The impact of minimum wages on human resource management practices in the hospitality industry: a case study of selected firms in Polokwane, Limpopo Province

Abstract

This thesis sought to identify and isolate the impact of the minimum wage in the hospitality industry of Polokwane. To achieve this, qualitative research methods were used. These methods enabled an in-depth understanding of minimum wages. Thus in-depth, semi-structured interviews were conducted as they provided detailed information by enabling the researcher and the participant to have an informal, but expressive conversation about the minimum wage. Contrary to the assumptions of orthodox economics, which claim minimum wages create a 'shock' resulting in job losses, this research found that the minimum wage was absorbed causing few disruptions in existing work and employment relations in the selected establishments. This capacity to absorb the minimum wage is largely the outcome of informal labour relations policies and practices.