FMF NEWSLETTER 19 APRIL 2017
Dear friend of the FMF
This week’s feature article examines the disastrous effects that South Africa’s new National Minimum Wage will have on the poor. David Ansara explains that the minimum wage will not create more jobs and will erect more barriers to employment for South Africa’s poorest citizens. David makes the case for economic mobility, not economic stagnation.
The National Minimum Wage will deepen South Africa’s unemployment crisis – DAVID ANSARA
The proposed National Minimum Wage (NMW), due to come into force on 1 May 2018, is a quick fix to a systemic problem that will artificially increase salaries for those who already have a job, rather than create more jobs.
Deputy President Cyril Ramaphosa, who enjoys the political backing of trade union federation and Tripartite Alliance partner, COSATU, has championed the cause of the NMW. COSATU is useful for shoring up support for Mr Ramaphosa ahead of the ANC’s elective congress in December, so the NMW is widely seen as a sop to the unions, and a political tool in the ANC’s internal succession battle.
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Wednesday, May 17 MEDIA BRIEFING – Leon Louw – Transformation via legislation vs transformation via growth @ 11h30 @ FMF – more info to follow
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Publish date: 19 April 2017
The views expressed in the article are the author’s and are not necessarily shared by the members of the Foundation.