/ 6 March 2006

CCMA: Wage hike not main driver in farm layoffs

An increase in minimum wages for farm workers — introduced on March 1 — is not the main reason for dismissals in the agricultural sector in Mpumalanga.

This is according to Glen Cormark of the Commission for Conciliation, Mediation and Arbitration (CCMA), who also noted that there were 600 cases of unfair dismissal in the sector since last April. This is almost 10% lower than what was reported for the previous comparable period, he added.

“Most of these unfair dismissal cases related to theft, misconduct, poor performance and incapacity,” Mpumalanga-based Cormark said.

“Farmers are not laying off their employees because of the increase. If anything, their introduction will bring about some stability in the sector. As CCMA we do not see people losing jobs as a result of the minimum wage and haven’t seen a spike in the number of cases reported,” he continued, adding that the move augured well for transformation especially given that farmers were embracing it.

The minimum wage prescribed for urban areas is R994 per month while it stands at R885 for the countryside. From March 2007 workers will earn R1 041 and R989 in urban and rural areas respectively.

In 2008 farm workers across South Africa will earn a minimum of R1 090 per month.

Many farmers are happy with the newly introduced minimum rates, Labour Minister Membathisi Mdladlana said.

“The majority of farmers have welcomed the minimum wages, a clear indication that it is not the scourge it has been made out to be,” he added. – I-Net Bridge