Exploring implementation of national minimum wage in the hospitality sector in Gauteng

Abstract

The overall very low level of wages and minimum wages in the pre-national minimum wage dispensation in some of the South African economic sectors has led to the introduction of national minimum wage policy valued at R20 per hour. Introduction of national minimum wage takes place after consideration of high-income gaps that exist between different job grades in the labour market. Sectors that are covered by sectoral determinations due to low levels of trade union organization, are targeted to benefit from national minimum wage. Statssa (2018) estimates that approximately six (6) million workers are targeted to benefit from this newly introduced national minimum wage. This reality presents a challenge to the state that is expected to enforce legislation. With International Labour Organization (ILO) standard of one labour inspector per 20 000 workers and our South African ratio of one inspector per 120 000 workers, labour inspection structural challenges present fresh doubts on whether the state will be able to enforce the national minimum wage (Parliamentary Portfolio Committee on Labour, 2018).

The research study is targeting to explore implementation of national minimum in the hospitality sector in Gauteng. Hospitality sector is a broad industry that include a number of sub-sectors such as hotels, catering services, entertainment, restaurants, bars or taverns and casinos but my research study will be located to the restaurant sub-sector with employees working in different categories, such as cook, waiter, bartender, child minder. Child minder in the hospitality sector means an employee whose job is to look after customers’ children in the play area around hotels and restaurants. Hospitality industry is labour intensive and characterized by irregular working hours, wages that are low, low skills, poor working conditions and precarity. Introduction of national minimum wage in South Africa has brought new hopes for better wages to a number of employees in the country.