Increase in minimum wage for farm workers may result in job losses

01 Feb 2016 | Admin Author

Organised agriculture has cautioned that steep increases in the minimum wage for farm workers could lead to substantial job losses.

Cosatu has threatened with a nationwide strike in the sector later this year, in support of higher wages.

Agri Eastern Cape president Ernest Pringle says there has been a substantial decrease in the number of jobs in agriculture, since the introduction of a minimum wage in 2002.

"In 2002 the number of people employed within the sector was a million, today it is just over 600 000 and that is just through lower profatibility in the sector as well as the pressure induced by minimum wage legislation" Pringle said.

Pringle says a 20% increase in the minimum wage, will lead to more jobs being shed in the sector.

He adds that farmers are also looking at mechanising their operations which would add to job losses.

"Many farmers I know employ people at above minimum wage but if minimum wages went up by 20% that would pretty soon put pressure on those that are employing at minimum wages to actually put people out of word" Pringle said.