The Labour Court has rejected Crown Household’s attempt to circumvent minimum wage laws. Following the ruling, five female workers, who received as little as R500 a month, will now receive their rightful compensation, marking a significant victory against workplace exploitation.
David Dickinson of Lawyers for Human Rights (LHR), an attorney representing the workers, expressed concern over the broader implications of such tactics, stating, “The case illustrates the unfortunate practice by many companies to manipulate the law in order to avoid their legal responsibilities to pay the national minimum wage. Not only is this denying workers their basic rights, but it is also abusing the important role of our courts.”
The case revolves around Crown Household’s controversial “piece work” payment system, which compensated the workers based on their output rather than a standard salary. This approach, intended to circumvent the minimum wage legislation (currently set at 25.42 rand per hour), culminated in one worker receiving only R500 for an entire month of work in December. The overwhelming burden of providing for their families fell squarely on the shoulders of these women, who are often the sole breadwinners in their households.
Faced with this blatant exploitation, the affected workers sought help from the Casual Workers Advice Office and LHR. Together, they presented their case to the Commission for Conciliation, Mediation and Arbitration (CCMA), which ruled that Crown Household’s “piece work” model was unlawful and ordered the company to pay the owed wages.
Despite the clear CCMA ruling, Crown Household’s response was to seek the Labour Court’s involvement to delay payment, arguing that the matter was urgent. The Labour Court, however, deemed the application frivolous and not deserving of urgency, thereby placing the responsibility back on Crown Household to comply with the original ruling. Additionally, the Court ordered costs against the employer, sending a powerful message that such malpractice will not be tolerated. Kayan Leung of LHR condemned the employer’s actions, remarking, “It is repugnant of employers to abuse a system and exploit working-class women who work difficult hours simply with the aim to provide for their families.” The Labour Court’s decision not only reaffirms the importance of the minimum wage law but serves as an important reminder of the ongoing struggle for workers’ rights in South Africa.
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1 Comment
This doesn’t make sense. Even at minimun wage of R25.42. If you work a full 8 hours for 3 days in December, the wage is about R550 after UIF since the gross income is below tax. In December, casual workers usually don’t have work because people are on holiday most of the time. So it’s highly likely that they might work 3 days.