The Farmworker Spring
Thursday, 7 February, 2013
Christopher Rawbone-Viljoen
In the wake of recent events I feel its important that at least one more farmers perspective is heard.
In Dec/Jan the Elgin/Grabouw area was rocked by the much publicised farmworker strikes. For all
farmers in the region it has been extremely unsettling. The basic rural wage determination, set
by the Dept. of Labour at R69 p/day, was challenged by Cosatu and other farmworker unions, the
latter representing less than 10% of all farmworkers in South Africa.
The response from AgriSA has been abysmal, thus giving Tony Ehrenreich and the like a platform
to control the media and the general perception pertaining to worker demands. It is also
interesting to note that the Western Cape is the only province to experience large-scale unrest on
farms, a province that on average pays 30% higher farm wages than all other provinces in SA.
The truth is, in the Grabouw area at least, most strikers were not farmworkers at all, but rather
groups of unemployed youths living in the Pineview township, including ANC sponsored
troublemakers bussed in from Cape Town. The mass migration from the now defunct Eastern
Cape has seen our small town grow by 10,000 inhabitants since 1994, placing further strain on
service delivery and job availability.
On 4th Feb 2013 the government announced it will raise the rural minimum wage by 52% to
R105 p/day effective 1st March. The knock-on effects are likely to be dire. Farming is a cyclical
business, some years are good, some years are bad. In many ways one gambles with nature and the outcomes are uncertain, coupled with the challenges of competing in a global marketplace where agriculture is subsidised in many other countries.
One can generally determine the health of an industry by assessing whether the number of
players in the industry has grown. In the case of commercial farmers, since 1994, the numbers
have declined from 120,000 to 37,000. South Africa became a net importer of food for the first
time in 2007. A one-size-fits-all wage increase is clearly not the answer if government wants to
create jobs in an industry that has already shed an estimated 400,000 jobs since 1994.
Using grape growers as an example, over the past 5 years production costs have steadily
increased while grape prices have declined, coupled with unforeseen disasters such as the
flooding experienced along the Orange River in 2011. These are marginal farms teetering on
the verge of collapse. For many farmers, wages can form up to 40-50% of their entire
production cost. In an environment where prices are declining, they will be left with no choice
but to close their doors or shed further jobs.
An increase in the rural min wage will inevitably lead to a proportional increase in the urban
min wage, currently at R90 p/day. Retailers and supermarkets will look for ways to offset these
increases further down the value chain, which will, in turn, lead to more pressure on farmers,
ultimately causing further job losses.
From a farmers perspective the options are clear; less labour, a more efficient workforce with
increased productivity and innovation through mechanization.
I can only speak on behalf of Oak Valley with regard to specific labour practices, but I know that
the vast majority of Elgin farmers employ a similar ethos when it comes to looking after their
workforce.
• In season, Oak Valley employs up to 850 workers, 200 permanent and 650 seasonal. Fruit
farming is a seasonal business (Nov-May) and thus requires seasonal contract labour.
• Seasonal workers are paid more than the minimum wage, typically ranging between
R80-R90 p/day + picking and sorting incentives.
• 200 seasonal workers are housed on the farm during harvest where they are given 3 proper
meals p/day.
• Permanent workers are paid, on average, R130 p/day, with some earning up to R400 p/day
depending on seniority and skillset.
• Permanent workers have added benefits including pension and healthcare, predominantly
funded by Oak Valley.
• In 2011, Oak Valley had its first farmworker millionaire who received a R1.3m payout from
the Provident Pension Fund. There are two more in line to receive R1m+ this year.
• Permanent workers live in rent free on-farm housing of an exceptional standard with
subsidised electricity and free water. There is no other industry in South Africa that provides
housing to the extent that farming does.
• A community centre was built in 1955 for the hosting of religious activities and social
functions, it is used free of charge.
• A day-care facility, built in 1964, is licensed to accommodate 64 pre-school children where
working mothers are entitled to enrol their children free of charge.
• Sports facilities under lights make provision for rugby, cricket, football, tennis and netball,
including a fully equipped clubhouse built in 1986.
• Transport for schoolchildren to and from school every day using a hired bus is provided at no
charge.
My point is not to highlight how well Oak Valley treats its labour, we consider these initiatives a
normal part of running a healthy business and ensuring a motivated workforce. Its a win-win.
Most of these initiatives were introduced pre-1994. My point is as follows; when one considers
the additional costs associated with the abovementioned hidden benefits, the real wage is far
higher than what Ehrenreich and his cadres lead the media and general public to believe.
The past few weeks have shown that farmers in South Africa operate in a hostile environment
and are in business in spite of, not because of government. The majority of white farmers realise
that their futures depend on helping government develop viable solutions, yet they are largely
excluded from the policy making process. The responsibility rests with government to form a long-term mutually positive relationship with farmers in order to develop policies to fit different farming circumstances. It cannot be a one-size-fits-all approach. One feels that the reservoir of goodwill by farmers towards sensible cooperation with government is rapidly running dry. This will be tragic for South African agriculture and for the economy as a whole.