In a statement echoing the sentiments expressed by the Department of Employment and Labour in 2023, Dieter von Fintel, a development economist from Stellenbosch University, suggests that altering South Africa’s working hours is within the realm of possibility. However, he underscores the necessity of extensive research and substantial modifications to labor regulations to enact such a change effectively.
According to the Department of Employment and Labour, South African workers are among those toiling the longest hours globally, with most falling within a 40-48 hour work week. The Basic Conditions of Employment Act (BCEA) stipulates a maximum of 45 hours of work per week for workers earning below a certain threshold, currently set at R254,371.67 per year (R21,197.64 per month) as of April 1, 2024.
However, the BCEA allows for flexibility, permitting the revision of hours through collective bargaining agreements and contractual arrangements between employers and employees. The department advocates for a gradual reduction in working hours to establish a social standard without compromising wages, drawing on insights from the International Labour Organization (ILO).
The Viability of Reduced Hours
Dieter von Fintel acknowledges the potential feasibility of reducing work hours in South Africa, contingent upon adjustments to the BCEA and an assessment of employees’ ability to sustain themselves on reduced hours without a corresponding reduction in wages. He emphasizes the need for thorough research into the repercussions of significantly raising minimum wages on employment rates.
Von Fintel points out a crucial distinction between South Africa and wealthier nations concerning reduced work hours. While workers in affluent countries may afford to work fewer hours without experiencing a substantial financial setback, the same may not hold true for South Africa’s less well-compensated workforce. He advocates for minimum wage legislation as a complementary measure to capping work hours, citing the potential for minimum wage increases to facilitate reduced work hours without compromising productivity.
Navigating Minimum Wage Increases
Contrary to concerns about minimum wage hikes adversely affecting employment, Von Fintel highlights research suggesting that such increases in South Africa have often resulted in reduced work hours rather than job losses. He suggests that many low-wage workers could sustain themselves on fewer working hours if compensated adequately, thus potentially mitigating productivity losses.
However, Von Fintel urges caution, emphasizing the need for further research into the extent to which minimum wages can be increased while ensuring job creation remains economically viable for employers. He notes that while collective bargaining councils already regulate work weeks in certain sectors, extending such protections to all workers would require amendments to the BCEA.
In conclusion, while the prospect of reducing work hours in South Africa holds promise, it necessitates a multifaceted approach involving legislative amendments, comprehensive research, and careful consideration of the economic implications. The road to implementing such changes may be complex, but the potential benefits for workers’ well-being and productivity could be substantial.
