South African farmers have started laying off labourers just two days after the government raised the minimum wage for the sector by 50 per cent in response to a wave of violent farm strikes, an industry official said on Wednesday.
The government hiked the base wage to 105 rand (US$11.86) a day on Monday but farm owners, most of whom are from the white minority, said they could not afford to pay their mostly black workers the increase and layoffs would ensue.
“Some of our farmers have already given notice to some of their workers because if they don’t it now, they will have to pay the remuneration according to the new wages, meaning an extra cost,” Louis Meintjes, president of commercial farmers group Tau SA, told Reuters.
“We can already talk of thousands of workers given notices that they will be let go.”
The new minimum wage comes into effect on March 1.
The job losses could spark a repeat of the violence in which police had to use rubber bullets and stun grenades to disperse protesting farm workers blocking highways and torching vineyards and warehouses in the agricultural belt east of Cape Town.
Chosen excerpts by Job Market Monitor from
via South Africa farm layoffs start after wage hike.
Related Posts
South Africa / New minimum to take effect from March 1
The new rate, R36 more than the current minimum wage of R69 a day, would take effect from March 1. “The new minimum wage… is R105 per day for employees who work nine hours a day, or R11.66 per hour, R525 weekly, or R2274.82 per month,” Oliphant told reporters in Pretoria. This new sectoral determination would … Continue reading »
South Africa / Farms accept minimum wage increase
Farmers accept that the minimum wage will increase. In addition farmers proposed that the parties jointly assess the nature and extent of ‘in kind’ benefits and how these should be accounted for in the wage structure. Whilst the affordability of higher wages may be a constraint, the broader policy environment which impacts on the sector’s profitability requires … Continue reading »




Discussion
Trackbacks/Pingbacks
Pingback: Czech Republic / Trade unions want higher minimum wage | Prague Monitor | Job Market Monitor - March 4, 2013
Pingback: Namibia / Union Urges Companies to Pay Minimum Wage | Job Market Monitor - May 23, 2013
Pingback: South Africa / Minimum Wage / 1 988 farmers seek exemption | Job Market Monitor - May 25, 2013