Issued by the Department of Labour
July 10, 2001
A much-awaited day has arrived. Today we are releasing the results of our investigation into setting minimum wages and conditions of employment for domestic workers.
This process has taken us a long time. Unfortunately it takes a long time to unravel the legacy of apartheid and enable domestic workers to be recognised and rewarded as all other workers. And as I will explain later, this is not the end of the process. To ensure maximum consultation with the people affected by our actions, we are releasing the results of our investigation and proposals for public comment, before we finalise minimum wages and conditions of employment.
Background
Apartheid labour laws did not cover domestic workers. Domestic workers were either regarded in some paternalistic way as 'part of the family' or were invisible. They were not seen nor heard and effectively remained rightless and powerless.
Since 1994 we have been working to include domestic workers in all our laws. Since 1996, domestic workers have been covered by the Labour Relations Act and have had access to the CCMA where they have been able to contest unfair dismissal and other unfair labour practices. Approximately 9% of all disputes heard at the CCMA are referred by domestic workers.
In terms of our skills development strategy a home for domestic workers have been found under the cleaning chamber of the services SETA. A process is underway to determine the training needs of domestic workers and ensure that they get access to training in the same way as other workers.
Domestic workers are to be included in the new Unemployment Insurance Bill presently before Parliament. We are continuing to work with non-governmental organisations and others to ensure that the administrative obstacles facing their inclusion are overcome.
When we promulgated the Basic Conditions of Employment Act in December 1998, we made it possible for the first time to set minimum wages and working conditions for domestic workers. This Act makes provision for the Minister of Labour, to establish a Sectoral Determination after being advised by the Employment Conditions Commission (ECC).
Thus in May 1999, I announced my intention to embark upon a process of setting minimum wages and conditions for both farm and domestic workers. Relevant notices were published in the Government Gazette and members of the public were asked to give comment. In terms of the law, an investigation has to be conducted by the Department prior to any form of wage setting is implemented. The report of this investigation is then given to the ECC who advises me.
However, due to the highly sensitive nature of the domestic worker investigation, we have decided to introduce another step in the process. We are releasing the results of this investigation to the public for their comment. During the investigation we asked the public to share with us their initial views on the domestic sector.
Now we are calling on members of the public to comment on our report and recommendations, as a result of our investigation. Today we are releasing the report on the investigation and our recommendations in respect of domestic workers. This will be followed shortly by the same in respect of farm workers.
Ladies and gentlemen, it has taken us up to 18 months to conduct this investigation. It has been a long time. But, I am convinced that the time spent was worthwhile and we have emerged with the best possible information on which to have informed discussion and debate.
We conducted 64 public hearings all around the country reaching out to large numbers of domestic workers and employers. We received 114 written representations while at the same time we conducted two surveys reaching over 300 employers and 4 000 domestic workers. We looked at the international situation and contracted economists to analyse the economic impact of minimum wage setting.
What does the report tell us?
Firstly, it reminds all of us of the critical and valuable work that domestic workers do in our society. Not only did domestic workers raise millions of South Africans, but also contributed significantly in economic terms. Domestic workers enabled, particularly women, to leave their homes and work, thus contributing to economic growth.
Secondly, it gives us an overall picture of domestic work in South Africa, including facts and figures. There were approximately 800 000 domestic workers in 1999 which constitutes about 18% of all people employed in the labour market. Domestic work includes cleaning, caring for the young and the aged, gardening and chauffeuring. Approximately 36% of domestic workers 'live in'.
Thirdly, it tells us about the conditions under which domestic workers live. It paints a picture of long hours, heavy workloads, high levels of control, regimented lifestyles, lack of privacy and high levels of job insecurity and powerlessness.
Fourthly, the report also tells us that domestic workers earn low wages. The national mean monthly wage for domestic worker is R 598 while median wage is R 524 1 . However, there are significant wage differentials between urban and rural domestic workers. The urban median is R 588 while the rural median is R 409, almost a R 200 difference.
The report also tells us that low wages are not supplemented by more benefits such as accommodation, food and so on. In fact the opposite is the case.
Finally, the report looked at the implications on employment levels in the event of the introduction of certain minimum wages. While it is very difficult to use econometric models for this sector, the models show very importantly that the higher a minimum wage is set, the more likely there are to be job losses.
The models tried to estimate the number of workers that would be affected if different minimum wages are set. For example, a minimum wage of R400 set for rural areas would affect about 45% of rural domestic workers. In other words about 45% of domestic workers in rural areas earn less than R400 a month. Similarly about 38% of urban workers earn under R500 per month.
On the basis of the findings, the Department has made a number of recommendations in respect of minimum wages and conditions of employment. I will try and spell below the Department's reasoning in making its recommendations.
The Department took as its starting point the commitment I made in my 15 point programme in 1999:
"The state carries the responsibility of protecting vulnerable workers to ensure that they have the same basic rights and are afforded their dignity. The BCEA is the principle instrument through which such protection is extended. In the coming period we shall focus on its effective and appropriate implementation bearing in mind the [se] requirements to seek a balance between security and flexibility".
The key concern of the Department is to balance the alleviation of poverty with the retention or creation of employment opportunities for domestic workers. We were constantly aware that our proposals should not contribute to the ever-increasing unemployment pool and should address the levels of poverty within the domestic sector. Therefore, our first priority is to protect jobs and thereafter enhance them by improving basic employment conditions.
With this in mind, we have developed five recommendations in respect of minimum wages:
One of the report's recommendations is that employers and domestic workers should be given adequate notice before the minimum wages and conditions come into effect. It is proposed that the wages should only come into effect three months after the sectoral determination is published.
We believe that these proposals will ensure that those domestic workers, who are the worst off, will benefit. As government our mandate is to protect vulnerable workers and to ensure that the policies we put in place do not create greater adversity for them. It is less likely that they will loose their jobs and more likely that their livelihoods will improve.
I also regard these proposals on minimum wages and conditions as only one component of a broader strategy of the Department of Labour and government as a whole to improve the position of vulnerable workers like domestics.
In the Department, other components include improving and recognising the skills of domestic workers as part of our skills development strategy and improving their access to social security. And then, policies of government as a whole for example to provide a certain amount of free water, improved access to schooling and housing will all reduce the vulnerability of domestic workers and their families.
Conditions of employment
A sectoral determination enables me to set conditions of employment taking into consideration the particular circumstances of different sectors. The investigation established that most of the conditions of employment as set out in the Basic Conditions of Employment Act are also appropriate for domestic workers.
However there are areas where the investigation found that some changes were needed. These are in respect of overtime, night work, family responsibility leave and deductions.
In respect of overtime, a simpler system of paying overtime is suggested, bearing in mind the problems of keeping and verifying records when it is one person's word against another. An allowance or additional leave is proposed for domestic workers who have to stay with children, the sick or the aged at night.
Family responsibility leave is increased to five days, bearing in mind that many domestic workers stay far away from their families. Finally it is proposed that employers should not penalise domestic workers for any damages that might occur during the performance of their duties. If an employer believes that a domestic worker has willfully damaged property, they can declare a dispute and take the matter to the CCMA.
The process forward
The ball is in now in your court. Today, I am making a call to all South Africans to ensure this process moves forward. Almost all of you, at some time or another, have had something to do with domestic workers. Either you have a domestic worker working in your home and helped raise you. Or you are a domestic worker or one of your family members is a domestic worker.
This report is being published for your comments. We need your comments before 11 September this year. The Employment Conditions Commission, a body that includes representatives of organised business and labour as well as individuals with expertise in respect of vulnerable workers, will consider the comments. They will then make their final recommendations to myself. If all goes well, the process will be completed by the end of the year.
Conclusion
Domestic workers have been at the back of the queue when it comes to respect, decent wages and conditions of employment. Yet they are our mothers, our aunts and our sisters who ensured that their employers could go to work. It is our mothers, aunts and sisters who have contributed to the upbringing of hundreds and thousands of children who are not their own.
A particular poignant quote in the report attracted my attention and I quote:
"For domestic workers the struggle is not over until there is action. The book on apartheid has been closed but there has been no funeral, we are the ones that can bury it".
This, ladies and gentleman, epitomises the role that we as a society need to play in ensuring that the plight of domestic workers, in general, and those who suffer the brunt of exploitative employment relations in particular are addressed.
The time has indeed arrived where domestic workers are valued for the contribution they have made and are making. It is time that domestic workers are afforded their rightful place in the labour market and in society.
Representation can be submitted to either the Department of Labour's national office or your nearest labour centre. Contact details are as follows:
Postal address
The Chairperson, Employment Conditions Commission,
P/Bag X117
Pretoria
0001
E-mail: ntsoaki.mamashela@labour.gov.za
Fax (012) 309-4709
Tel (012) 309-4142 Ask for Len Colyn
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1 The median is the wage that the worker at the 50% point earns when workers are ordered from lowest to highest earner. The mean is the average wages obtained by dividing the total wages of all workers by the total number of workers. The mean wage is higher than median wage because the few workers who receive relatively high wages skew the means. The median is therefore a better measure of wages.