THE Minister of Employment and Labour announced an annual wage increase for 2022 which comes into effect on March 1, and farmers in the Cradock district are concerned about the extra cost involved at a time when input costs for farmers have gone up tremendously.
Hilton Collett, chairperson of the Cradock District Farmers’ Union, is of the opinion that not all farmers will be able to absorb all these extra costs and that there is a possibility of job losses.
“The price of fuel, fertilisers and maize have gone up and it will be difficult for certain farmers to absorb those costs together with the newly announced wage increases,” he said.
He also explained that people must take into consideration that farmers are price takers and that they can never determine the selling price of their goods themselves so these costs are not just passed on to the next level, like in other industries.
He anticipates that the increases will get the farming industry to be more efficient with every facet of there business.
People are a critical part of the agricultural industry and it is a person who enjoys the outdoor working environment and is not deterred by the rural life far from all the hustle and bustle of the towns.
These individuals need to be looked after as they are of importance to the business. If mechanisation is a possibility and economical, it will be investigated, but for our area’s economy it is much better to keep people employed and keep them efficient.
Wages for labourers have gone up by 6,9% which means payment now stands at R23.19 per hour, R208.71 for a nine hour workday, R1 043.55 per week and R4 521.70 per month plus overtime and double pay on Sundays and public holidays.
According to the Government Gazette of February 9, 2022, domestic workers will now be in line with farm workers and earn a wage of R23.19 per hour.
Collet explained that the better employees already get more than the minimum wage, but the challenge is to make sure that their wage is maintained by the increase that the minimum wage category is receiving.
Farmers also have to provide housing to their workers, attend to the upkeep, supply water and electricity and arrange for refuse removal. “These are often additional costs that are overlooked when comparisons are done to those working in a town,” he said.
“The price increase on top of other costs escalations and the decreasing purchasing power of our consumer is presenting challenges, and resulting in further pressure on farmers to investigate all possibilities and options to make sure we stay in the game,” he said.
