p/m* in 2018. By this standard the NMW is low.

The #NMW is also low as a proportion of the NationalAverageWage. The ratio of the NMW: average wage in middle income countries is 48%. The ratio of the NMW in SA is around 34%.To be 48% of the average wage, the NMW would have had to be set at well over R5000 p/m, or over R30 p/h

The 2017 #NMW agreement provides the NMWCommission must set a *MediumTermTarget* to progressively improve the NMW, using internationally recognised benchmarks. If the *MLL* & NMW: average wage ratio are used, this requires substantial, rapid improvement in the NMW level.

The #NMW Act doesn't fully incorporate the agreement on the MediumTermTarget to progressively improve the NMW. Nevertheless the unions & community can push for its implementation by the NMW Commission.

The Act is very unclear on the #NMW Commissions ability to review and update #SectoralDeterminations. This means even if the NMW improves, improvement in conditions in some SDs could begin to lag behind.

There are a significant number of issues on which there is continued contestation, or where the final Bills failed to incorporate the agreements reached by the social partners in February 2017, or failed to adequately resolve disputes. These are summarised in these slides 👇

Conclusion:the #NMW represents an advance for workers, but significant challenges & unresolved issues remain. Trade unions &community org.ns should close ranks to mobilise around using the #NMW as a platform to achieve a decent #NMW as part of the broader living wage struggle.

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