National Minimum Wage Amendment Bill: finalisation

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Employment and Labour

18 March 2019
Chairperson: Mr B Mashile (ANC)
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Meeting Summary

The Committee met to finalise the National Minimum Wage (NMW) Bill. The proposed amendments were technical, not substantive. The amendments sought to correct the cross-referencing: Section 17(4) was supposed to refer to Section 4(8) of the Bill. The Committee had invited public submissions on the amendments, and five written submissions were received before closing date.

COSATU wanted the Committee to ensure the insertion of the clauses requested by the Commission for Conciliation, Mediation and Arbitration (CCMA) to make its judgement on the NMW binding and not appealable to the Labour Court as this has the effect of dragging on such matters to the unaffordable detriment of workers. The CCMA had raised these during the NCOP NMW Bill public hearings. The Commission for Gender Equality (CGE) recommended that the funding model of the Department of Social Development be included in the Amendment Bill and be aligned with the Bill to enable the offering of subsidies to care for workers that are not below the NMW. Black First Land First (BLF) proposed the NMW of R25 per hour. Mr Elcort Matlala submitted that the Bill must include tougher penalties for non-compliance to the NMW by employers. The Independent Municipal and Allied Trade Unions (IMATU) proposed that Schedule 1, Section 2(c) should be amended such that it should read that workers employed on an expanded public works programme are entitled to a minimum wage of R11.54, not R11.  

Members said the issues raised in the written submissions were important but could not be traversed during the current parliamentary term. The Committee secretariat should ensure that these are discussed by the next Committee during the sixth term. On the basis of the written submissions, the Committee would not need to call for oral submissions on the Bill.

The Parliamentary Legal Advisor said most of the written submissions received by the Committee emphasised the need for a NMW but none addressed the amendments as advertised, save for COSATU that called for the speedily finalisation of the Bill. The other submissions proposed further amendments. He agreed that the Bill is consistent with the Constitution and existing legislation and is properly drafted in a style and form prescribed by legislative practices. The only outstanding matter was the final tagging of the Bill by the joint tagging mechanism. This would hopefully be finalised by the next day.

The NMW Bill was unaadopted unanimously with no changes.

On the Report on the NMW Bill, the Committee having initiated the NMW Amendment Bill, envisaged that the amendment should be effected through the substitution of section 17(4) of the Act with a new subsection which reflects the correct cross-reference, namely Section 4(8). Having considered the subject of the NMW Bill, the Committee recommended that House adopt the report and approve the second reading of the Bill as introduced.

The Report on the NMW Bill was adopted unanimously.

Meeting report

The Chairperson welcomed everyone to the finalisation of the National Minimum Wage (NMW) Bill. The proposed administrative amendments should be finalised so that the Bill is sent to the National Assembly for consideration before Parliament rises. The proposed amendments were technical, not substantive. The amendments sought to correct the cross-referencing: Section 17(4) was supposed to refer to Section 4(8) of the Bill. The Committee had invited public submissions on the amendments, and five written submissions were received before closing date. He invited the Content Advisor to highlight the contents of the public submissions.

Presentation by Content Advisor
The Committee Content Advisor stated that the Committee received five written submissions on the proposed amendment to the NMW Bill.

COSATU wanted the Committee to ensure the insertion of the clauses requested by the Commission for Conciliation, Mediation and Arbitration (CCMA) to make its judgement on the NMW binding and not appealable to the Labour Court as this has the effect of dragging on such matters to the unaffordable detriment of workers. The CCMA had raised these during the NCOP NMW Bill public hearings.

The Commission for Gender Equality (CGE) recommended that the funding model of the Department of Social Development be included in the Amendment Bill and be aligned with the Bill to enable the offering of subsidies to care for workers that are not below the NMW.

Black First Land First (BLF) proposed a NMW of R25 per hour.

Mr Elcort Matlala submitted that the Bill must include tougher penalties for non-compliance to the NMW by employers.

The Independent Municipal and Allied Trade Unions (IMATU) proposed that Schedule 1, Section 2(c) should be amended such that it should read that workers employed on an expanded public works programme are entitled to a minimum wage of R11.54, not R11.  

Discussion
Mr M Bagraim (DA) noted that in essence none of the written submissions spoke to the proposed amendment to the cross-references as tabled before the Committee. He suggested that the Committee not deliberate on the submissions but rather go straight to the Legal Advisor’s input as per the agenda.

Ms S van Schalkwyk (ANC) pointed out it was only the submission from COSATU that was relevant and spoke directly to the matter before Committee.

The Chairperson said the issues raised in the written submissions were important but could not be traversed during the current parliamentary term. The Committee secretariat should ensure that these are discussed by the next Committee during the sixth term. He invited input from the Legal Advisor and the Department.

Input by Legal Advisor
Mr Michael Prince, Parliamentary Legal Advisor, said most of the written submissions received by the Committee emphasised the need for a NMW but none addressed the amendments as advertised, save for COSATU that called for the speedily finalisation of the Bill. The other submissions proposed further amendments. He agreed that the Bill is consistent with the Constitution and existing legislation and is properly drafted in a style and form prescribed by legislative practices. The only outstanding matter was the final tagging of the Bill by the joint tagging mechanism. This would hopefully be finalised by the next day. 

Input by the Department
Mr Tembinkosi Mkhaliphi, DDG, Department of Labour, said the Department could confirm that the proposals as tabled before the Committee were discussed by NEDLAC and the Council was in support of the Bill. NEDLAC would furnish its report to the Committee in due course. The Department noted that the people and organisations that gave written submissions had not touched on the proposed amendments, except for COSATU. If there were any matters arising subsequently, the Department would provide clarity moving forward.

Discussion
Ms van Schalkwyk welcomed the inputs and indicated the Committee should move forward with finalising the Bill. Based on what had been said, the Committee would not need to call for oral submissions on the Bill. It was safe to say the Bill could be finalised.

The Chairperson noted that the submissions were in support of the Bill both directly and by implication. He took the Committee through the Bill clause by clause.

There were no objections from Members

Voting on NMW Bill

The Chairperson put the Bill up for adoption as is.

Ms van Schalkwyk moved.

Mr Bagraim seconded.

The NMW Bill was adopted as is.

Report on the NMW Bill
The Chairperson highlighted the contents of the Committee Report on the NMW Bill. The Committee having initiated the NMW Amendment Bill, envisaged that the amendment should be effected through the substitution of section 17(4) of the Act with a new subsection which reflects the correct cross-reference, namely Section 4(8). Having considered the subject of the NMW Bill, the Committee recommended that House adopt the report and approve the second reading of the Bill as introduced. He put the report up for adoption.

Mr Bagraim moved.

Ms L Theko (ANC) seconded.

The Report on the NMW Bill was adopted.

Adoption of minutes
The Chairperson put the minutes of the 13 March 2019 meeting up for adoption.

The minutes were adopted.

The Chairperson thanked everyone and adjourned the meeting.  

 

Present

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