DOMESTIC WORKER SECTORAL DETERMINATION

ECC REPORT

INTRODUCTION Domestic workers represent a particular

vulnerable group of workers DOL interventions are therefore necessary

and appropriate. The interventions needed to achieve the

following outcomes

-Addressing the most urgent needs

-Improving the livelihoods of those worst off

-Retention of jobs

-Recognising the value of domestic work in

society

Considerations

Report of Department of Labour.

Subsequent representations.

Additional research information obtained on areas of focus such as demarcation to present wage levels

Representations

Received 138 written representations grouped as follows:

Proposals on conditions of employment

Proposals on demarcation

Proposals indicating that the wages are too high

Proposals indicating that wages are too low

Proposals indicating that wages are fair

Proposals on tax incentives

General comments and proposals on the content of the

report

Focus Areas

1. Conditions of employment

2. Scope & Demarcation

3. Minimum Wages

4. Criteria

Conditions of employment

Agreed with DOL that conditions should be in line with BCEA

Proposed variations in the following areas

- Overtime

- Night Work

- Accommodation

- Record keeping

Overtime

Implementation of flat rate system too complex

Extension of 15 hour overtime per week – fine on condition that it is reflected on pay slip

Night Work Representation: Standby allowance higher – R20 –

R30 per night Word ‘sleep-in changed to standby. Term sleep-in

usually refers to domestic workers who sleep on premises

Support for notion to provide for standby on condition that:

Number of standby incidents is limited to avoid exploitation

Allowance increased to R20 per night (Equal to 3 hours overtime)

First 3 hours of physical work unpaid

Accomodation

Highly debated issue – majority of submissions felt 25% deduction was too high

Commission agreed that 25% deduction was disproportionately high

Poor people do not spend such high % on housing

Recommended 10%

Record Keeping

Representations raised concerns around feasibility of keeping attendance register.

Initially recommended implementation of an attendance register.

Decision reviewed and payslip introduced as means to regulate attendance

Demarcation

Representation classified into two categories:

In favour of DOL proposal

1. Method of town classification 2. Non-consideration of factors such as unemployment, standard of living etc.

3. Location should be a deciding factor

Not in favour of DOL proposal

Demarcation (2) Commission requested NDB to revisit approach

Explore the average household income in particular geographical areas

Acknowledge that a simple urban/rural distinction is not an accurate reflection of overall living standards

Used Census 1996 data to determine average household income

Demarcation (3)

Determined 3 bands

Area A

Area B

Area C

R24 000 + Per annum = 52 % households

R18 000 + R24 000 Per annum = 12 % households

Less than R18 000 Per annum = 36 % households

Process for arriving at bands - arbitrary

Demarcation (4)

Agreed single minimum wage is the ultimate goal

This will be achieved in time

Reduced areas to 2

- Since area B represents only 12% of sample households & the gap between area B and C is relatively small

- The high wage differentials between A & B not morally justifiable

Minimum Wages

Representation – Wages are too high

Mainly from pensioners who receive grants

Objected to 7% increase on the basis that government refused to give such increases to own employees

Criteria such as skills and qualifications should play a role.

If payment in kind is not included employers might cut down on extras such as food.

Warned about job losses

Minimum Wages (2) Representation – Wages are too low

Majority of representations from workers and theirorganisations

Main argument centered around the value of domestic work

Argued against wage differentials because the cost of living is the same everywhere

Proposal did little to improve social recognition

DOL analysis seen to take into account the employers differential Wealth and not that of DW.

Majority suggested wages between R800 –R1200 p.m.

Wages (3)

Other proposals

Increases: 10% + cost of living adjustment each year

Payment method: - Hourly rate welcomed

Higher rate for part-timers

Dismissal without exhausting the possibility of reduction of hours – legal offence

Tax incentive

All the submissions received were from employers

Tax rebate suggested which will improve compliance

Stressed – unfair not to allow a “defenceless” individual taxpayer to treat labour cost as an expense whilst businesses are allowed to do so.

Commission’s Views on wages 4 broad concerns listed

Calculations from which DOL recommendations are derived are based on monthly amounts, while proposals set wages on an hourly basis

Calculations assume implicitly a 45 hour week

Evidence suggest that Domestic Worker works shorter hours

Commission’s Views on wages (2)

Calculations include earnings of Domestic workers employed on farms

- Domestic workers on farms earn a lower wage – downwards pressure - 6% difference on rates

DOL report does not propose a diffrential wage for part timers which is norm in other sectors: temporary & casual workers earn a premium due to uncertainty of income

OHS Data suggest that Domestic Workers earn a premium for shorter hours.

The data presented in report relate to 2000 whereas the determination wiould only be applicable in 2002.

ECC’s Final Wage Proposal

Workers to be paid hourly

AREA A AREA B

HOURLY RATE

R 4,51

<27 hours per week

R 4.10

> 27 hours per week

AREA A AREA B

HOURLY RATE

R 3.66

<27 hours per week

R 3.33

> 27 hours per week

Increase

- 3 years

- 8% per year

- Conditional: CPIX 10+ Wage increase to be adjusted to match CPIX rate

- CPIX rate 6 weeks before 1/11

Payment in kind

No deductions allowed

Every Domestic worker should earn at least minimum wage irrespective of where he/she works or how many hours he/she works

Criteria

- Wages are too low and Domestic workers will not be able to meet the needs of their families and themselves

- DOL predictions regarding disemployment effect questioned

- Low wages will exert downward pressure on wages

- Poverty cut-off low (R391 per household)

- DOL failed to consider the gender dimensions to poverty

Representations

ECC views

Report’s simulation in respect of disemployment effect needed to be treated with caution

Domestic work is part of the informal sector – supply & demand forces could be different

Uncomfortable to recommend wages below old age pension levels

Inflation lower at time of report