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

Thesis (MBA)--Stellenbosch University, 2012. / Many different definitions of human resources as a field of practice exist but few would disagree with the fact that a company’s remuneration practices play a crucially important role in the development and management of a productive workforce. Being such a crucial part of the employment relationship, a company’s remuneration strategy has the potential power to influence many factors contributing to employee well-being and operational success. The focus of this project has been an investigation of the current remuneration practices within Route Management (Pty) Ltd and the effect it has on employees, with specific reference to monthly paid employees at the Cape Town plant. The possibility of the current remuneration practices having a negative impact on employee satisfaction and crucial functions like skills retention have been scrutinised, and even where such concerns are not justified, the aim is to inform top management of the benefits that their current approach towards remuneration has to offer. In order to study the effect of the current remuneration practices deployed at Route Management, the research focused on employee satisfaction as a possible indicator of the impact these practices may have on employees. Employee satisfaction is a very wide construct, has many different components and has been studied widely in the literature. This complex construct along with some issues surrounding remuneration form the basis of the literature review presented in the report. A self-administered questionnaire was developed and with the size and physical location of the population in mind, a delivery and collection method was chosen to administer the questionnaires. This kind of questionnaire provided the respondents with the opportunity to complete the questions without any assistance from the researcher, ensuring that the researcher’s contribution was kept to an absolute minimum, and in doing so avoiding bias during the questionnaire data collection phase. Weights were assigned to questions in order to obtain a total employee satisfaction indicator score for each respondent, as well as two sub-indicator scores, namely a general employee satisfaction indicator and a remuneration satisfaction indicator for each respondent. Results showed that by far the majority of respondents are either satisfied or very satisfied with regards to their employment situation at Route Management with only 15 percent of respondents indicating that they are unsatisfied with remuneration practices at the company. All employees were found to be satisfied according to their general employee satisfaction and their total satisfaction indicator scores. The final analysis studied the relationship between remuneration satisfaction and general satisfaction. The results found that the company’s remuneration practices do not impact negatively on general employee satisfaction and with an average total satisfaction score of 72 percent, and 40 percent of all respondents found to be very satisfied, the company can be confident to work with a productive and motivated team at their Cape Town plant. Results showed that remuneration satisfaction does have some degree of positive impact on the level of general satisfaction which employees experience. Consequently, Route Management’s board of directors should consider these results as a positive indicator for their future decisions regarding remuneration practices, but should also consider the advantages of gaining more information from this type of research. It is therefore advised that this or similar studies should be rolled out and applied to the entire organisation.

M.Com. (Taxation) / Please refer to full text to view abstract

M.Comm. / The aim of this dissertation is to undertake an empirical study of the determinants of the Phillips curve for South Africa (SA). The work will be concentrated on the relationship between inflation (or wage inflation) and unemployment in SA from 1980 to 1998 with a particular focus on the behaviour of the Non Accelerating Inflation Rate of Unemployment (NAIRU). Given the importance of the NAIRU in formulating monetary policy, it will be therfore be appropriate to analysed this parameter. The NAIRU tends to perform differently in the face of price and wage inflation and therefore it has been found wise to divide the model into two categories. Price/unemployment model. Wage/unemployment model. The first model will be referred to as the Price-Phillips curve where as the second will usually be referred to as the Wage-Phillips curve. Models of Price-Phillips curve and Wage-Phillips curve are valuable tools for policy makers for a number of different purposes. In its original form the wage (or price) — unemployment relationship presents politicians with a list of different trade — offs to choose between inflation and unemployment. The trade-off seems to suggest that policy makers could choose a specific inflation-unemployment combination by controlling aggregate demand. This clearly points out that the trade-off postulated in the Phillips curve can be an usefull tool for monetary policy.

Thesis (M.Com. (Development Theory and Policy))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Economic and Business Sciences, 201 / Drawing on data from the National Income Dynamics Survey (NIDS) from 2008-2012, this paper investigates informal-formal earnings gaps in South Africa in order to assess the validity of labour market segmentation theories and to shed light on the motivations behind informal labour. In addition to controlling for observed individual characteristics using pooled OLS regression, fixed effects and quantile regressions are also estimated to control for time-invariant individual heterogeneity and to assess variations in earnings gap along the income distribution. Results are indicative of segmentation both within informal employment and in the labour market as a whole. Overall, informal employment in South Africa can be characterised as highly diverse and heterogeneous, with earnings differentials varying by employment type (whether salaried or self-employed), gender, and level of income. This earnings analysis is complemented by a brief exploration into the non-pecuniary characteristics of informal employment, with a consideration of the relationship between subjective wellbeing and informality.

Research Report submitted to the Faculty of Commerce, Law and Management, University of Witwatersrand in partial fulfilment for a Masters in Management in the field of Public and Development Management. February 2017 / Minimum wage laws in South Africa have been enacted and implemented for some time with a broader intention that purports to protect and regulate what are categorized at least from state’s definition as the vulnerable sectors, which includes the taxi industry. The minibus taxi industry in South Africa is characterized and plagued by inherent exploitative labour relations between taxi drivers and operators. There are often contrasting views and disagreement on the minimum wage which is supposed to be implemented by the Department of Labour as the custodian of all the labour laws in the country through inspections and enforcement by labour inspectors. The purpose of this study was to investigate the perceptions held by the various stakeholders in the taxi industry with respect to the implementation of the Sectoral Wage Determination 11 as provided for by the Basic Conditions of Employment Act, of1997. Interviews were held with ten taxi drivers, ten taxi operators based in Johannesburg and from the Department of Labour, and three team leaders in the Inspection and Enforcement Services, all based and servicing Johannesburg. The study established that there is enough knowledge and appreciation of the minimum wage; however, there is to a large extent transgressions and noncompliance from employers in the industry. Monitoring and enforcement remain a challenge fuelled by peculiarities and the dynamism that is not in tandem with industry realities and legislative prescripts. / MT2017

The focus of the study is the wages and working conditions of farm labourers in commercial agriculture. After an outline examination of the broad trends in employment and wages in the agricultural industry as a whole, the emphasis falls on a micro-study of employment practices in the Eastern Cape magisterial district of Albany. The results of a survey of farmers was used to determine the level of wages, including payments in kind, the value of housing, cropping and grazing rights. It was found that cash wages made up only 25% of the total remuneration of R684 per annum, while purchased and farm produced rations made up a further 40% of the total. A survey conducted in the Albany district two decades previously was used to compare the real earnings in 1957 and 1977. Although real cash wages and rations increased over the twenty year period the restriction of cropping and grazing rights had the effect of keeping real earnings static. In the light of the improvement of other working conditions, such as the reduction in working hours, however, it is concluded that some increase in real wages did occur . It is evident that there are no clear-cut recipes for successful farm labour management and no unequivocal statements should be made about the most visible element, namely cash wages.

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.

Thesis (PhD)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: Microeconometric techniques have improved understanding of South Africa’s labour market substantially in the last two decades. This dissertation adds to this evidence by considering three separate labour market questions, with particular attention to data quality and the application of credible methodology. Firstly, wage flexibility is investigated. Whereas selected previous microeconometric evidence suggests that wage setters in South Africa are highly responsive to external local labour market circumstances, it is not corroborated by macroeconomic and other microeconometric studies. This question is interrogated again, with particular attention to methodological issues in wage curve estimation. The latter is a robust negative relationship between individual wages and local unemployment rates, found in most countries, except where bargaining is highly centralized. Adding time variation to the data allows controls for spatial heterogeneity to be introduced, leading to the conclusion that wages are really inflexible in the short-run. Rather, the trade-off between wages and local unemployment that previous work has found represents a long-run spatial equilibrium. This finding is robust to instrumentation for reverse causality and the measurement error that is associated with choosing incorrect labour market demarcations. Secondly, the reliability of retrospective data related to childhood is investigated, with the view of estimating the long-run influence that early life circumstances have on adult outcomes. Two indicators, parental education and subjective rankings of childhood socioeconomic status, are evaluated. The first set of indicators has poor response rates, as many South African children live without their parents. Where respondents do volunteer this information, they answer consistently across waves. Subjective rankings have higher response rates, as they require respondents to provide information about their own past, and not about those of their parents. However, individuals’ assessments are inconsistent over time, despite being asked about the same point in the life cycle. They tend to change their view of the past in line with adjustments to perceptions of their position in the village income distribution and subjective well-being, providing clear evidence of anchoring. Instrumental variables analysis has been used in previous studies to account for measurement error in subjective data. However, if anchoring affects all assessments of the past and potential outcome variables (such as employment), microeconometric techniques will yield biased estimates of the effects of childhood on long-run outcomes. Finally, age-period-cohort models for South African labour force participation are estimated. This chapter is the first contribution to relax the assumption that cohort differences must remain permanent over the life cycle. Monte-Carlo simulation studies show that highly interactive specifications can partially recover the true underlying process. Using a variety of techniques (imposing behavioural restrictions and atheoretical approaches), this study shows that cohort effects in labour force participation can be temporary in South Africa, though more data is required to verify this conclusively. Regardless of technique, a distinct surge in labour force participation is noted for the group born after 1975. Pertinently, the combination of testable assumptions and highly flexible estimation can yield credible age-period-cohort profiles, despite the many disputes noted in the literature. Previous evidence of a surge in participation for the post-1975 cohort can now be shown to be temporary rather than a part of a long-run generational increase. / AFRIKAANSE OPSOMMING: Mikro-ekonometriese tegnieke het kennis oor die Suid-Afrikaanse arbeidsmark aansienlik uitgebrei in die afgelope twee dekades. Hierdie proefskrif dra by tot hierdie bewyse deur drie afsonderlike arbeidsmark vraagstukke te beskou, met die klem op datagehalte en toepassing van geloofwaardige metodologie. Eerstens word die kwessie van loonaanpasbaarheid beskou. Waar sekere vorige mikro-ekonometriese bewyse aandui dat loonbepalers in Suid-Afrika sterk op eksterne plaaslike arbeidsmarktoestande reageer, word hierdie bevinding nie deur makro-ekonomiese en ander mikro-ekonometriese studies ondersteun nie. Hierdie vraag word dus opnuut ondersoek, met die klem op metodologiese kwessies wat ‘n invloed op die beraming van die loonkurwe het. Laasgenoemde is die negatiewe verhouding tussen individuele lone en plaaslike werkloosheidskoerse wat in die meeste lande geld, behalwe daar waar loonbedinging sterk gesentraliseer is. Deur tydsvariasie by die data te voeg, is dit moontlik om vir heterogeniteit oor ruimte voorsiening te maak, wat tot die gevolgtrekking lei dat lone inderdaad onbuigsaam oor die korttermyn is. Die afruiling tussen lone en plaaslike werkloosheidskoerse wat vorige navorsing bevind het, verteenwoordig eerder ‘n langtermyn ruimtelike ewewig. Hierdie bevinding is nie sensitief vir instrumentasie nie. Laasgenoemde is nodig om voorsiening te maak vir moontlike sydigheid wat kan ontstaan indien die rigting van kousaliteit omgekeerd is, sowel as metingsfoute wat daarmee gepaard gaan as navorsers die plaaslike arbeidsmark verkeerd definiëer. Tweedens word die betroubaarheid van data wat volwassenes vra om hulle kinderomstandighede te onthou, ondersoek. Die uiteindelike doel is om vas te stel of omstandighede vroeg in die lewe ‘n invloed op die uitkomstes van volwassenes het. Twee veranderlikes, naamlik ouers se opvoedingsvlakke en die subjektiewe terugskouende sosioekonomiese rang in respondente se kinderdae, word geëvalueer. Die eerste stel veranderlikes is onderhewig aan lae reaksiekoerse omdat ‘n aansienlike hoeveelheid Suid-Afrikaanse kinders sonder een of beide ouers grootword. Waar respondente wel hierdie inligting verskaf is individue se antwoorde konsekwent tussen twee golwe van ‘n paneelopname. Die vraag na die subjektiewe rang lewer beter reaksiekoerse omdat dit vereis dat respondente inligting oor hulle eie verlede verskaf, en nie oor dié van hul ouers nie. Nietemin is individue se antwoorde strydig oor tyd, ten spyte daarvan dat hulle inligting oor dieselfde tydstip in die lewenssiklus moet verskaf. Hulle is geneig om hulle opinies oor die verlede in lyn met veranderende persepsies van hul huidige posisie in die dorpsinkomsteverdeling, sowel as hulle eie subjektiewe welstand, aan te pas. Dit verskaf dus ‘n sterk aanduiding dat mense hulle antwoorde oor die verlede in huidige toestande anker. Instrumentele veranderlike analise is in vorige studies aangewend om voorsiening te maak vir metingsfoute in subjektiewe data. Indien inligting oor die verlede, asook moontlik uitkomsteveranderlikes (soos indiensname), geanker word in huidige persepsies, sal mikroekonometriese tegnieke egter steeds sydige beramings van die impak van kinderdae op langtermyn uitkomstes bied. Laastens, word sogenaamde ouderdom-periode-kohort modelle op Suid-Afrikaanse arbeidsmarkdeelname data toegepas. Hierdie hoofstuk is die eerste bydrae wat die aanname dat kohortverskille permanent moet bly oor die lewenssiklus laat vaar. Monte-Carlo simulasies dui aan dat hoogs interaktiewe spesifikasies die onderliggende proses gedeeltelik kan weerspieël. Verskeie tegnieke word aangewend (insluitend dié wat gedragsaannames afdwing asook ateoretiese benaderings) wat wys dat kohorteffekte in arbeidsmarkdeelname tydelik kan wees. Tog word meer data benodig om hierdie stelling sonder twyfel te bevestig. Onafhanklik van die tegniek wat gebruik word, is dit duidelik dat ‘n skerp toename in arbeidsmarkdeelname plaasgevind het vir die groep wat na 1975 gebore is. Verder is dit beduidend dat die kombinasie van toetsbare aannames en hoogs buigsame beramers ‘n geloofwaardige oplossing vir die ouderdoms-periode-kohort probleem verskaf, ten spyte van die vele twispunte wat in die literatuur uitgelig word. Vorige bewyse van ‘n toename in arbeidsmagdeelname vir die post-1975 kohort kan nou as ‘n tydelike tendens bestempel word, eerder as ‘n deel van die langtermyn toename oor generasies.

The present study explored the relationships between pay satisfaction, affective organisational commitment, voluntary turnover intention, and attitudes to money in a South African context, as well as whether attitudes to money acted as a moderator and affective organisational commitment as a mediator in the relationship between pay satisfaction and voluntary turnover intention. All participants received a web link to an online survey host in which a questionnaire was presented. The questionnaire included a self-constructed demographic questionnaire, the Pay Satisfaction Questionnaire (Heneman & Schwab, 1985), the Organisational Commitment Questionnaire (Mowday, Steers, & Porter, 1979), an adapted six-item questionnaire assessing voluntary turnover intention, and the Money Ethics Scale (Tang, 1992). The final sample (n = 190) consisted of respondents from a corporate company, as well as a snowball sample from social networks (Facebook, Twitter, and LinkedIn). The results suggested that pay satisfaction may best be viewed as a multi-dimensional construct both internationally and within a South African context. The study provides further support that this is robust across different types of samples and contexts and in different organisational fields. Furthermore, pay satisfaction was positively related to affective organisational commitment and negatively related to voluntary turnover intention. Voluntary turnover intention was also significantly and very strongly negatively related to affective organisational commitment. Moreover, affective organisational commitment mediated the relationship between pay satisfaction and voluntary turnover intention. This supported international findings regarding these relationships. Although one of the subscales of pay satisfaction, pay benefits, was significantly and negatively related to ‘good’ attitude to money, overall pay satisfaction and the other subscales did not significantly relate to money being seen as ‘good’. Pay satisfaction and all its subscales were also not related to money being seen as ‘evil’, an ‘achievement’, ‘respect’ for money, ‘budget’, ‘freedom’, or overall attitude to money. Furthermore, overall attitude to money and all of the subscales were not significantly related to either organisational commitment or voluntary turnover intention. In addition, further analyses found no moderating effect for attitudes to money in terms of the relationship between pay satisfaction and voluntary turnover intention. These results were unexpected given the limited theory available and further research is required.