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Stafford Thomas writes that the World Economic Forum ranks SA as the second-most difficult country to operate in when it comes to labour relations, which drives an ineluctable move to mechanise in an economy suffering chronic unemployment.
Agriculture presents a particularly bleak picture. “Over the past 20 years half a million jobs have been lost in [the sector],” says Jim Rankin, secretary of the SA Agricultural Machinery Association. The jobs are being done by machines. Mechanisation has been especially aggressive in maize and wheat farming and the pace of mechanisation is not slowing. Deciduous fruit remains the only major agricultural sector still largely dependent on labour. When it comes to job shedding the mining industry ranks a close second to agriculture, with mechanisation in part to blame. Manufacturing has not suffered the same huge job losses, but is far from a cheering picture. The perspective of Pioneer Food Group CEO Phil Roux is telling: “Though mechanisation and automation are expensive, the return on investment is always good.”
- Read this article in full at Financial Mail
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