Farmworkers in the province will be entitled to a minimum wage of R21,69 per hour. The 16% increase brings farmworkers’ wages in line with the national minimum wage.
Thembelani Nxesi, Minister of Employment and Labour announced an adjustment of the national minimum wage for 2021 on 8 February. The increase will come into effect from 1 March 2021. The agricultural wage bill has grown to above 30% of production costs and this cost will have to be passed onto the consumers, making food unaffordable to those the minimum wage is trying to assist.
This wage increase will have long lasting effects on Mpumalanga’s economy and rural economies. The 16% increment might result in job losses in the province. There are mixed reactions to this announcement as workers are welcoming the increase while associations and farmers feel differently.
A Nkangala farm manager who refused to be named on record spoke to the Highveld Chronicle saying that, “This wage increase is not well thought of and according to my knowledge, there were no proper consultations. COVID-19 has negatively affected our farming operations and I do not think that the farm owner will comply with this announcement because I do not know where that money will come from. And I know many farmers in this area are in similar situations. This might result in people losing their work.”
A farm worker on the same farm, Siphiwe Dhliwayo, also spoke to the Highveld Chronicle saying, “The increase to our national minimum wage as farmers is long overdue. We deserve and are expecting to get it from 1 March. COVID-19 pandemic has left most of us desperate and in need of assistance. It is unfortunate that our farm managers and employer might not comply with this. In such situations, what will we do?”
Christo van der Rheede, CEO of Agri SA, has said that this drastic increase could result in a crisis for farmers that would have far reaching impacts on the agriculture sector. “The question is whether the commission wants to stimulate job creation or whether it has become instrumental in the worsening of the unemployment crisis in the country. The pandemic continues to erode the economy and the decision to increase the minimum wage by 16% does not make sense,” van der Rheede added.
Agri SA has brought the matter to the department’s attention that the agricultural sector is a multifaceted sector that consists of mostly small scale and medium scale farmers, with largescale commercial farmers only making up a small percentage of the industry. “These small scale and medium-scale farmers have already endured the effects of recent severe drought, compounded by the effects of the pandemic and it is disappointing that these crucial factors were clearly not considered,” Agri SA says.
The Covid-19 pandemic continues to create unemployment in local communities in the province and people are suffering.
