INFORMATION CONCERNING THE PROGRESS, AND AGRI SA'S INVOLVEMENT IN THE LABOUR-UNREST IN THE WESTERN-CAPE

Course of events

Agri SA, together with other members of the Agricultural Sector Unity Forum (ASUF), namely Agbiz, Afasa, TAU SA and representatives of employer organisations (AEO and the Cape Employer Organisation), represented agricultural employers during discussions with farm workers on the review of the sectoral determination. The Commission for Conciliation, Mediation and Arbitration (CCMA) facilitated the discussions. 

During the first meeting, Labour's grievances and demands were tabled. These are as follows:

• A minimum daily wage of R150 with effect from 1 December 2012;
• A back-to-work" allowance;
• The release and exemption from prosecution of workers who were arrested during the unrest; and
• A list of workplace and other grievances not directly related to the sectoral determination.

Agricultural employers held the following views:

• They do not share the expectation created that the sectoral determination could be finalised by 4 December 2012;
• Agricultural employers do not have a general mandate to negotiate on an immediate adjustment in the minimum wage or a future minimum wage;
• Farmers are encouraged to pay more than the minimum wage where possible and to negotiate with their workers in this regard at farm level;
• The sectoral determination must be reviewed within the legal framework of the Basic Conditions of Employment Act, towards which inputs would be made;
• An overhasty and ill-considered process could hold unintended consequences for all role players in agriculture;
• Any amendment to the sectoral determination must take into account the findings of independent research on the affordability of wage proposals and the impact thereof on the sector.

After further discussion, it was agreed that:

• Agricultural employers and labour would receive feedback on research conducted by the Bureau of Food and Agricultural Policy (BFAP) on the influence of various wage-level scenarios on agriculture. Such findings will also be forwarded to the Employment Conditions Commission (ECC) which would then submit recommendations on a sectoral determination to the Minister of Labour;
• A facilitating group would attend to complaints concerning intimidation, victimisation and similar matters; and
• Labour will furnish the agricultural employers with a formal list of other grievances.

Agricultural employers were also asked to revisit their mandate to consent to an interim wage adjustment. Agri SA and others summarily confirmed that a minimum wage was merely set as a minimum and that negotiations for a higher wage should take place at farm level so that the practices and circumstances applicable to a specific farm can be taken into account. 

During a follow-up meeting last week, the discussion group focused mainly on the demand for an urgent adjustment to the minimum wage. The agricultural employer group insisted that they did not have a mandate to agree to this and that it would be advisable to wait for inputs from the BFAP study and the results of the formal review process. This was unacceptable to labour representatives, who left the meeting with an ultimatum that they would go ahead with the strike if agricultural employers fail to place a substantive offer on the table by six o'clock on Saturday, 1 December 2012. A statement released by agricultural employers in this regard was distributed by Agri SA on 30 November 2012 (Statement on review of sectoral determination for agricultural sector).

And yet a number of individuals from the affected commodity branches had held discussions with Cosatu during the relevant weekend regarding possible settlement options. This meant Agri SA had to acquaint itself with the nature of the proposals discussed and to reaffirm its mandate with the relevant commodity branches. This culminated in discussions with the Minister of Trade and Industry, Rob Davies, and Tony Ehrenreich of Cosatu on 3 December 2012 in Paarl. It seemed that government aid was not an option to assist farmers in the short term should they spend money on labour costs; however, assistance would be available to support the longer-term profitability of agriculture. Agri SA's media statement regarding these discussions was distributed on 3 December 2012 (Choices on labour unrest decisive for South Africa).

During the above-mentioned discussions, thoughts were exchanged as to what would be possible or impossible for organised agriculture to offer as basis for a settlement besides its view that sound information should be used in the formal review process of the sectoral determination. Take a look at the content of the relevant media statement. It reiterates the viewpoint that Agri SA has held throughout in this regard. Minister Davies and Tony Ehrenreich took note of this during the discussion on 3 December and also made it available to Minister Tina Joemat-Pettersson.

Is there an agreement?

After the above-mentioned discussions, Agri SA did not participate in any further discussion with ministers or trade union representatives. For this reason any announcement of a settlement or agreement would amount to a viewpoint adopted without the knowledge and consent of Agri SA. This includes the following: 

• No agreement was reached regarding any minimum wage level. It remains each farmer's right to negotiate with his workers regarding any remuneration in excess of the minimum wage based on his particular circumstances.
• It was not agreed that trade unions could act as intermediaries in respect of wage negotiations at farm level.
• It was not agreed that a farmer should ‘open' his books for workers and trade union representatives should he be unable to meet wage expectations.
• It was not agreed that the CCMA could fulfil a new function in this regard at farm level, except what is already covered by its mandate.
• Agri SA was never consulted on the date of 9 January 2013 by which wage negotiations at farm level should be completed.

Agri SA conveyed this view unambiguously to Minister Tina Joemat-Pettersson before her media conference on 5 December 2012 and requested her not to quote Agri SA incorrectly, creating expectations that are not viable and which we may have to repudiate.

Statement issued by Agri SA, December 7 2012

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