DOMESTIC WORKER SECTORAL DETERMINATION

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DOMESTIC WORKER SECTORAL DETERMINATION

• ECC REPORT

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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
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Considerations

• Report of Department of Labour.

• Subsequent representations.

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

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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
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Focus Areas
1. Conditions of employment
2. Scope Demarcation
3. Minimum Wages
4. Criteria
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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
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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

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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

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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

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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

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Demarcation

• Representation classified into two categories

In favour of DOL proposal
Not 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
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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

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Demarcation (3)
Determined 3 bands
Area A
R24 000 Per annum 52 households
Area B
R18 000 R24 000 Per annum 12 households
Area C
Less than R18 000 Per annum 36 households
Process for arriving at bands - arbitrary
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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
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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

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Minimum Wages (2)

• Representation Wages are too low

Majority of representations from workers and
their organisations

• Main argument centered around the value of
  domestic work

• Proposal did little to improve social recognition

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

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

• Majority suggested wages between R800 R1200 p.m.

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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

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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.

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Commissions 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

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Commissions 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.

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ECCs Final Wage Proposal
Workers to be paid hourly
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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
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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

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Criteria
Representations
- 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
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ECC views

• Reports 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