FS businesses call for SA’s stringent labour laws to be relooked

Loading player...
The Free State Black Business Chamber (FSBBC) has added its voice to calls for South Africa’s stringent labour legislation to be relooked. The chamber’s Chief Executive Officer (CEO), Lucky Motsamai, says the legislation as is, is hampering small businesses from thriving. He makes specific mention of the country’s controversial minimum wage. Now as of 1 March 2021, the minimum wage per hour is R 21,69, which Motsamai deems to not be feasible especially for startups, which were brought to their knees as a result of the Covid-19 pandemic.

Motsamai, also spoke on elections adding that businesses are keeping a watchful eye over the outcome thereof. He says presently businesses in the province are being held back by local municipalities’ financial dysfunction in two ways. The first is with respect to business opportunities that are not being availed by the municipality via supply chain to businesses in need; and the second is as a result of service delivery constraints such as poor infrastructure, water issues amongst others making it difficult to run a business effectively. Motsamai says it is critical for municipalities to start performing financially, to help businesses still in their infancy stage, to rebuild.

“This election is occurring against the backdrop of high unemployment, low growth, poverty, and a skewed economic structure. We really need this election to be one that actually delivers,” says Motsamai. The FSBBC CEO says that it is businesses that are less than five years into operation that are struggling most to get by presently.

The issue of poor service delivery and its impact on an area’s economy came under public scrutiny during Clover’s much-publicised exit from Lichtenburg to Queensburgh near Durban in KwaZulu-Natal due to service delivery challenges on the part of the Ditsobotla Local Municipality.
18 Oct 2021 12PM English South Africa Business · Daily News

Other recent episodes

The CA of the future: how AI Is changing accountancy

Stan Kobrin, Chief Technology Officer at Makosi, explores how AI is moving accountants beyond back-office finance and into strategy, and why smaller firms may be better positioned for technological change.
10 Sep 9AM 6 min

Inside the flyover that divided the aviation world

South Africa’s aviation reputation came under global scrutiny when Airlink performed a low altitude flyover over Cape Town’s DHL Stadium ahead of the Springboks’ second clash with the All Blacks. The manoeuvre divided aviation experts and sparked fierce debate online. Cutting through the noise, legendary South African airshow commentator Brian…
31 Aug 8AM 10 min

‘Not much room left for mistakes’ – investment analyst on the SPAR Group

The SPAR Group is under increasing pressure to deliver, with little room left for further mistakes. Anchor Capital investment analyst Stephan Erasmus tells the OFM Business Hour that the retailer is approaching its debt covenant limits and urgently needs to improve operating margins and demonstrate stronger financial performance. His comments…
28 Aug 6AM 7 min

UFS Business School: Your partner in lifelong learning

The UFS Business School is your partner in lifelong learning, offering flexible, industry-relevant opportunities that help individuals and organisations grow, lead and succeed. Taking you through the varied programmes and upcoming engagements is Prof MacDonald Kanyangale, Dr Cornelie Crous and Adele Louw from the UFS Business School.
5 Aug 4AM 10 min

Trusted Employer Scheme's second window opens

Government has officially opened the long-awaited second window for corporate employers seeking to become part of the Trusted Employer Scheme (TES), expanding the programme to create a faster, more predictable pathway for companies seeking to bring critical international skills into the country. Marisa Jacobs, Managing Director at Xpatweb, says this…
30 Jul 9AM 13 min