The agriculture sector is worried about the impact of a 9.6% increase in the minimum hourly wage gazetted by government.
“Any increase in costs will further strain already hard-pressed farmers. As the sector battles to contain the costs associated with load-shedding, crumbling infrastructure and high input costs, this increase will further undermine food security and put much-needed jobs on the line,” said Johan Wege, chairperson of Agri SA's centre for excellence on labour.
“The increase continues a trend of above-inflation increases for more than a decade.
“Whereas farmers were previously in a position to absorb these increases thanks to sustained growth in a number of agricultural industries, that period is over. The sector faces extreme headwinds.”
Minimum wage increase plus load-shedding puts food security at risk: Agri SA
Image: Werner Hills
The agriculture sector is worried about the impact of a 9.6% increase in the minimum hourly wage gazetted by government.
“Any increase in costs will further strain already hard-pressed farmers. As the sector battles to contain the costs associated with load-shedding, crumbling infrastructure and high input costs, this increase will further undermine food security and put much-needed jobs on the line,” said Johan Wege, chairperson of Agri SA's centre for excellence on labour.
“The increase continues a trend of above-inflation increases for more than a decade.
“Whereas farmers were previously in a position to absorb these increases thanks to sustained growth in a number of agricultural industries, that period is over. The sector faces extreme headwinds.”
Minimum hourly wage increased by 9.6% to R25.42
The increase, announced by labour minister Thulas Nxesi on Tuesday, pushes the basic hourly wage to R25.42 from next month.
The official inflation forecast is 5.4% for the year.
Agri SA had made a submission proposing a CPI minus 2% increase in the national minimum wage.
Wege said: “This 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. That government has ignored this balanced position is a devastating blow not only for the sector but also for the consumers who will eventually see this increase reflected in their food expenditure.”
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