COSATU welcomes fine on poverty paying farmer

The Congress of South African Trade Unions welcomes the imposition of a R28 million fine on a Limpopo farmer for underpaying workers in contravention of labour laws.

The farmer, who employs more than 2 000 workers on more than 20 farms in Limpopo, was paying workers less than the prescribed R1 375 a month minimum wage, despite having received several warnings from the Department of Labour (see report).

Inspectors found that the Montina farm, outside Tzaneen, failed to pay employees leave and made unauthorised deductions from them between 2010 and 2011. The accommodation provided also did not meet legal requirements.

A farm worker told The Star that workers had been underpaid for many years. "We are being paid R700 monthly, and you cannot do anything with such a salary. We strongly believe that the fine from the regional department of labour will yield results and see management increasing our salaries". 

The fine did not include the contributions owing towards the Unemployment Insurance Fund and the Compensation fund, which stand at more than R1 million, and the department still intends to look at aspects of occupational health and safety on which they will make further recommendations.

COSATU congratulates the department for its firm action which should send a strong message to all the farms that we know still fail to comply with the legislation. If they break the law they will be taken to the labour court and fined.

The case also highlights the fact that even the legal minimum wage of R1 375 a month is pitifully low, and needs to be reviewed urgently.

Statement issued by Patrick Craven, COSATU national spokesperson, November 11 2012

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