Taxi owners cautiously welcomed a new government code unveiled on Thursday for minimum wages and basic employment conditions in the industry.
Workers embraced the announcement and warned employers that attempts to violate or undermine the initiative will face ”vigorous challenge”.
”This is a historic moment as our government … expresses its commitment to protecting vulnerable workers,” South African Taxi and Allied Workers’ Union president Ezrom Mabyana said at a launch ceremony in Pretoria.
The sectoral determination for the taxi industry, which comes into effect on July 1, will see a minimum wage of R1 350 per month apply to taxi drivers and administrative staff.
Rank marshals will have to be paid a minimum of R1 080, and other workers, such as fare collectors and car washers, will receive R945.
The determination further provides for an increase for workers of CPIX inflation plus 2% after one year, and another of the same margin a year after that.
It also stipulates maximum working hours and compulsory rest periods, and guides overtime payments.
Taxi owners expressed concern that the initiative could result in job losses, as they foresee that the industry might battle financially in meeting the minimum conditions.
South African National Taxi Council president Tom Muofhe said owners are in ”broad agreement” with the sectoral determination, but concerned about its practical execution and the implied costs.
Referring to provisions for sick, parental and other types of leave and the curbing of working hours, he said: ”We do not oppose these, but we do have to ask, who will bear the costs?”
Muofhe pointed to the fact that the taxi industry receives no government subsidies. It is based in the informal sector of the economy, yet ”now the government expects us to adhere to formal sector provisions”.
He warned that the new determination brings with it ”a great possibility for misunderstanding” — with employees possibly insisting on more than provided for and employers not fully understanding what is expected of them.
”It is already an industry where there are more than enough grounds for unrest and violence,” Muofhe said. ”The last thing anyone wants is for a government act, intended to improve the situation of employees, to result in the worsening of the picture.”
To this end, he urged the government to institute an awareness programme on the intricacies of the sectoral determination for employees and workers.
”This must be done without delay, because tomorrow may be too late.”
Top Six taxi owners’ body chairperson Sicelo Mabaso also expressed concern about the costs.
”We hope this doesn’t destroy the spirit of ubuntu that existed between employer and employee,” he told the function. ”We are praying and hoping these changes won’t force employees to cut down their fleets. If the industry finds the changes to be unsustainable, obviously the first victim will be employees.”
Mabyana called on employers to support the determination, and urged the government to speed up the regulation of the industry.
This is the only way to curb violence, such as that recently seen in the Western Cape, he said.
Minister of Labour Membathisi Mdladlana said he realises not everybody will be happy. But the new regulations are necessary for the formalisation of the industry — responsible for about 65% of public transport in the country.
”We are moving into an exciting era,” he said. — Sapa