Employment conditions commission

REPORT OF EMPLOYMENT CONDITIONS COMMISSION 2013

REPORT OF THE EMPLOYMENT CONDITIONS COMMISSION TO THE MINISTER OF LABOUR ON THE FARM WORKER SECTOR, SOUTH AFRICA
2013

Table of Contents

Chapter One 4

1.Background 4

5

1.1Collective bargaining 5

1.2Issues for discussion 7

1.2.1Wages 7

1.2.2Agriculture economic analysis 7

1.2.3Disciplinary action/dismissals/intimidation/evictions 8

1.2.4Other demands put forward by labour 8

1.3Terms of references 8

1.4Methodology 9

1.4.1 Phase One – Administrative aspects 9

1.4.2 Phase Two – Consultation with stakeholders 10

1.4.3Phase Three – ECC Process 11

1.4.4 Phase Four – Publication of the new sectoral determination 11

1.5 Structure of the report 12

Chapter Two 12

2.1Sector Profile/ Agricultural economy 12

2.2Trends in the expenditure: 2009 to 2011 16

2.3Private consumption expenditure on agricultural products 17

2.4Review of agricultural market 17

2.4.1Grain market review 17

2.4.2Fruit and vegetable market review 19

2.4.3Meat Industry Review 20

2.4.4Eggs and dairy Industry Review 22

Chapter Three 23

3.1Inputs from Agri SA 23

3.1.1Impact of minimum wage and methodology of determination by AgriSA 24

3.1.2Policy imperatives by AgriSA 24

3.2Inputs from “Landbou Werkgewers Organisasie” (LWO) Employers Organisation. 25

3.3Submission from Transvaal Agricultural Union of South Africa (TAUSA) 28

3.3.1Collateral privileges. 28

3.3.2Unrealistic expectations and the fabrication of false perceptions. 29

3.3.3Mutual trust. 29

3.3.4Recommendations by Transvaal Agricultural Union of South Africa 29

3.3.4.1Individual exceptions. 29

3.3.4.2Open labour market. 29

3.3.4.3Economic study. 30

3.3.4.4Service delivery. 30

3.4Submission from Kwanalu 31

3.5Inputs from Agri East Cape 32

3.6Inputs from Free State Agri 33

3.7Inputs from the Cape Agri Employers’ Organisation (CAEO) 35

3.8Submission from Suiderland Plase in Tygervalley 38

3.9Inputs from Agri Limpopo 39

3.12Submission from CANEGROWERS 46

3.14Inputs from Bronkhorspruit employers 52

4Inputs from trade unions and workers 53

4.1Inputs by the Food and Allied Workers Union (FAWU) 53

4.1.1New minimum wages level: 53

4.1.2Provident Fund: 53

4.1.3Social Conditions: 53

4.1.4Conditions of Employment: 54

4.2Inputs by the Labour Research Service (LRS) 55

4.3Submission from the East Cape Agricultural Research Project (ECARP). 57

4.4Inputs from farm workers in Worcester 60

4.5Inputs from farm workers in Limpopo 60

4.6Inputs from farm workers in Eastern Cape 61

4.7Inputs from farm workers in Free State 61

4.8Inputs from farm workers in Mpumalanga 62

4.9Inputs from farm workers in North West 62

4.10Inputs from farm workers in KwaZulu-Natal 63

4.11Inputs from farm workers in Gauteng 63

4.12Inputs by workers in Grabouw 64

4.13Inputs by workers in Paarl 64

4.14Inputs received from Workers Against Regression (W.A.R) trade union 65

4.15Inputs received from AL JAMA-AH 66

4.16Inputs by workers in De Doorns 66

4.17Inputs by workers in Robertson 67

4.18Inputs by workers in Oudshoorn 67

4.19Inputs by workers in Vredendal 67

5Recommendations of the Department 68

Chapter Four 72

4.2Creation and the retention of employment 74

4.3The cost of living 75

4.4Food Security Modelling 76

4.5Poverty alleviation 78

4.6Operation of SMMEs and new enterprises 78

REPORT OF THE EMPLOYMENT CONDITIONS COMMISSION ON THE

INVESTIGATION INTO THE FARM WORKER SECTOR, SOUTH AFRICA

Chapter One

As directed by you, the Employment Conditions Commission (ECC) has pleasure in presenting you with a report on its investigation into the farm worker sector.

1. Background

The current sectoral determination for the farm worker sector was last reviewed in 2012 and provided for a three year wage dispensation which would have lapsed in February 2015. In November 2012, farm workers in the Western Cape went on strike demanding R150 per day as the minimum wage. As a result, the CCMA¹ intervened to tried to resolve the matter but they were not successful, partly because employers argued that the strike was politically motivated and unrelated to the minimum wage. This made an intervention by the Department of Labour difficult as there was no indication that the strike could be resolved through engaging with the parties. On 15 November 2012, the Acting Minister of Labour published two notices in an attempt to get parties together to negotiate a settlement. The two notices related to the intention to cancel the sectoral determination and also the announcement to review the minimum wages in the sectoral determination.
Subsequent to the publication of the notices, the Department of Labour met with Agri SA² and other employer organizations to coordinate a process whereby parties would negotiate a solution to the strike. Prior to the commencement of the negotiation process, the Department also met with COSATU³ and other worker representatives organization to outline to them the process of reviewing the sectoral determination. During the meeting, COSATU and other organizations were also informed that it would not, in fact, be possible to review the sectoral determination before the 4 December 2012 as had been previously indicated by the Department. They were also informed of the two notices published in the government gazette by the Acting Minister, that the first notice announced the intention of the Minister to cancel the sectoral determination and that the second notice announced the review of the minimum wages in the farm worker sector. They were further informed that parties were given 15 days to submit written inputs.

1. Collective bargaining

In the spirit of promoting collective bargaining, the Employment Conditions Commission has always taken into consideration agreements reached by parties through voluntary bargaining processes. Many of the sectors regulated through sectoral determinations have established voluntary negotiating forums which negotiate conditions of employment including minimum wages and make a joint submission to the ECC for consideration prior to making recommendations to the Minister. In these sectors, representivity of workers and/or employers is too low to permit the establishment of a bargaining council. The objective of the Department in bringing the parties together was in the same spirit, i.e. that parties in the agricultural sector should attempt to make a joint submission to the Employment Conditions Commission when the sectoral determination is reviewed.

• 
  The negotiation meeting arranged by the Department was facilitated by the CCMA. The first meeting took place on 22 November 2012. The objective of the negotiation meeting was to try and ensure that parties at the forum make a joint negotiated and agreed submission to the ECC on the new level of the minimum wages prior to the ECC making its recommendations to the Minister. The parties who participated in the process were employer’s organizations led by AgriSA and employee’s organizations led by COSATU. The meetings were held under the auspices of the CCMA. On 22 November 2012, the following parties attended the negotiation meeting facilitated by the CCMA
  
• 
  AgriSA
  
• 
  Agri-Sector Unity forum
  
• 
  Afasa⁴
  
• 
  LWO employer’s organization⁵
  
• 
  AWETUC
  
• 
  Farm workers Dwellers Forum
  
• 
  Food Sovereignty Campaign
  
• 
  Women on Farms Project
  
• 
  Mawubuye Land Rights
  
• 
  United Democratic Front
  
• 
  Food and Allied Workers Union
  
• 
  Cosatu⁶
  
• 
  Cape Agriculture Employers Organization and
  
• 
  TAU-SA⁷
  

During the meeting the following was agreed to:

1. Overarching framework for conducting negotiations

1.1.1.1. The negotiations will be conducted within the prescription of the legislation framework as defined in the Labour Relations Act, of 1995 and the Basic Conditions of Employment Act 75, of 1997.

1.1.1.2 Parties agreed that there is a sense of urgency in finding a solution to the dispute, which also necessitates consideration of options outside of the legislative framework in the Basic Condition of Employment Act but that are within the Labour Relations Act.

1.1.1.3 That the challenges confronting the sector can be categorised into those that can be addressed in the short term and those that can be addressed in the medium to long term.

2.