Labour unrest in the Western Cape
Agri SA welcomes political leaders' recent disapproval of the disruptive and unlawful criminal behaviour by anarchists in the Western Cape agricultural wage dispute and Minister Oliphant's willingness to facilitate talks between affected parties which could resolve the impasse and lead to the calling off of the strike.
Agri SA and other national farmer organisations represented in the Agri-Sector Unity Forum (ASUF) earlier welcomed Minister Oliphant's decision to review the minimum wage as part of a sectoral determination process, in terms of the Basic Conditions of Employment Act, despite the present determination having only been implemented in March 2012.
An inflation coupled adjustment was due to be implemented in March 2013. Because of the announced review process, affected parties had and still have the opportunity to submit wage proposals to the Department of Labour which will be considered by the Employment Conditions Commission who has the responsibility to advise the minister on the adjustment of the minimum wage and related employment conditions.
Agri SA consistently emphasised that an informal national arrangement with respect to minimum wages was not a feasible solution and that the minimum wage should be what it is, namely only a minimum. We also urged farmers to pay their employees higher wages than the minimum, considering factors such as profitability, affordability, skill levels and experience.
Wages above the statutory minimum are not regulated by law and are negotiated on farm level between individual farmers and their employees. Independent research indicates that this is indeed the case. Wages tend to be generally well above R80 per day without taking into account benefits such as housing, electricity and water supply, transport as well as health and educational support.
Seasonality of production and temporary work opportunities are clearly factors contributing to the lower annual income for workers in certain regions and subsectors of agriculture.
It is an objective of the Basic Conditions of Employment Act to protect vulnerable workers in sectors where the characteristics of the sector make it difficult to establish wages and other conditions of employment by means of central bargaining. The reality of the applicable legal framework is that Agri SA cannot commit farmers to any wage agreement - it can only provide input into the process which leads to a sectoral determination, which eventually is a ministerial responsibility.
For this reason Agri SA and its affiliates participated in consultation meetings arranged by the Department of Labour, commissioned research on the implications of various minimum wage scenarios and held a number of meetings with government and labour representatives.
Research results indicate that the wage issue is indeed problematic and is embedded in serious socio-economic challenges such as under development, rural poverty, temporary and limited employment opportunities and inadequate service delivery to informal settlements.
Agri SA remains committed to dialogue with government and other interest groups that could lead to a policy and service delivery dispensation which is conducive to broad based growth and more quality employment opportunities. For this purpose Agri SA and other ASUF members approached the Minister of Labour for an urgent meeting to discuss processes which could end the present labour unrest in the Western Cape as a point of departure for further dialogue.
Statement issued by Mr Johannes Möller, President Agri SA, January 15 2013
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