'National minimum wage not the answer'

The Chamber of Mines says a national minimum wage in the industry will not reduce inequality.

FILE: The Chamber of Mines says a national minimum wage in the industry will not reduce inequality. Picture: Govan Whittles/EWN.

CAPE TOWN - The Chamber of Mines says a proposal to introduce a national minimum wage in the industry will not automatically reduce inequality.

It says a "one-size-fits-all" approach in the labour market could be difficult to implement.

A parliamentary committee is looking into the feasibility of the national minimum wage.

The Chamber of Mines's Elise Strydom says government may need to explore other avenues in its efforts to reduce inequality.

Strydom says they do not believe a national minimum wage will alone achieve government's goal of eradicating poverty.

"We must remember a minimum wage is only one of a range of mechanisms to address inequality."

The Chamber of Mines has told Parliament another way to close the wage gap could be to pay the lowest earning employees more and the high earners less.

The parliamentary committee says big business is seemingly not very impressed with the idea while other employers are undecided.