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The Department of Labour began national public hearings and on-site visits as part of an effort to review the minimum wages and employment conditions in the Hospitality Sector.

The Hospitality Sector’s three-year Sectoral Determination comes to an end on 30 June 2016. The Sectoral Determination spells out minimum wages, number of leave days, working hours and termination rules among other conditions of employment.

The very first of the series of these hearings was held in Bloemfontein yesterday with the second one being held in Bethlehem today.  Stakeholders came in their numbers to get first-hand information on issues pertaining minimum wages and also to advise the Minister of Labour on where wages should be pegged for the next three years. 

Constituted by labour unions, employers and employer representatives in the sector, these hearings had robust interaction with notable inputs being made by attendees.

Tshidi Khanuka from the National Security Commercial and General Workers Union (NASECGWU) advised that the Department of Labour should scrap the “number of employees in an establishment” as one of the determinates of wages. “We have observed and realised that there are instances were smaller establishments would generate more profit compared to their bigger counterparts, thus we believe that the number of employees should play no role in determining their salaries as they have got no influence whatsoever on the profit margins of the business,” Ms Khanuka further explained.

“In addition to what my colleague has just said, determining salaries in terms of the number of employees on the establishment also leads to retrenchments as employers would rather lay-off their staff than to increase their salaries as prescribed by the sectoral determination,” added Macdonald Mkgabane from the union called Hotelica.

In terms of the minimum wages for employees in the Hospitality Sector, for the period 1 July 2015 to 30 June 2016 for establishments with 10 or less employees the current minimum wage is: (R2 760,59) monthly; (R637,10) weekly; (R14,15) hourly).

For those employers with more than 10 employees the minimum wage for the period 1 July 2015 to 30 June 2016 is: (R3 076,98) monthly; (R710,12) weekly; and (R15,77) hourly.

Shaun Feldman who is the Deputy Director for Employment Standards in the department highlighted one critical element which both employers and unions need to take into consideration as they make inputs on wages.  “The Sectoral Determination (SD) on Hospitality Industry is the only SD which makes provisions for transportation of employees.  In instances where employees are paying more than the normal rates for transport due to them working irregular hours, then the employer should cover the difference between normal and up-normal rates charged,” reiterated Mr Feldman.

The Sectoral Determination in Hospitality Sector covers any commercial business or part of a commercial business in which employers and workers are associated for the purpose of carrying on or conducting one or more of the following activities for reward in a hotel, motel, inn, resort, game lodge, hostel, guest house, guest farm or bed and breakfast establishment including short stay accommodation, self-catering, timeshares, camps, and caravan parks.

It also includes restaurants, pubs, taverns, cafés, tearooms, coffee shops, fast food outlets, snack bars, industrial or commercial caterers, function caterers, contract caterers and includes all activities or operations incidental to or subsequent on any of the activities mentioned above.

The Hospitality Sector sectoral determination excludes workers and employers involved in the trade of letting of flats, rooms and/or houses. It also excludes all workers and employers covered by another sectoral determination in terms of the Basic Conditions of Employment Act. It further excludes areas that are covered by a Statutory Council or a Bargaining Council.

Issued by Department of Labour