Employment conditions commission

Submission from Transvaal Agricultural Union of South Africa (TAUSA)

As price-takers, farmers are already confronted by increased input costs resulting from fuel price hikes, the predicted tariff increases requested by Eskom and the anticipated e-tolls on the Gauteng highways en route to the major markets where produce is delivered to. As matters stand, labour costs represent the biggest single component of the farmers' expenses. Any upward adjustment without some form of financial compensation in the form of subsidies or guaranteed minimum prices for produce will only reduce profitability which results in job losses and the eventual collapse of the commercial agricultural sector. TAU SA has commissioned an independent economic study in this regard and a professor of the post graduate business school of the University of Pretoria could be approached to submit his study and findings.

1. Collateral privileges.

Unlike current practice in all the other sectors of the economy, employers are legally obliged to provide security of tenure as well as the provision of housing, services and transport. As it is at the moment, many farmers are in fact providing services, support structures and opportunities which in fact fall within the ambit of local government. These aspects are seldom considered as part and parcel of the remuneration received by employees. Irrespective of the eroding influence of a legally obtained property described by a title deed, the net result of being obligated to accommodate persons with whom the land owner has no binding contract, is the creation of tension caused by non-compliance to mutually-agreed upon arrangements pertaining to the number of livestock, grazing and areas to be cultivated.

2. Unrealistic expectations and the fabrication of false perceptions.

It is obvious that deliberate efforts are underway to project farmers as being "very rich" in comparison to the "very poor" people in their employment. An audit of the financial institutions debt records will confirm that the vast majority of farmers are operating with the credit made available to them based on acceptable securities and that current profit margins in fact leaves very little leeway for increases in input costs. Furthermore, the continuing promotion of a baseless accusation that farmers are in general responsible for maltreating workers employed by them and for illegal evictions, is regarded as a deliberate attempt to de-humanise farmers resulting in the continuation of violent crimes committed against them. Reports by the Institute for Security Studies clearly indicates that the murders per 100,000 reflects a ratio of 98,8 for farmers compared to 51 for SAPS members murdered whilst the national murder average for 2011 is 30,9.

3. Mutual trust.

For many decades a unique relationship existed in farming communities. It cannot be ignored that a degree of separation brought about by the occurrence of violent crimes, arson, theft, intimidation and agitation has destabilised the situation. It is imperative that not only the rights and demands of employees be regarded within the current reality, but equally the legal rights and legitimate options exercised by employers should enjoy equal status in the eyes of the law as well as those who apply it.

4. Recommendations by Transvaal Agricultural Union of South Africa

   1. Individual exceptions.

As already mentioned, an across-the-board increase reflecting a single wage level in the agricultural sector does not take into account geographical and commodity-related considerations. Therefore it is recommended that provision be made for individuals unable to comply to submit representations requesting individual exception to the rule.

2. Open labour market.

Not a single worker is forced by anybody to accept employment or remain employed on a farm. South Africa's labour market is open and all seeking employment are free to pursue their highest expectations. However it remains a fact that the vast majority of people seeking employment will have to make a crucial decision somewhere along the line – either accepting an appointment or looking elsewhere for something offering better prospects. In the same vein, employers are free to decide what ratios of full-time and part-time employees should exist within the parameters of their businesses. This reality needs to be accepted by all involved.

3. Economic study.

It is imperative that an encompassing economic study is jointly done by role players in an effort to gauge the financial impact and potential social ramifications of wage increases. It is furthermore suggested that this study should differentiate between the various geographical areas within the RSA which has direct bearing on the nature of agricultural activity made possible by climatic-, soil- and environmental factors as well as the availability of water. The study should therefore also differentiate between the nature of various commodities within the agricultural sector.

4. Service delivery.

TAUSA also raised a concern that there is tendency, especially in farming areas, of delegating service delivery issues (education, electricity, water, roads, etc) which are the responsibility of municipalities and other departments of state, to land owners without any financial support, should cease forthwith.
Agriculture differs from other sectors in the national economy in so far as the product it produces, makes life possible - without food, life cannot be sustained. It is also the biggest single employer of people in the rural area not only providing employment but also accommodation and several related services without any support, either financial or public acknowledgement, from government.

Notwithstanding these realities, a decreasing number of commercial farmers are succeeding in feeding an ever-increasing population whilst providing an income for a large portion of the rural population.

However, rising input costs, narrowing profit margins and the occurrence of violent crime are causing severe pressures on sustainability. The sequential collapse of the agricultural sector will have severe economic repercussions which will no doubt affect the national economy in a most damaging manner.

Farmers throughout the country forwarded submissions as per the organizations under which they affiliated.

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