The deciduous fruit industry is one of the largest export sectors within the agricultural sector. It employs on average 63,145 permanent equivalent farm workers per annum with an estimated 252,579 dependants.
The National Minimum Wage Commission recommended to the Minister of Employment and Labour an increase in the national minimum wage of farm workers from R18,68 to R21,68 per hour with effect from 1 March 2021. The deadline to comment on the recommendation was 20 December 2020. This reflects a 16,1% increase based on a cost of living adjustment and to equalise the agricultural minimum wage with the national minimum wage.
Hortgro obtained inputs from the independent advisory group BFAP (Bureau for Food and Agricultural Policy) to utilise the agricultural economic models for our respective crop types at industry, regional, and farm level to quantify the impact of the proposed increases on the affordability and sustainability of this proposal.
The results from this assessment are summarised in a 10-point list that can be viewed here.
Hortgro recognises the importance of job creation and retention and has over the years invested substantially in economic development and capacity building initiatives to promote employment opportunities.
We have managed to maintain employment levels whilst many other industries went through job shedding since the start of the Covid pandemic. This situation will change should the proposed wage increase be effected in March 2021. We currently await feedback from
the Commission.
For more information: hortgro.co.za
