South Africa is to exchange practical experiences with Germany on the introduction of the national minimum wage, this following a visit by a German delegation into South Africa.

Labour Deputy Minister, Nkosi Phathekile Holomisa told a meeting in Pretoria today, that following the eight Germany-South Africa Binational Commission (BNC), there have been encouraging bilateral engagements on a number of issues including extension of social benefits.

Holomisa said the latest engagement with the Germans would help the department seek guidance on German experiences, who are on the verge of implementing national minimum wage next year.

South Africa under the stewardship of Deputy President Cyril Ramaphosa is engaged in a social dialogue that will culminate in the introduction of a national minimum wage. A report in terms of the “Ekurhuleni Declaration” on the modalities of its implementation is expected to be finalised by July 2015.

Germany’s Permanent State Secretary Thorben Albrecht said the legislation to guide the implementation of national minimum wage back home would begin at the beginning of next year. Albrecht said the introduction of this legislation has been in the making for the past seven years. He said there has been a thorough engagements among social partners in the labour market.

“Germany is now one of 22 countries in the European Union (EU) implementing the national minimum wage out of 27 member countries. Minimum wage in the EU is now a rule, rather than an exception,” Albrecht said the idea of minimum wage was initially seen as unwelcome government interference, however, this attitude has changed in last 25 years because of globalisation, the changing in the landscape of economic structure from manufacturing to service sectors.

He said the German process leading to introduction of minimum wage derives its genesis from sector based wage determinations introduced in the 1990s. He said there was a strong public support for the introduction of national minimum wage with 86 percent of electorate saying “this was a good thing”.

According to Albrecht the national minimum wage regime in Germany would extend to all sectors and regions, but in a phased approach in respect of existing collective agreements. He said in Germany a Commission to oversee the implementation of the national minimum wage, composed of all social partners under the guidance of a neutral president has been put in place so as to avoid political expediency.

Albrecht said the first few months would be critical to monitor the roll-out and implementation of the national minimum wage. He said Germany does not expect major job losses, “the implementation of national minimum wage will be an eye-opening experience”.

He said Germany was planning to use the introduction of national minimum wage to strengthen collective bargaining, and improve the living standards of employees, especially in the former East Germany where levels of productivity were still lagging.

South Africa plans to host a joint conference to thoroughly engage with Germany on making workplaces accessible, increasing the employability of people with disability and development of guidance services for people with disability next year.

Today’s talk focused on national minimum wage, inclusion of blacks, women, youth and people with disabilities in the labour market and review progress on the BNC agreement. It was agreed that further in-depth, technical discussions and exchange of information should be undertaken as SA is currently working on the proposal to establish a national minimum wage.

 

Issued by Department of labour