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

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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

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