Agricultural sector as employer is under pressure

"It is extremely frustrating that Cabinet has approved drastic amendments to labour legislation despite unfinished negotiations conducted within Nedlac in this regard during the past year. While Agri SA, as part of the business community, participated in the process in good faith in order to seek workable solutions to highly complex issues, it appears from the published draft legislation that these inputs had simply been swept off the table due to political considerations," said Agri SA's president, Johannes Möller, in response to Labour Minister Mildred Oliphant's announcement on 22 March 2012 that amendments to the Labour Relations Act and the Basic Conditions of Employment Act had been approved by Cabinet.

Various elements of the draft legislation create concern and could impact very negatively on agriculture's job-creation potential, said Möller. These include:

• The fact that, despite a low level of trade union representation in an industry like the agricultural sector, the minister could recognise a union, which implies that such a union could gain easier access to farms as well as being entitled on membership fees to be deducted from wages; 
• That the minister will be able to determine increases - not only of minimum wages, but also of actual remuneration levels, even if these are higher than minimum wages;
• That the minister will be able to decide on methods for determining the value of a labour tenant's right to occupy or use part of a farm for the purposes of the Labour Tenants Act.
• Strict limitations which can be placed on the use of more flexible employment arrangements - the Minister will have the power to prohibit or regulate the use of sub-contracting, labour brokering and outsourcing.

Within BUSA and Nedlac, Agri SA clearly indicated the short, medium and long-term implications of certain proposals relating to the agricultural industry and job creation in general, including more onerous obligations in respect of compliance to legislation being placed on employers. There is consensus within the business community that it is essential to perform an objective impact analysis of the proposed legislation. Unintended consequences should be identified and evaluated before this legislation is subjected to the parliamentary process. 

"It is Agri SA's view that the draft bills, if passed, will undermine the objectives set in the National Development Plan (Vision 2030) with respect to job creation. This Plan has huge expectations regarding the job-creation potential of agriculture, but with the assumption that a favourable policy environment exists. The draft bills unfortunately make no contribution towards creating confidence among farmers with a view to increase employment opportunities," said Mr Johannes Möller. 

Statement issued by Agri SA President, Johannes Möller, March 27 2012

Click here to sign up to receive our free daily headline email newsletter