Minimum wage aims to reduce wage inequality

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The National minimum wage, which comes into effect in May 2018, is a realisation of the demands of the freedom charter, and aims to reduce wage inequality while maintaining economic growth, says the new SA President.

Cyril Ramaphosa says there is potential to grow the economy and recover from the challenges of poverty and inequality.

He says he will set up a Presidential economic advisory council which will draw on the expertise and capability in labour, business, civil society and academia, in order to meet the challenges of these issues.

He said there is much potential in the Mining, Agriculture and Tourism sectors specifically.

Agriculture must be a job creator and could be the new “sunrise” sector he said. He pointed out that at present, Tourism in the country sustains 700 000 direct jobs, and is performing better than many other growth sectors.

But he said there is potential to double this, and no reason why the tourism industry cannot grow. He said government would enhance support for destination marketing, and take steps to reduce regulatory barriers in order to grow tourism industry.

The President outlined plans for the creation of a million work opportunities in the next three years. He said young people would be able to engage with leaders at the highest level in a youth working group created to challenge youth unemployment.

“The 4th industrial revolution is already upon us – and we urgently need to develop capability in science, technology and innovation fields.”

But he said he would also set up a Digital industrial revolution Commission in order to manage challenges of rapid advances in digital technology.