Statement on review of sectoral determination for agricultural sector

Representatives of Labour and Agricultural Employers met today in Cape Town under the auspices of the CCMA and the Department of Labour, discussing options and processes which could resolve the labour unrest in the Western Cape as a short term objective and seeking consensus on wage and social benefits of farm workers as a long term objective. The intention was to seek a solution that would be acceptable to both farmers and farmworkers and not undermine long term sustainability of the agricultural sector and food security.

For this purpose the results of an agreed upon independent economic modeling exercise under the auspices of the Buro of Food and Agricultural Policy (academics from the University of Pretoria and Stellenbosch) are awaited, which will provide insight into the implications on the profitability and sustainability of agricultural subsectors under different wage level scenarios. This information will be available within the next two weeks.

Farmers accept that the minimum wage will increase. In addition farmers proposed that the parties jointly assess the nature and extent of 'in kind' benefits and how these should be accounted for in the wage structure. Whilst the affordability of higher wages may be a constraint, the broader policy environment which impacts on the sector's profitability requires scrutiny and adjustments.

Farmers are willing to further engage with Labour representatives on these matters. Farmer representatives appealed to Labour representatives to continuously and effectively communicate with their constituency regarding the legal review process and to call on their constituency to act with restraint, abide by the law and refrain from violent- and criminal behaviour. Farmer organisations undertake to do likewise.

Farmers' approach is aligned with the provisions of the Basic Conditions of Employment Act as recently alluded to by the Minister of Labour, Ms Mildred Oliphant. COSATU and the unions demand a solution which is outside of the current legal framework.

This process should not be about scoring points but finding a sustainable solution. It is therefore imperative that all parties commit themselves to the process as announced by the Minister of Labour.

Statement issued by Agri SA, November 30 2012

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