Masisi: Industry captains can pay above minimum wage

Correspondent | Tuesday September 5, 2023 06:00

Last week, as the nation celebrated the inauguration of the first paper recycling industrial plant owned by Strides of Success, Masisi seized the opportunity to address a gathering of industry leaders. During his speech, he expressed his disappointment with the treatment of Batswana as labourers who receive meagre wages despite being the driving force behind the country's economic activity.

Amongst the prominent figures in attendance were Farouk Ismail, Ramachandran Ottapathu, and Satar Dada, shareholders of Strides of Success, who are responsible for a significant portion of private sector jobs in Botswana. Masisi voiced his concern about the glaring disparity between the profits generated by companies and the compensation provided to their employees. "We know that companies are making a lot of money in Botswana and we are aware of this fact and as a result, they must pay their workers well," he emphasised.

Masisi also highlighted that the local minimum wage, currently set at P7.34 per hour, should not be viewed as an upper limit that local entrepreneurs cannot exceed. He pointed out that many Batswana are dissatisfied with their earnings in the private sector, and in the past, the minimum wage has been blamed for these inadequate payments. Masisi firmly believes that local entrepreneurs can pay higher wages. “Minimum wage is not a limit on how much Batswana should be paid. Many companies have demonstrated the ability to pay more than this, but they just simply won’t do it,” he asserted.

The issue of the minimum wage in Botswana has long been a subject of contention, with many expressing dissatisfaction with low wages in the private sector. Despite ongoing grievances, the government has been slow to take legislative action to significantly improve worker welfare, citing various reasons. On one side of the debate, some analysts argue that a high minimum wage could deter investors and lead to labour costs that are too expensive for businesses. Conversely, opponents of this view believe that the private sector can pay more than the government-mandated minimum.

While Masisi advocates for improved wages and the minimum wage debate rages on, workers continue to grapple with stubborn food inflation, which erodes their already modest earnings. As of July, within the food and non-alcoholic goods category, vegetable prices had risen by 15.8% year-on-year, while bread and cereals were up by 15.7%. Cereals encompass items like maize, rice, sorghum, and others.