Minimum Wage Laws for Farm Workers Are Cruel

Adv. Z.L Madasa MP – ACDP

Tuesday, 3rd December 2002

On the surface, the minimum wage laws for farm workers introduced by the Department of Labour on 2nd December 2002, seem to prevent abusive labour practices, and this will be true for some farm workers. Well and good. However, the broader macroeconomic effect of minimum wage laws is to artificially truncate the lower end of the demand for labour, and hence it will increase unemployment. It will deny many first-time job market entrants the opportunity to obtain productive employment, for not every South African is able to compete for a job that will pay at a level above the minimum wage level. In other words, it is like removing the bottom rung of the ladder of economic success, a cruel act that will damn many to a life of dependency.

Stacking the odds in favour of organised labour pushes up the costs of employment. There are always some who benefit, but sadly the macro-effect is that retrenchments continue at a pace and the prospect of employment for our poorest grows dimmer.

It is once more a case of good intentions precipitating unintended consequences. Many employers in this vital sector, will resort to mechanised alternatives, e.g. using more chemicals for weed control, more machinery for harvesting etc. There is also no logic in using the same sectors for farm workers as for domestic workers. It is unfair to prejudice some farmers producing the same crops with a 23% higher minimum wage bill. It is our opinion that this Bill has been hurriedly passed through for electioneering purposes without sufficient consultation with the affected A sectors.

The alternative approach, which is in line with ACDP policy, is to deregulate price controls and allow the market to operate efficiently. Instead of penalising those entrepreneurs who are willing to engage others in productive employment, we should rather reward them. Only then will we begin to see employment levels improving and competition for good employees pushing wages up without any government intervention or job losses.


Adv. Z.L. Madasa MP
African Christian Democratic Party Labour Spokesperson



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For further comment please call Advocate Mighty Madasa MP at 083 3024938 or ACDP Media Liaison Wesley Douglas at 072 461 3719 or 021 403 3521