Minimum wage will affect small businesses
- Published on 18 Feb 2016
- HR Pulse News Desk
Writing in his personal capacity, Dr Thami Mazwai, who is special adviser to the Minister of Small Business, reports on discussions on the mooted national minimum wage (NMW) at a recent symposium at Wits University.
There it was suggested that the NMW’s introduction would lead to increased consumption, leading in turn to increased production and thus a growing of the economy. But, there is abundant research that businesses react differently to phenomena because of their size.
It is said that proponents of “the NMW will increase consumption and production” argument blissfully ignore the impact it could have on small business. Mazwai says that, while the NMW is necessary as it will lift millions out of dire poverty, the discussions on its implementation should focus on its impact on the vulnerable small business sector and the setting of a reasonable threshold.
Source: SA Labour News
