Minimum wage legislation, training and personnel policies: a comparison between law and practice in South Africa and the United States America

Abstract

Amongst the manpower problems facing South Africa at the end of the 1970's, are the prevalence of poverty amongst a large proportion of the population, a shortage of skilled labour combined with a surplus of unskilled labour, and a need to establish equal opportunities for all members of the labour force in all sectors of the economy. These same three problems (with some differences in emphasis) were also recognised in the United States of America in the period following the Second World War. Various groups, from social reform organisations to the Federal Government, initiated concerted and large-scale projects in an attempt to solvt* the problems. Voluntary efforts were made by both the public and private sectors, while legal measures were introduced to provide the necessary and relevant backing. Some twenty years later poverty, under-utilisatior of manpower and unequal employment opportunities, are no longer problems of such magnitude. Because the US has not only experienced the same problems as South Africa, but has also found solutions to them, it was logical to study the US situation and to compare it with the South African one. This research rBport concentrates on the use and effectiveness of minimum wage legislation in combating poverty; of training schemes in alleviating both aspects of the skill problem; and of personnel practices in creating an environment in which equal opportunities is a meaningful concept for all workers. It was found that US minimum wage legislation does not, by itself, cause general unemployment, because not all sectors of the economy are subject to the laws. However certain groups of workers have experienced higher rates of unemployment, and the relatively high minimum wage appears to have been a contributory factor.