MyPE

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Minister Nxesi must withdraw extension of bargaining deal that will destroy salons

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Dear MyPE

Minister of Employment and Labour, Thulas Nxesi, must withdraw the collective bargaining deal that he extended to “non-parties” in the beauty and haircare sector yesterday.

The sector, which has been shuttered since the beginning of lockdown and still cannot open for business, is already on its knees.

The Democratic Alliance (DA) has taken the matter to court, and is fighting to have the ban and criminalisation of “personal care” services (which includes hairdressers and beauticians) declared invalid and unconstitutional. The matter will be heard by a Full Bench of the High Court on 22 June.

In the interim, however, Minister Nxesihas effectively dealt the sector a death blow. His latest move will destroy the livelihoods of hundreds of thousands of employers and employees who work in salons, barber shops and personal care establishments.

Yesterday, Minister Nxesi extended a bargaining deal reached in the National Bargaining Council for the Hairdressing, Cosmetology, Beauty, and Skincare Industry in March to non-parties. This means that the agreement will be extended to all employers and employees in the industry as of 22 June.

The agreement makes provision for increases in minimum salaries for specific classes of employees, depending on the location of the salon. The agreement bans wage reductions and demands an “ex gratia” bonus payment, by all employers, of 5.5% of the minimum wages established in the agreement.

Most small business owners in the sector cannot afford to give effect to these demands. They will be bankrupted by them. They have had no income for three months. They are already struggling to keep their heads above water. And now, Minister Nxesihas left them to sink and drown.

The Minister of Employment and Labour should immediately withdraw the extension of this collective bargaining agreement to non-parties.

Going forward, the DA will push for legal exemptions for small and new firms from collective bargaining agreements to which they are not party, while rebalancing collective bargaining to ensure small and new firms are better represented.

Regards

Dr Michael Cardo MP
DA Shadow Minister of Employment and Labour

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