Minimum wages incentivise job cuts – let’s try something else

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Minimum wages incentivise job cuts. It is time to try something different, something based on market efficiencies rather than government impositions to secure employment for low-skilled workers, writes Sindile Vabaza

A belief system issue because those who are fighting for social justice apparently believe coercion is the better incentive to use on employers to obtain higher wages for workers.

Considering how many people are employed in these two sectors, a solution to the wage problem would be to declare payments to these workers tax deductible for their employers. Creating mechanisms and protections that follow market principles has the potential to build trust and show that government intervention is not the only way to solve issues.

Pay is influenced by how much the employer earns, the living costs of the different locales, and the employment climate. As for the agricultural sector, the fourth industrial revolution looms large. Mechanisation in the commercial farming sector has already resulted in job losses.

 

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the wages for a large amount of workers are barely subsistence to begin with. are you really trying to imply that they should be *lower* .... seriously?

The problem in sa is union power

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