Minimum wage kills prospects, increases joblessness and insults the poor

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Minimum wage kills prospects, increases joblessness and insults the poor
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Minimum wage kills prospects, increases joblessness and insults the poor, writes Mpiyakhe Dhlamini

The national minimum wage is a crime against the poor of this country as it forbids them from accepting any compensation below the floor set by the government. It is reasonable, therefore, to assume that some people who could be working are not employed because of the minimum wage.

It is amazing that anyone could think it a good thing to raise the cost of labour through legislation when we have an official unemployment rate of 27.6%, or 38% if you include those who have given up looking for work. If you are desperate to sell anything , the last thing you would do is raise its price.

It is perhaps a reflection of officialdom’s supreme neglect of poor people that they are given a terrible education to depress their value as employees, and then when they are ready to work, the cost of their labour is raised to above that value. In essence, the government legislates for unemployment. It is not just the minimum wage, but every single piece of labour regulation that makes it more costly to hire a worker.

Low-paid jobs might well increase relative to high-paid jobs, but that was in spite of the government and not because of any action on the part of officials to stop artificially raising the cost of labour. Lest we forget, the Labour Relations Act, passed in 1995, forces centralised collective bargaining upon employers and employees, and in 1999 sectoral minimum wages were introduced.

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BDliveSA /  🏆 12. in ZA

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