Employment conditions commission

Inputs from Bronkhorspruit employers

In Bronkhorspruit, farmers indicated that it would be irresponsible for them to agree on R150 per day as demanded by the workers in the Western Cape. They indicated that the situation in the Western Cape is politically motivated and therefore should not influence the sectoral determination which was promulgated early in 2012. Regarding the determination of the new minimum wage, farmers proposed that the new wage should be pegged at CPI plus 1,5%. The CPI for the lowest quintile be utilized. Farmers indicated that should the wage be pegged at a higher level than what is proposed, it would lead to job losses as they strongly feel that by considering the CPI to determine new wages, already the cost of living issues have been addressed.

3. Inputs from trade unions and workers

1. Inputs by the Food and Allied Workers Union (FAWU)

FAWU in its submission and also presentations during the public hearings, made the following inputs.

1. New minimum wages level:

FAWU argued that the 'battle-cry' by farm workers for R150 per day is noble and needs to be supported. This will essentially mean doubling of wages If 21 days per to be used but most 'permanent' farm workers work a Six-day a week. FAWU argued that the word 'doubling' sounds scary but that this constituted a “doubling of virtually nothing”. So the R150 per day (assuming a-hour day) demand remain a clarion call for members to be raised during submission in public hearings.

2. Provident Fund:

FAWU indicated that, farm workers upon retirement or even just before then, die destitute with no retirement savings because only about 30 000 farm workers belong to retirement funds leaving about 320 000 of permanent workers and about 380000 of seasonal workers uncovered. Some lie for months in mortuaries and others are given pauper burials , especially those from outside the country, and FAWU even contributed to buried a few. Therefore, a compulsory contribution based Provident Fund, in which an employer and workers contribute, is a must-achieve in the review of Sectoral Determination.

3. Social Conditions:

FAWU indicated that a process is needed to negotiate a package of measures for a Social Plan in which housing/Shelter, Education, Health, Recreational and other facilities and services are provided to farm workers and dwellers, either on farms and In settlements next to those. Some, if not most, must be provided by Government, with cooperation of Farm owners in some cases, and some by Farm Owners themselves. For instance on housing, farm owners must give land for such human settlement by government to occur without claiming ownership of such piece of land and the same could apply to other services such as water, electricity, sanitation and amenities of recreational and burial purposes.

4. Conditions of Employment:

Knowing the weather and other conditions under which farm workers work, health and safety is paramount and protective clothing against all sorts of weather patterns is key. Also, safety against harmful pesticides and other chemicals in the sector, is an issue that needs to be addressed. Hours of work, or lack of daily fixed hours, and no overtime calculations is unacceptable as is the lack of rest or paid leave for farm workers. Child labour must be eradicated and there must be an enabling environment for the education for children. The lack of direct delivery of education on farms or in close proximity is unacceptable.
FAWU therefore submitted that in a short run, the wages must be increased, rather adjusted, by a figure speaking to the sentiments of R50 per day and not a R10 or R20. In a post-minimum wages adjustment period, expedited talks must unfold in the creation of a nation-wide compulsory contribution-based provident fund for farm workers, both permanent and permanently seasonal, such that this is part of the 2013/14 Sectoral Determination pronouncement and application. The same referred period must also address conditions of employment of health and safety and on leave and bonuses among others. Furthermore, FAWU proposed that during 2013, negotiations must be embarked on to conclude a Social Plan, in which a package of measures and their financing and roll-out is agreed on for implementation In the 2014/15 Sectoral determination and beyond.

The processes above and the platform of conducting those can be best handled at a national level (National Bargaining Council) while deviation, especially on the improvement side, can be tackled at local level (Local Bargaining Councils). The latter will allow for issues such as profitability of lack of it to be entertained should the need arise. The idea of a negotiated outcomes or collective even if it was to be trilateral in character.

2. Inputs by the Labour Research Service (LRS)

According to the inputs received from the Labour Research Service R150 is not enough but it is a good place to start on. Labour Research Service argued that in a household of five members, the current monthly minimum wage would result in an average of R10 a day for a person to live on (slightly less than one Euro and slightly more than one Dollar at current exchange rates). LRS indicated that while nominal wages have been rising from year to year there are at least three instances where the nominal percentage wage increase was below inflation resulting in a lower real wage. This means that there were three years when workers could actually afford to buy less than they were able to the previous year they became poorer. In the period of March 2007 to February 2008, workers were Rl0 per month poorer than in the previous year. The following year they lost a further R61 per month. Again In the year March 2011 to February 2012 they were R21 per month poorer than the previous year. Below is the table forwarded by LRS that shows how wages have been determined. According to LRS, the table also calculates inflation over a period of the wage so that the real wage can be determined.

Year/s	Monthly Minimum Wage	Minimum Wage increases	Minimum Wage increases	Inflation Increases: Mar- Feb	Real increase	Real Wage	Real Increase
	Rands	Rands	Percentage	Percentage	Percentage	Rands	Rands
1/03/06- 28/02/07	994.00			5.7
1/03/07-29/02/08	1041.00	47.00	4.7	10.6	-1.0	984	-10
1/03/08 – 28/02/09	1090.00	49.00	4.7	8.6	-5.9	980	-61
1/03/09 – 28/02/10	1231.70	141.70	13.0	5.9	4.5	1139	49
1/03/10 – 28/02/11	1316.69	84.99	6.9	3.7	3.2	1271	39
1/03/11 – 28/02/12	1375.94	59.25	4.5	6.1	-1.6	1295	-21
1/03/12 – 28/02/13	1503.90	127.96	9.3	6.5	2.8	1414	39
1/03/06 – 29/02/12		509.90	51.3	47.9	3.4	1074	80

According to the table, there were three years when workers could afford to buy less than they were able to the previous year.

LRS further argues that between March 2006 and February 2012 the nominal wage of a farm worker Increased by R509.90 but inflation over this period eroded most of these gains. The net result was a real increase of R80 over 6 years. The real monthly wage of a farm worker, therefore, increased by an average of R13.33 per annum during this period.
In addition, they also indicated that the conditions of employment in SD 13 are sub-standard. It condones a 45 hour working week and an additional 15 hours of overtime. It allows for unpaid maternity leave and for children between the ages of 15-18 to be employed. Paid annual leave amounts to about 15 days and sick leave of no more than 12 days per annum (36 days over three years). There is a maximum of 3 days per annum of family responsibility leave entitled to a farm worker when a child is sick or there is death in the family.

LRS further indicated that numerous studies have documented the living and working conditions of farm workers' families. There is no doubt that democracy has not brought freedom to farm workers. While the end of apartheid has opened up new markets for the industry allowing farmers to export and obtain foreign exchange, the majority of farm workers do not enjoy the right to assemble, the right to organise and the right to bargain - fundamental rights in a free society. Their living and working conditions are almost the same as they were under apartheid. Poor education, high unemployment, hunger, lack of housing and healthcare are dominant characteristics of farm workers lives. If anything, work is more precarious due to the ability of farmers to source labour from other areas. That social protection from the state is inadequate and enforcement of rights by the Department of Labour is limited, farm workers remain at the mercy of farm owners and management. While solutions to the stubborn problem of apartheid's legacy remain elusive, the De Doorns farm workers realise that there can be no solution without them. They have begun the struggle to right the wrongs and raise the dignity of farm workers. While R150.00 a day is not enough, it is a good place to start. Below are minimum recommendations that would at least prove to farm workers that their dignity is important and that they have a role to play in the transformation of the farming sector and the economy of the country as whole.

Recommendations for urgent and immediate amendment to the sectoral determination 13:

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  A fixed hourly rate of R20 an hour (this works out to R160 for an 8 hour day)
  
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  A 40 hour working week
  
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  Abolish work for children under the age of 18.
  
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  Fully paid maternity leave
  
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  Paid annual leave of 21 days
  
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  Annual legislated public hearings in all provinces
  

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