Farm worker sector applications for exemption received by the Department of Labour since 1 March 2013
7 Mar 2013
Despite claims to the contrary, a number of farmers have taken up the offer to apply for exemption to the Minister of Labour from the R105 a day wage for farmworkers as set out in the new sectoral determination that came into effect on 1 March 2013.
This follows the February 4 announcement by Minister Mildred Oliphant, setting out a new level of the minimum wage for the farmworker sector in South Africa after a long and extensive consultation process with all stakeholders.
Subsequent to the announcement of the new level of the minimum wage by the Minister, the department was informed by AGRI SA that farmers in Limpopo and Mpumalanga intend to retrench about 2000 workers - despite the offer made that those who cannot afford to pay the prescribed wages can apply for exemption. To date, the department has received 918 applications - with most of the applications received after 1 March 2013 which could delay the finalisation of the applications before the end of March 2013.
The following table reflects the number of applications received:
Currently the department is capturing the applications received and also requesting outstanding information from farmers. Also as part of processing the applications, the department is further granting provisional approval to farmers to pay what has been agreed to during the consultation process with the workers provided that the agreed amount is more than R75, 31 per day which would have been the new wage as from 1 March 2013 in terms of the reviewed sectoral determination.
It should also be mentioned that whilst farmers have submitted applications for exemption arguing that they cannot afford the new level of the minimum wage, the department has also through the Public Employment Service Programme received information that farmers in Limpopo; Mpumalanga; and Western Cape have submitted applications to employ foreign labour.
The following reveals the number of applications received for employing foreign labour:
When processing the applications for exemptions received, the department will also be taking the application for foreign labour employment into account in ensuring that South African labour is not replaced with foreign labour. Furthermore, the department intends to engage with those farmers applying for foreign labour to discuss the possibility of absorbing workers from those farmers intending to retrench.
Statement issued by the Department of Labour, March 7 2013
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