Johannesburg - The agricultural industry has warned of job losses and mechanisation if the balance between wages and sustainability is compromised as a result of the proposed national minimum wage policy.
The sector employs some of the most vulnerable workers in South Africa, who have already suffered a major blow after the introduction of the sectoral determinations in the industry, although conclusive evidence has yet to be produced proving other factors are not at play.
Employer body Agri SA called yesterday for wider consultations on the implications of the proposed R20 per hour or approximately R3 500 minimum wage level.
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“Given the vulnerability of the sector, Agri SA is calling for in-depth research and consultation with all agricultural role-players, especially farmers in drought stricken areas, those who face stiff international competition, as well as emerging farmers,” Agri SA said.
The Nedlac appointed panel of experts, which investigated the amount and the system needed for its implementation, said it recognised that the sector along with domestic, welfare and care workers were vulnerable to disempowerment and were often poorly organised.
It proposed a longer phase-in time for the groups, saying farmworkers and forestry sector workers would be allocated 90 percent of the policy within its first year of implementation, while domestic workers would get 75 percent.
The panel advised that the adjustments be done on the basis of evidence, which if the proposal is accepted, would be undertaken by a Decent Work Commission, which would be mandated to research, monitor and adjust the level.
Penalties
It said it would also enforce the act, issuing financial penalties for non-compliance, although the panel advises this should only be effected after the initial phasing in period to allow for smooth transition.
Small business employees would enjoy benefits of the universal coverage in 2020. “The recommendation is that small businesses (those employing fewer than ten people) be given 18 months to adjust to the level,” read the report.
Despite the report also suggesting that struggling employers be exempted from the policy, Agri SA said it appreciated that farmers would still access section 50 of the Basic Conditions of Employment act that provides exemptions from ministerial determinations.
The Food and Allied Workers Union criticised the delayed phase-in proposal for domestic and agricultural sectors.
It said because these workers constituted about 2 million of the 47 percent of workers earning under R3 500 a month, it expected they would be included in the initial phase of the policy.
Fawu general secretary Katishi Masemola said that the level was also insufficient, committing to make representations to the wage committee that motivate for R5 700 as the minimum wage.
BUSINESS REPORT