Agricultural sector to deliberate on new minimum wage for farm workers

The agricultural sector will meet on Thursday to find solutions to the new minimum wage as the 16% increase for farm workers will put jobs at risk and hinder the economic growth of the industry, says the sector.

Labour Minister Thulas Nxesi this week gazetted the new minimum wage of R21.69 per ordinary hour, increasing from last year’s R18.68 for farm workers.

Domestic workers saw a minimum wage of R19.09 per hour, but those working on farms were regarded as farm workers, meaning they would have to receive the same wages.

Despite the sector’s economy outperforming others during the pandemic, it was severely impacted by the imposing of a tobacco and alcohol ban, while several provinces still faced droughts, said agricultural association AgriSA.

Wage increases would not be sustainable as the sector was made up of mostly small- and medium-scale farmers, with largescale commercial farmers only contributing a small percentage to the industry.

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While these inputs were made to the labour department, they were seemingly ignored, said AgriSA executive director Christo van der Rheede.

“Subsectors such as the wine industry have endured two bans on sales, while tobacco, wool and barley producers were
not declared essential services during the hard lockdown and their activities were seriously hampered during the last
months,” he said.

These industries are yet to recover from losses suffered during the hard lockdown.

“Farmers in drought-stricken areas such as the Northern Cape, Eastern Cape and Western Cape continue to face major financial challenges… a 16% increase will undermine the economic growth and contribution of a sector that
faces serious challenges amidst the pandemic.”

Government’s “short-sighted” decision prompted farmers organisation TLU SA to call for an urgent meeting with stakeholders tomorrow.

READ MORE: Pay farm workers a decent living wage

TLU SA president Henry Geldenhuys reached out to AgriSA, Southern African Agri Initiative, employers organisation LWO and major farmers to find solutions without compromising the sector’s productivity and jobs.

“Despite the valuable and realistic inputs from various role players in the agricultural sector, the increase was pushed through,” said Geldenhuys.

“We are sensing an overall serious concern that the short-sighted action from government will cause the agricultural sector a lot of damage.

“It is critical that we approach this problem collectively and in the interest of sustainable agriculture.”

The new wage comes into effect from 1 March.

– rorisangk@citizen.co.za

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