Research report for the partial fulfillment of the Masters of Management in Public Policy Degree, Faculty of Commerce, Law and Management School of Governance , September 2016 / This research investigated the potential of the proposed national minimum wage on income inequality and employment. According to the International Labour Organisation (ILO), the purpose of minimum wages is to ensure wages are able to cover the basic needs of workers and their families, taking into account relevant economic factors (Gilad, 2016). In South Africa, a national minimum wage is also being explored as a tool to reduce inequality and transform the inherited apartheid wage structure (Gilad, 2016). The study used a qualitative research methodology and deduced based on the data obtained that indeed South Africa can introduce the national minimum wage but needs to be cautious of the level at which it sets the minima. Secondly the research deduced that minimum wage will have positive effects on income inequality and minimal effects on employment provided that it is set at a right level. / MT 2017

M.Com. (Business Management) / The overall aim of this study was to investigate the impact of the wage-setting institutions, including bargaining councils and minimum wages, on the creation and long-term survival of small, medium and micro-enterprises (SMMEs) in South Africa. The objectives of the study focused on (i) gaining an understanding of how the legislative requirements impact on SMMEs; (ii) investigating what needs to be done to assist small companies in order to cope with the burden of compliance with "the prescriptions and provisions of the law; (iii) demonstrating how the current wage setting mechan-isms are partly responsible for the promotion of capital intensive firms at the expense of small- and medium sized entities; (iv) investigating how other countries approach the issue of exemption of small businesses from the stringent requirements of labour legislation; and (v) exploring the possibility for the establishment of a separate dispensation that may be utilised to govern the wage-setting environment for the SMME sector. The study commenced with the review of different literature sources. First, the importance of the SMME sector in wealth creation and the role of the government in developing SMMEs were dealt with. Existing constraints and problems, other than labour-related factors, facing the SMMEs were identified with the sole purpose of highlighting the general conditions under which they operate. The support offered by government and other stakeholders in developing SMMEs in South Africa were also discussed. Second, an overview of wage-setting institutions that shape the South African labour market, i.e. the National Economic Development and Labour Council (NEDLAC), bargaining councils and the Employment Conditions Commission (ECC) was provided. For the purposes of this study, two case studies (i.e. Sweden and Egypt) were chosen and a comparative analysis of these case studies focusing on the wage setting environment was performed, with the hope of drawing important lessons for South Africa. The cross-case analysis revealed that there are differences and similarities in the nature of wage-setting institutions that are found in Sweden, Egypt and South Africa. The lessons for South Africa are that there is a need (i) of strengthening of the role of NEDLAC (tripartism); (ii) of recognising the fact that globalisation is not a myth but a reality, even for SMMEs; (iii) of creating an institutionalised dialogue for the SMME sector, i.e. SMME representative body; and (iv) of expanding the role of workplace forums in the South African environment to facilitate meaningful collective bargaining at local level. Following the cross-case analysis, the research findings on the effects of wage-setting institutions on SMMEs were presented. This was achieved by examining empirical evidence. First, an analysis of collective bargaining and minimum wages was conducted by focusing on the different aspects of the wage-setting institutions that may be considered to have an impact on the creation and long-term survival of small and medium enterprises. This was followed by an exploration of empirical evidence if there is a need for creating a separate dispensation, i.e. two-tier labour market, for the SMME sector in South Africa. Despite an intense scrutiny of the relationship between wage-setting institutions and their effects on SMMEs, the study found that there are no discernible impacts on small and medium businesses. As a result, this study proposes that the policy framework for developing a suitable environment for small and medium businesses in South Africa should be based on targeted strategic policy interventions rather than general measures such as tax reduction or labour market deregulation. These strategic policy interventions are given as recommendations of this study. In concluding the study, the following recommendations are made: • Strengthening of the social dialogue and collective bargaining in South Africa through the expansion of the role of workplace forums; • The establishment of a separate dispensation for SMMEs in South Africa, e.g. two-tier wage system, is not necessary; • A case is made for the establishment of a SMME representative body or bodies, independent of large companies, to collectively represent the interests of smaller businesses in general or in a particular sector of the economy or a geographical area in South Africa; • A need for a shift in small and medium-sized enterprise policy in the South Africa away from "one size fits all" approach to clustering SMMEs in economic sectors that have growth potential; and • SMME policies need to be re-focused to address the economic challenges the country faces due to external competition and globalisation, and this will ensure a more co-ordinated approach to the development of SMME policy in South Africa.

Summary in English. / Bibliography: pages 35-36.

Thesis (M. Sc. Agriculture (Agricultural Economics)) -- University of Limpopo, 2021 / The President of South Africa signed the National Minimum Wage Act, the amendment of both the Basic Conditions of Employment Act and Labour Relations Act on Friday, 23 November 2018. These Acts, which were with effect from 1 January 2019, oblige all employers to pay at least the national minimum wage of R20.00/hr. and the agricultural sector has been given an exemption to pay 90% respectively of the national minimum wage (Truter, 2018). Employers in the farming sector are expected to pay at least R18.00 per hour to farm workers. However, farmers are different in terms of their characteristics and farming capacities, and they hold different perceptions towards the revised 2018 agricultural minimum wage. According to Sechaba (2017), it is believed that there will always be different views on what constitutes a decent and acceptable minimum wage. This study investigated the perception of both smallholder and commercial farmers towards the 2018 agricultural minimum wage in Bushbuckridge Local Municipality of the Mpumalanga Province, South Africa. The study had three objectives; the first objective was to identify and describe the socio-economic characteristics of farmers, the second one was to assess the perception of farmers on the 2018 agricultural minimum wage and the third one was to analyse socio-economic factors influencing the perception of farmers towards agricultural minimum wage in Bushbuckridge Municipality. Purposive sampling was used to collect primary data from 160 smallholder and commercial farmers (Crop and Livestock) in Bushbuckridge Local Municipality (BLM). For empirical analysis the Multinomial Logistic Model was applied for data analysis based on information generated using the Likert scale and the two formulated assumptions; firstly, farmers do not have negative perceptions towards the 2018 agricultural minimum wage and lastly socioeconomic factors do not influence farmers’ perception towards the 2018 agricultural minimum wage. For empirical analysis, Multinomial logistic regression model was run on spss and the descriptive statistics was used to analyse the perception of famers based on the rank data from the Likert scale. Results from Multinomial regression analysis indicated that demographic factors such as number of hectares, household size, age, farming experience, marital status, and labour productivity were found to be significant vi (at 1, 5 and 10%) in distinguishing between pairs of groups and contribution, which they make to change the odds of being in one dependent variable group rather than the other. About 48.8% sampled farmers in Bushbuckridge Local Municipality showed negative perceptions towards the 2018 agricultural minimum wage and were not likely to comply with the 2018 agricultural minimum wage legislation in a sense that they had not been paying the prescribed agricultural minimum wage to farm workers. Those who had positive perceptions and were willing to comply were only 15.0% and those who were uncertain on whether to comply or not comply with the 2018 agricultural minimum wage were 36.2%. Therefore, it can be concluded from results that smallholder and commercial farmers perceive the agricultural minimum wage differently and with majority of them not willing to comply or pay the prescribed amount. Additionally, several factors influences the perception on whether farmers were likely to comply or not to comply by paying the prescribed minimum wage to farm workers, based on the 2018 agricultural minimum wage. Variables: number of hectares, household size, age, experience, marital status and minimum wage were found to be significant (at different significant levels 1, 5 and 10%) in determining whether farmers were more likely or less likely to comply and pay the 2018 agricultural minimum wage. These variables plays a key role in determining farmers’ decision to comply or not to comply with the 2018 agricultural minimum wage. However, gender, minimum wage for farmers, distance to market, access to mechanisation, co-operative membership, access to news, pensioner and educational status were found to be insignificant (at different significant levels 1%, 5% and 10%) at determining whether farmers were likely to comply or not comply with the 2018 agricultural minimum wage. Thus, it is recommended that farmers, regardless of their production scale should be consulted and given a fair platform to articulate their views during the process of policy formulation. Policy makers and government should refrain from using a blanket approach when formulating a policy and taking into consideration the issue of disparities in the agricultural sector, subsectors, regions and operational scale of farmers when discussing the agricultural minimum wage policy.