Agri SA cautious over the National Minimum Wage Act 

30 May 2018

Agri SA has noted with caution that the National Minimum Wage Act, together with the Labour Relations Amendment Act and Basic Conditions of Employment Act, was approved by Parliament yesterday. 

“The agricultural sector is very complex, considering that the vast majority of farming operations can be considered SME’s, many of whom are already loss-making through a combination of drought conditions and low international commodity prices,” said Neil Hamman, chairman of Agri SA’s Labour and Development Centre of Excellence. “Agri SA remains cautious and is advising stakeholders to also exert caution as to the effect the National Minimum Wage will have on financially vulnerable farming operations.”

The implementation date of the Minimum Wage is yet to be determined.

The National Minimum Wage Act is, however, a step towards certainty.  “We are glad that our sectoral determination is still there, and we welcome the formation of the National Minimum Wage Commission, which will have the responsibility of determining the National Minimum Wage, going forward.”

Agri SA will focus on ensuring that all its members are aware of their rights and responsibilities in terms of the Act. Agri SA has excellent relationships with the Department of Labour and the CCMA, who will have to enforce the legislation.

Issued by Neil Hamman, Chairman: Labour and Development Centre of Excellence, Agri SA, 30 May 2018