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Agri SA proposes more consultation on proposed national minimum wage

Agri SA proposes more consultation on proposed national minimum wage

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21st November 2016

By: African News Agency

  

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Agri SA said on Monday that it would consult widely across the agricultural sector regarding the proposed National Minimum Wage.

This comes after the National Economic Development and Labour Council (Nedlac) Advisory Panel on Sunday proposed a new national minimum wage rate of R20 an hour, or about R3 500 a month, after consulting widely with industry, labour and stakeholders.

Nedlac said the quantum of a national minimum wage would be applicable to all sectors of the economy.

The announcement was received with mixed reaction by political parties, labour unions and the public.

In a statement, Agri SA’s chairman of labour policy committee Neil Hamman said they were calling for in-depth research and consultation with all agricultural role-players, especially farmers in drought stricken areas as well as emerging farmers, given the vulnerability of the sector.

“Agri SA considers the labour force in the agricultural sector of critical importance,” Hamman said.

“Whilst labour cost is a major cost driver, a contented labour force is equally essential for optimum production in the sector. Compromising the intricate balance between wages and the sustainability of farming enterprises will however result in unintended consequences such as job losses and mechanisation.”

Hamman said Agri SA welcomed the fact that struggling farmers would still have access to section 50 of the Basic Conditions of Employment Act that made provision for exemptions from ministerial determinations.

“We also welcome that the fact that the expert advisory committee recommended that lower mean apply to domestic and farm workers, depending on the circumstances,” Hamman said.

“The proposed secret ballot before registered unions embark on a strike is also welcomed. Agri SA also seeks active participation in the proposed Decent Work Commission which will be responsible for minimum wages as well as employment conditions and employment equity.”

However, Hamman said Agri SA remained concerned about the impact on employment and profitability of the agricultural sector.

He said government and the business sector should work together to create a conducive business environment in which businesses and agricultural enterprises in particular can flourish.

Meanwhile, the Institute of Race Relations (IRR) said the proposed minimum wage would entrench structural unemployment.

“The proposed new minimum wage of R3 500 per month will do little to improve the circumstances of existing workers, while further limiting access to the labour market for unemployed people,” IRR analysts said.

“On balance, it looks like the drafters of the new minimum wage have simply been playing politics, with no regard for the interests of the economy or the unemployed.”

Edited by African News Agency

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