Agriculture News South Africa

Public hearings on minimum wages for farm workers

Free State Agriculture's (FSA) team will represent their members at three public hearings in the province on minimum wages for farm workers from 12016/17 to 2018/19. FSA will present a report recommending that the status quo be maintained and that increases be inflation coupled for these three financial years. The hearings will take place in Bothaville on 9 September 2015, in Welkom on 10 September 2015 and in Bethlehem on 11 September 2015.

In the proposal, the organisation also requests that the Employment Commission, the Department of Labour and government should assist the sector so that the sector can assist government and the country. According to FSA, these three years should be used to create a turnaround strategy and develop a win-win model for the sector as a whole.

Government has a responsibility to create an enabling environment by:

• Ensuring that a value chain approach is implemented.

• Ensuring that the productivity and consequently the international competitiveness of the sector improves.

• Ensuring that relevant training and development takes place in the sector in cooperation with the different SETA's that exist, which will improve the employability and dignity of the workers.

• Ensuring the development of a system of categorisation of job descriptions within the agriculture sectoral determination.

• Ensuring access to serviced plots within the urban edge (towns) with full title, creating access to basic municipal and social services for e.g. schools and medical services, etc. This can further contribute to a more dignified workforce, reducing the need for possible evictions.

Farmers can't afford excessive wage increases

FSA's report focuses on the fact that the number of farmers in the country and province is declining. A report, The economic performance of agriculture in South Africa since 1994: Implications for food security, that was published by N. Vink and J. van Rooyen in 2009, highlights that 51% of farmers in the country records an annual gross income of R300,000 or less. Many farmers will thus not be able to afford excessive wage increases, especially if it is taken into account that minimum wages for farm workers increased with 400% since 2003. "That in itself is not a problem, but product prices (that is paid to farmers for their products) did not increase at the same margins," according to FSA's report.

Due to the economy as well as the affordability of the agriculture sector, FSA requests that the sector be exempt from the proposed national minimum wage currently under discussion.

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