BL Premium reports that in the wake of the latest increase in the national minimum wage, agricultural industry body Agri SA has warned that farmers are likely to accelerate the adoption of technology and mechanisation in a bid to cut labour costs.
This could prove disastrous for the government’s drive to cut the soaring unemployment rate, and tackle poverty and inequality. The agricultural sector contributes about 3% to GDP and is responsible for nearly 900,000 jobs. “The looming alternative of the adoption of technology for farmers to reduce costs and remain afloat is becoming more attractive,” Agri SA executive director Christo van der Rheede said in response to the nearly 7% hike in the minimum wage to R23.19 an hour. He said with mechanisation leading to improvements in processes, productivity, and a reduction in labour intensity, this might prove devastating in a country with an unprecedented expanded unemployment rate of nearly 47%. “More concerning is the risk this presents to the employment of low-skilled workers,” Van der Rheede noted. The Department of Employment & Labour published the increase of the national minimum wage this week, which will be effective from 1 March.
- Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page