Retrenching workers in anticipation of the impact the national minimum wage would have once implemented is displaying negativity, the Portfolio Committee on Labour heard on Thursday.
The Director-General, Mr Thobile Lamati, said the department is willing to sit down with any business which has a view that it would not afford the national minimum wage.
“If businesses have started retrenching in anticipation of what is to come, their display is negative. To retrench for something that has not even started is counter-productive. We expect business people to be good cooperate citizens, and we are prepared to assist wherever there are challenges,” Mr Lamati said.
He accompanied Productivity SA and the Unemployment Insurance Fund to Parliament where they presented their annual performance plans and strategic plans in line with the budget review process.
The budget reviewing started on Tuesday and all government departments and the entities they administer are expected to come and account to Parliament.
Committee member, Mr Michael Bagraim, asked if Productivity SA was prepared for the likely impact the minimum wage might have on the job market.
“Businesses will have to retrench. How will you address this big conundrum that will face us next year when the national minimum wage is implemented?” he asked.
He said it was not clear what Productivity SA was doing to retain jobs.
Members of the Committee sought clarification on such issues as decent employment, whether workplace forums were still viable, and why it took so long for entities to fill vacancies.
Committee member, Ms Fezeka Loliwe, wanted to know about the expansion plans of the entity.
“We had thought the plans would reflect an intention of expansion, but now we are getting a sense that there is no intention to get to other provinces, what is your long-term plan?” Ms Loliwe asked.
Productivity SA representative, Ms Rebecca Phalatse, said the entity had regional offices in Durban, Bloemfontein, Cape Town and Johannesburg. “The Durban office caters for Eastern Cape, KwaZulu-Natal and Mpumalanga, while the Johannesburg office caters for Limpopo and the North West. Although the entity does not have offices, it is accommodated through the partnerships it has with government departments and other entities,” she said.
She defined decent employment as a situation where employees shared in the gains that businesses make.
“You could be employed and still be poor. We encourage the sharing of gains with employees. Often employers give themselves all the perks and yet they want to retrench. We are saying this cannot be possible, let people be employed and share in the gains companies make,” she said.
The Chairperson, Ms Lumka Yengeni, noted that a trend in all of the presentations was that entities were revising targets downwards.
“We will not praise delivery in that case, it is important that entities know that service delivery is their core business,” she said.
By Sibongile Maputi
4 May 2017
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