Durban — The agricultural sector has said the recently announced minimum hourly wage increase of 9.6%, effective from March, is going to put a strain on the food security of the country and poses a threat to job security.
This after the Minister of Employment and Labour Thulas Nxesi made an announcement in the government gazette, on Tuesday, that his department would be implementing a minimum wage increase of 9.6% from the March 1.
Nxesi made the announcement just a day before Finance Minister Enoch Godongwana presented his Budget speech on Wednesday.
In a statement, Agri SA said the increase could threaten food and job security, and further strain the already hard-pressed producers.
Agri SA executive director Christo van der Rheede said as the sector battles to contain the costs associated with load shedding, crumbling infrastructure and high input costs, the increase will further undermine food security and put much-needed jobs on the line.
“The sector faces extreme difficulties, which on their own threaten food security in the coming years. Even though the farmers have previously been able to absorb the increases because of a sustained number of agricultural industries, unfortunately, that period is now over.”
Van der Rheede further said that notwithstanding the challenges that the sector faced, AgriSA made a submission proposing a CPI minus 2% increase in the national minimum wage.
Van der Rheede added that the proposal recognised the financial pressure on workers in this inflationary environment, but also addressed the reality of farmers’ inability to continue to absorb above-inflation increases.
He further said that the government had ignored the farmers' balanced position, with a resultant devastating blow not only for the agricultural sector, but also for consumers, who would eventually see the increase reflected in their food expenditure.
He added that AgriSA and its members were committed to preserving the country’s food security.
“For this reason, the organisation will continue to engage the government on the crucial challenges facing the sector. AgriSA’s hope is that its members will be heeded in future, so that farmers, workers, and consumers don’t pay the price for policy that undermines the sustainability of the sector and the nation’s food security,” Van der Rheede concluded.
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