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GroundUp reports that new research by the Southern Africa Labour and Development Research Unit (Saldru) at UCT suggests that the 2013 increase in the minimum wage for farm workers caused a drop in employment.
In March 2013, the statutory daily minimum wage for agricultural workers was increased by 52% increase (from R69 to R105 a day). This followed widespread labour unrest, particularly in the Western Cape. Previous research across various sectors had found that minimum wage increases had either insignificant or negative effects on employment rates. Yet, the Saldru researchers concluded that the data showed that the 2013 minimum wage increase did cause substantial job loss among rural farm workers. However, they cautioned their results, saying that possible measurement errors and small sample sizes might have complicated the findings. The researchers were unable to determine exactly how many jobs the wage increase cost. The study also found that the average wage for rural farm workers increased, meaning that the legislation was being adhered to.
- Read this report by Rejul Bejoy in full at GroundUp
Get other news reports at the SA Labour News home page