Minimum wage pressure weighs on gov’t ahead of 2024
Mompati Tlhankane | Monday November 13, 2023 06:00
A minimum wage is the lowest amount a worker can be paid hourly determined by law and paying an individual below the minimum wage is illegal. When opposition the Umbrella for Democratic Change (UDC) set the minimum wage at P3,000 in its 2019 General Election manifesto, many within the ruling Botswana Democratic Party (BDP) felt the figure was not feasible and had the potential to collapse the economy and lead to job losses. ‘Lea go a tsaa kae?’ (Where are you going to get the money from?) was the BDP’s question at the time. However, this week President Mokgweetsi Masisi confirmed during the State of the Nation Address (SONA) that the new minimum wages will be reviewed before the end of this financial year. He said government representatives, the labour movement and representatives of the business community have under tripartite arrangement concluded on the issue of minimum wages. “The tripartite has considered factors of inflation, the buying power and other economic factors in their conclusions. As is required by law, they have submitted recommendations to the Minister of Labour and Home Affairs for consideration and finality,” Masisi said.
In 2022 government adjusted the minimum wage rates by 8.4 percent across the board. The minimum wages rates for domestic and agricultural sectors were adjusted to P1,084 per month while most industries were adjusted to P7.34 per hour. Although government has not revealed how much is going to be set as the minimum wage, this week Labour and Home Affairs minister, Anna Mokgethi reiterated Masisi’s SONA announcement when she revealed that the Minimum Wage Advisory Board, convened on August 10, 2023, September 13, 2023 and October 31, 2023 to consider the adjustment of the minimum wages rate. “The tripartite have considered factors of inflation, the buying power and other economic factors in their conclusions. As is required by law, I have received their recommendations for consideration. The intention is to adjust the minimum wages rates before the end of this financial year,” Mokgethi told Parliament.
She was responding to a question from Kanye North legislator, Thapelo Letsholo, who had asked amongst others when the Minister would consider increasing the minimum wages and to explain the ministry’s approach to the minimum wages and employee protection in Botswana. Asked if it is feasible for the ministry to contemplate setting the minimum wages at P1,750 for domestic and farm workers, and at least P3,500 for individuals engaged in commercial businesses, including chain stores, Mokgethi disclosed that she is not in a position to confirm setting the minimum wage at any rate. “As indicated, I have received recommendations from the Board and the decision on the adjustment of the current rates will be influenced by the recommendations and justifications thereof by the Board,” she said. Mokgethi also indicated to Parliament that the determination of minimum wages was provided for under Part XVI of the Employment Act, Cap 47:01. Section 131 of the same Act provides for the establishment of the Minimum Wages Advisory Board (MWAB) which facilitates the Minister in determining the minimum wages. She said in accordance with the Third Schedule of the Employment Act, the Board consists of members from the tripartite plus; independent persons; representatives from Government, employers and workers. What informs fixing the minimum wages? Mokgethi further pointed out that in terms of Section 132 (1), “where the Minister considers it necessary or expedient to fix the minimum wage for any category of employees in any trade, section of trade, industry or section of industry specified in the Fourth Schedule of the Act, he shall refer the matter to the Board and the Board shall investigate the wages in the trade, section of trade industry or section of industry in question and make recommendations to him as to the minimum wage which should, in the Board's opinion, be payable to the employees belonging to the relevant category”. She said in doing its work, the Board considers the needs of the employees concerned and their families, taking into consideration the general level of wages in Botswana, the cost of living, any social security benefits and the relative living standards of other social groups. Mokgethi also added that the Board reflects on the desirability of eliminating discrimination between the sexes in respect of wages for equal work, economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment and all other relevant matters. She further said the Board also considered the economic background paper from the Ministry of Finance.
“The paper provided an overview of the economic and labour market situation in the country. The Board also considered information on Retrenchments and Minimum wage contraventions from my Ministry. These data from the two Ministries assist the Board to reflect on issues pertaining to the level of wages in the country, as well as the issue of employers’ affordability to pay, amongst other things,” she disclosed.
UDC sets minimum wage at P4,000 The Botswana National Front (BNF), which is an UDC affiliate, few months ago at Shoshong annual conference resolved to set the living wage at P4,000. Initially, the UDC had set the minimum wage at P3,000 in the build up to the 2019 General election. Boko, who also doubles as BNF and UDC president, has emphasised that they increased the minimum wage because the living wage proposition of the UDC assures a decent livelihood for those in gainful employment and uplifts them from their sub-human existence into a life of decency and dignity. “In 2019, the UDC set a bold amount of P3,000 which offers an entry point into a life of dignity and reasonable compensation to our people for their labour. The UDC stands firmly on this proposition and will assess the figure with a view to adjusting it upward as we approach 2024,” Boko highlighted. He said the clamouring critics have insinuated that the economy cannot sustain such levels. “The suggestion, especially when the proposition is applied to the private sector is that businesses would collapse. This suggestion is predicated on an exploitative framework in which the private businesses must continue to generate astronomical levels of profit on the sweat and toil of workers whose labour is grossly undervalued and the surplus they generate goes onto the pockets of employers as profit while workers drown in poverty and deprivation,” he explained.
Boko added that the proposition by the UDC flips the script and demands that a rise in tide must raise the boats on both sides of the divide. Botswana minimum wage okay, ILO recommended In terms of living wage, Mokgethi told Parliament that Botswana is a member of International Labour Organisation (ILO) and there is a way the latter advises its members. A living wage is the amount an individual or family would need to make to avoid living in poverty. This amount is usually higher than the minimum wage and is not mandated by law. “ILO advises us about minimum wages and I can confirm that this year in June when we attended the International Labour Conference in Geneva, we met with representatives from the minimum wage office of the ILO and sought advice about issues concerning minimum wage. They said they were in Botswana to look at issues of minimum wage and they never saw anything wrong with the current situation in Botswana,” she said. Mokgethi added Botswana takes all the recommendation it gets from the ILO regarding the minimum wages for Botswana. She said 90% of the world uses the minimum wage as compared to the living wage. “Most countries which use the living wage are first world countries with thriving economies. The living wage is aspirational,” she highlighted.
Mokgethi said they have not reached the level where they can use the living wage. MPs views Commenting on the issue in Parley, Nata-Gweta legislator Polson Majaga said the issue of wages doesn’t need the international organisations’ recommendation in order to address it. “International organisations don’t need to give us barometer checks and everything. This issue doesn’t need the Board, you as the minister should handle this because the serious outcry about minimum wage versus living wage has been going on for year,” he told Mokgethi. For his part Maun East MP, Goretetse Kekgonegile said the minister wants to use the international standards in a bargaining era. He asked why Mokgethi shouldn’t put the minimum wage advisory Board aside and leaves it to employee and employer to discuss issues of wages. He said leaving everything to the Board suggests that there are no consultations between and employee and employer in the private sector.
He further asked if the board includes people from domestic and agricultural sectors among others. He asked if the elites are not determining the wages of the downtrodden. Jwaneg-Mabutsane MP, Mephato Reatile asked the minister when she is going to consult with lowly paid workers such as security officers, fuel stations attendants and others what they suggest as the suitable minimum wage. He further asked why there is a lot of inequality in the private sector. “The Board is a legally established entity and consists of members from the tripartite plus; independent persons; representatives from Government, employers and workers. This is in terms of international labour and in terms of labour. We have rectified some international conventions which provide that in every decision which is made with respect to employment and labour issues we have to consult the tripartite so all views are taken into consideration. The government and the private sector are not the only one involved in decision making but workers and employers have representation on the minimum wage board,” Mokgethi further reiterated in response to Kekgonegile’s question. Slave wages in the private sector Mokgethi, however, admitted that it is disheartening that a lot of workers in the private sector are being used and abused. She said when the government set the minimum wage unscrupulous employers pays the lowest wages set. “We have indicated that this is a floor amount not the amount employers are supposed to pay their employees. We are going to fix the law and address this,” she pointed out.
Mokgethi said through the Labour Inspectorate, they conduct regular inspections in all sectors of the economy to enhance compliance with labour laws and prevent the abuse of employees. Furthermore, my Ministry is currently in the process to reviewing labour laws. “Consultations on the Employment and Labour Relations Bill by the tripartite Labour Law Review Committee have been concluded. The review is intended to improve on the current legislation to align with international labour standards. This will result improved terms and conditions of employment across sectors, including domestic workers, farm workers and chain store workers, i.e decent work for all,” she said.