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Insignificant impact of NMW to retrenchments – CCMA tells Department of Labour Private Security seminar

by lloyd last modified 2019-06-27 11:47


One of the positives coming from statistics by the Commission for Conciliation Mediation and Arbitration (CCMA) is that there has been “insignificant” number of retrenchments linked to the introduction of the National Minimum Wage (NMW).

Haroun Docrat, national senior commissioner for collective bargaining at CCMA said as at 31 May 2019, there had been a relatively low rate of unfair dismissal referrals related to the NMW Act from private security sector. Docrat also said there had been a total of 322 private security referrals since the introduction of the NMW and Basic Conditions of Employment Act amendments.

Docrat was speaking this week during a presentation to the Private Security Seminar organised by the Department of Labour’s Inspections and Enforcement Services (IES) in Braamfontein. The theme of the seminar was: “Paying the National Minimum Wage (NMW) is the right thing to do”.

The seminar was organised as part of advocacy campaign to educate its stakeholders about compliance with the labour legislation and also aim to encourage the knowledge sharing between stakeholders in the sector with Government.

The Commissioner said Gauteng accounted for 30,9 percent followed by KwaZulu-Natal 21,1 percent on case referrals in the private security sector.

Docrat said some of the private security issues of dispute relate to underpayment; unilateral changes to terms and conditions of employment; any other dismissal related to NMWA; dispute relating to compliance orders; application to make a compliance order on arbitration award; request to make a written undertaking an arbitration award.

He emphasised that, “the NMW implementation is law and must be paid”.

The one-day seminar was attended by the Department’s labour inspectors, labour unions, private security companies, and the industry organisation – the Private Security Industry Regulatory Authority (Psira).

Department of Labour Chief Director Statutory & Advocacy Services, Advocate Fikiswa Mncanca said  private sector has long been problematic. Mncanca asked what was being done by the industry to deal with problems afflicting it.

She said the industry was still faced by a number of problems such as employers who do not issue payslips to their workers, not granting their worker reasonable rest periods, non-payment to overtime work, the hiring of undocumented foreign nationals who are either paid less wages or not paid at all.

“We are in an age of fourth industrial revolution. The question is - where are we as an industry”, asked Mncanca.

She cautioned that workers have a right to be paid a national minimum wage, and employers need to do the right thing. Mncanca said the industry needs to change the status quo that it is problematic, “It is not business as usual and it cannot be business as usual”.

For more information contact:

Department of Employment and Labour’s Deputy Director Advocacy and Stakeholder Relations

Zoleka Ntshoza

082 794 0011

Issued by: Makhosonke Buthelezi

Mobile: 071 491 7236


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