Report of the employment conditions commission on the investigation into a sectoral determination for the forestry sector

CHAPTER THREE

This section focuses on inputs received from the stakeholders, both from the public hearings and also from the questionnaire administration process. The format of the report in respect of these issues is as follows: issues for discussion, followed by the views of stakeholders, then the Department’s proposals and, finally, recommendations of the ECC. The following issues were discussed during the public hearings:

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  Job categories;
  
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  Demarcation;
  
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  New minimum wages;
  
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  Minimum wage increases;
  
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  Accommodation;
  
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  Sunday work;
  
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  Night work and transport provision; and
  
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  Other related conditions
  

Job categories

Views of employers

In line with setting of a new minimum wage, some employers in Limpopo proposed that job categories be included in the determination to allow specialization by employees. They also suggested that Theta should be consulted when introducing job categories to ensure that they meet the standards set in the NQF.

Views of employees

Some employees employed in bigger establishments proposed the introduction of job categories in the determination and emphasized that skills and work experience should be taken into consideration when dealing with minimum wages. They argued that a newly appointed employee should not receive the same wage as an employee who has worked a number of years with more experience. They also argued that job categories would eliminate exploitation where an employee is required to perform a variety of duties without any form of compensation. According to them, job categories would motivate employees since they would be performing specialized jobs and be paid accordingly. However, some employees working in guest houses and B&Bs indicated that job categories would not be suitable for them due to the size of their businesses. They indicated that the current determination covers their situation perfectly.

SACCAWU, on the other hand, submitted that a breakdown of occupations with clear job descriptions should be included in the determination. SACCAWU also proposed that an appropriate definition of workers classified as domestic workers should be included to avoid a situation where employers utilized their domestic workers in their establishments, especially guest houses and B&Bs. The union also suggested that temporary workers be given a clear definition, with defined regulations in terms of hours of work and duration of contracts. Lastly, SACCAWU requested the introduction of a full-time permanent and temporary employee ratio to try and curb the casualization within the sector.
Views of the Department

During the initial discussions prior to the establishment of the sectoral determination, proposals regarding job categories were discussed extensively. Stakeholders indicated that the Minister has powers to establish minimum conditions of employment which, in this case, would be setting of minimum wages and proposed that employers in their operations should benchmark on the minimum wages to determine wages for the skilled staff. Another consideration in this regard was the fact that the majority of employers in the sector are small establishments, who may not have the capacity to employ staff according to fixed job categories. The Department therefore proposes that the scope of application should be maintained as it is in the current determination.

Views of the ECC

The ECC supports the proposal by the Department that this matter is appropriately addressed in the determination and no further changes are proposed during this time.

Demarcation

Currently a two tier wage dispensation is applicable in the sector. The wages are set in terms of the number of employees employed in the establishment. The minimum wage for employers employing more than 10 employees is set at a higher rate, whilst the minimum rate for those employing 10 or less employees is set at 10% lower.

Views of the employers

The Southern Midlands Tourism forwarded inputs on behalf of their stakeholders based in KwaZulu-Natal. In their submission they argued that the decision of demarcating in terms of the number of employees employed has a negative impact in that employers have decided to remain below 10 employees in order to pay the reduced wage. They proposed that the occupancy rate should be utilized to determine the wage which the employer should pay.

FEDHASA argued for demarcation based on rural and urban areas within the hospitality sector. They indicated that establishments located in the rural areas do not enjoy the same level of economic prosperity as their counterparts in the major metropolitan areas. They also do not enjoy similar average levels of occupancy as their urban counterparts. Their room/meal rates are generally considerably lower than the rates charges in the urban areas. In addition, they mentioned that many of the rural hotels are struggling and therefore proposed that the determination should provide for an urban/rural differential as far as the minimum wage provision was concerned.
Some employers in the Northern Cape also proposed that a regional differentiation should be made to accommodate establishments in the rural areas. They argued that SMMEs in the rural areas were not as profitable or economically active as those in urban areas. Some employers in Springbok also proposed an urban/rural divide, indicating that they relied on the mines in the area, many of which had shut down and led to a further downturn in business. Consequently, they had to rely on passing trade in order to sustain their businesses and retain staff.

Views of employees

Some employees of small establishments like the B&Bs and guesthouses indicated that the determination should provide for a single wage without any distinction in terms of the number of employees employed. They argued that employees of small establishments were required to do everything whilst their counterparts in hotels do specialized work. They indicated that their workload is more than that of employees employed in big establishments.

Views of the Department

Demarcation was extensively debated prior to the establishment of the sectoral determination. The proposal to demarcate based on the urban and rural was also examined and the challenge was the fact that establishments in urban areas did not necessarily make more profits when compared with those in rural areas. For example, the Kruger National Park establishments are located in a rural area but are more profitable than some urban establishments. Another challenge in this regard was the fact that there are developments taking place in a number of towns located in the rural areas, e.g. Nelspruit. Most of the tourists visiting South Africa would prefer to visit Nelspruit as their point of destination and therefore the income generated by the hospitality establishments in this area could be much more than that of some urban-based establishments. On the basis of this inconsistency, it was therefore recommended by the ECC that the number of employees employed by the establishment be utilized to demarcate the establishments, which resulted in a two tier wage dispensation.

The Department therefore proposes that the current demarcation in the determination should be maintained.
Views of the ECC

The ECC supports the proposal by the Department that this matter is appropriately addressed in the determination and no further changes are proposed during this time.