Minimum wage increase plus load-shedding puts food security at risk: Agri SA

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.”

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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