The focus of the study is the wages and working conditions of farm labourers in commercial agriculture. After an outline examination of the broad trends in employment and wages in the agricultural industry as a whole, the emphasis falls on a micro-study of employment practices in the Eastern Cape magisterial district of Albany. The results of a survey of farmers was used to determine the level of wages, including payments in kind, the value of housing, cropping and grazing rights. It was found that cash wages made up only 25% of the total remuneration of R684 per annum, while purchased and farm produced rations made up a further 40% of the total. A survey conducted in the Albany district two decades previously was used to compare the real earnings in 1957 and 1977. Although real cash wages and rations increased over the twenty year period the restriction of cropping and grazing rights had the effect of keeping real earnings static. In the light of the improvement of other working conditions, such as the reduction in working hours, however, it is concluded that some increase in real wages did occur . It is evident that there are no clear-cut recipes for successful farm labour management and no unequivocal statements should be made about the most visible element, namely cash wages.

Labour legislation was introduced into agriculture in the early 1990s with the Basic Conditions of Employment Act (BCEA) being gazetted in 1992. Since the mid-1990s "new" labour legislation pertaining to agriculture has been implemented in South Africa, and includes the Basic Conditions of Employment Act 75 of 1997 (amended), the Unemployment Insurance Act 63 of 2001 (amended), the Labour Relations Act (LRA) 66 of 1995, the Land Reform (Labour Tenants) Act 3 of 1996, the Extension of Security of Tenure Act 62 of 1997, the Employment Equity Act 55 of 1998, the Skills Development Levies Act 9 of 1999, and the Sectoral Determination (an amendment of the BCEA 75 of 1997) which includes the imposition of minimum wages. This study examines the legislation in detail as well as the implications of this legislation for agricultural labour employment in South Africa. A relative increase in the cost (transaction and wage) and risk associated with labour motivates farmers to replace labour with machinery, machinery contractors, labour contractors or new technologies that are labour-saving. This results in a decrease in the demand for unskilled workers and higher levels of poverty and unemployment in South Africa. This study estimates long-run price elasticities of demand for regular labour in South African (SA) agriculture using both Ordinary Least Squares (OLS) regression and a Two-stage Least Squares (2SLS) simultaneous equations model. The 2SLS model includes a labour supply equation. Secondary data obtained over a 43 year period (1960-2002) from Statistics South Africa and the Abstract of Agricultural Statistics were used in this study. Both models were estimated for the period 1960-2002, and included a piecewise slope dummy variable for wages with the threshold year taken as 1991 to reflect expected changes in farm labour legislation. Study results show that the estimated long-run price elasticity of demand for labour for the pre-1991 (i.e., 1960-1990) period was -0,25 for the OLS model and -0,23 for the 2SLS model suggesting that the demand for regular labour was jnelastic during this period. For the post-1991 period (1991-2002), the long-run elasticity was estimated as -1,32 for the OLS model and -1,34 for the 2SLS model. This shows a structural change in demand that questions the appropriateness of minimum wage and other labour legislation that has raised the cost of regular farm labour in South Africa. Labour legislation introduced in the early 1990s encouraged farmers to substitute casual workers for regular workers. However, the inclusion of all casual workers in minimum wage legislation from 2006 is expected to slow the casualisation of agricultural labour as farmers turn to labour contractors, chemicals and machinery as the next best substitutes. The study found that an increase (decrease) in the price of chemicals (pesticides and herbicides for crops, and labour saving dips and sprays for animals) result in an increase (decrease) in the demand for regular labour. The demand for labour is also sensitive to changes in real interest rates (used as a proxy for machinery costs). The cost of capital would decrease (increase) as interest rates fall (rise), resulting in farmers adopting more (less) machinery and equipment, causing a decrease (increase) in the demand for regular labour, ceteris paribus. In order to reverse the regular labour unemployment trend in SA agriculture, government could choose to adopt more flexible labour market regulations (i.e., legislation regarding the hiring and dismissing of farm workers, and increases in wages and benefits for the farm worker could be based on the individual performance of each worker as opposed to increasing the wages of the entire workforce through minimum wages) which would reduce labour costs and encourage farmers to employ more labour. / Thesis (M.Agric.Man.)-University of KwaZulu-Natal, Pietermaritzburg, 2006.

Agriculture is a major employer of labour in South Africa with about 8.8% of the total labour force directly involved in agricultural production (StatsSA, 2007a). Farm wages and working conditions in the Albany district were researched in 1957 by Roberts (1958) and 1977 by Antrobus (1984). Research in 2008, involving face-to-face interviews of a sample survey of 40 Albany farmers, was undertaken to update the situation facing farm labourers and allowed for comparisons with the work previously done. Farm workers were governed by common law until 1994 when the government intervened with legislation. The introduction of the Basic Conditions of Employment Act (1997) for farm workers, amended in 2002 to include minimum wage legislation, and the Extension of Security of Tenure Act (ESTA) of 1997 impacted the supply and demand of farm workers. Other impacts have been due to the Albany district experiencing an increase in the establishment of Private Game Reserves and game-tourism with a simultaneous decline in conventional farming. It was concluded from the survey conducted that minimum wage legislation decreased the demand for regular and increased the demand for casual labour, which incur lower costs including transaction costs, than their regular counterparts. The ESTA of 1997 contributed to a decreased number of farm residents, which had spin-off affects on the supply of labour. Farmers experienced a simultaneous price-cost squeeze, which furthermore decreased the demand for labour. Studying the working and living conditions showed that farm workers had limited access to educational and recreational facilities which negatively impacted the supply of labour.

This thesis examines the agricultural labour process on commercial farms in post-apartheid South Africa with a particular focus on systems of labour control on these farms. Considerable literature exists about the labour process in capitalist society but the capitalist labour process does not exist in any pure form. Rather, different labour processes exist and the specific form they take depends on spatial and temporal conditions. Additionally, labour processes are often economic sector-specific. Because of variation in capitalist labour processes, differences in systems of labour control (or labour control regimes) also arise. Historically, up until the end of apartheid in 1994, the labour control regime on commercial farms in South Africa was marked by a paternalistic despotism of a racialised kind. This in part reflected the fact that commercial farms were simultaneously sites of both economic production and social reproduction and, further, they were very privatised agrarian spaces largely unregulated (specifically with regard to labour) by the state. Since the end of apartheid, commercial farms have been subjected to multiple pressures. Notably, the South African state has strongly intervened in labour relations on commercial farms, and commercial farms have been subjected to ongoing neo-liberal restructuring. This has led to the prospects of changes in the prevailing labour control system on commercial farms. In this context, the thesis pursues the following key objective: to understand changes and continuities in the labour process on commercial farms – and particularly labour control systems – subsequent to the end of apartheid in South Africa. It does so with reference to four farms in Eastern Cape and KwaZulu-Natal Provinces.

Income inequality is prevalent in both developed and developing countries. In all of these countries there are workers who are highly paid while others are given very low wages. The disgruntled low-paid workers in these countries usually force their governments to intervene in the labour market and introduce the redistributive policies like the minimum wage policy. Governments usually accede to these demands of low-paid workers because they do not want to invite political troubles. That led to an increase in the number of countries using minimum wage policy as redistributive mechanism in the late 20th century and the beginning of the 21st century. Minimum wage policy is, however, a very controversial issue. Supporters of minimum wages regard the policy as ideal because it provides social protection to un-unionised and low-paid workers with little or no bargaining power. The opponents of the policy on the other hand argue that wages in the labour market should be determined by the forces of demand and supply. It is argued that wages that are artificially determined lead to the rationing of jobs and displacement of the very same low-paid workers that the policy is intended to protect, as employers are forced to replace unskilled workers with skilled workers and machines. South Africa’s agricultural sector workers were among some of the least paid workers in the country. Employers were able to exploit these workers because they were not protected by any labour legislation that workers in other sectors were afforded. Farm workers were only protected by common law. It was only in the 1990s that labour legislations like Basic Conditions of Employment Act, Labour Relations Act, Employment Equity Act, Extension of Security Act and Tenure Act and Skills Development Act were extended to the agricultural sector in an attempt to protect the working conditions of vulnerable workers. These acts as well failed to improve the working conditions of the agricultural sector workers and that prompted the Minister of Labour to instruct the Director-General of Labour to conduct the necessary investigations to see if it could be necessary to introduce minimum standard of employment in the sector, including minimum wages. That led to the adoption of Sectoral Determination 8 of 2003 which introduced sectoral minimum wage in the sector. The sectoral minimum wage which came into effect in 2003 was increased annually by the rate of inflation plus one per cent. It was only in 2013, after the Western Cape farm workers went on strike for higher wages, that the minimum wage was raised by 52 per cent. As argued by the opponents of minimum wages, job losses occurred among unskilled workers. The implementation of minimum wage policy in the agricultural sector was problematic, as the policy was not properly complied with due to several compliance concerns. Apart from there being insufficient inspectors to monitor and investigate cases of non-compliance, inspectors were under-trained and under-equipped. Fines imposed on offenders were too small, which further encouraged disregard for the policy. / Economics / M. Com. (Economics)

While skilled labour shortages are common in many countries, including South Africa, mainly due to a skills mismatch, the undersupply of unskilled labour was less expected, especially in developing countries with high unemployment. The thesis utilises data on perceived worker undersupply on selected citrus farms in the Sundays River Valley (SRV), located in the Eastern Cape Province of South Africa, collected in 2013, to analyse why unemployed residents, surprisingly, do not fill up vacancies on farms. In contrast to other labour markets, farm employment is not restricted by educational levels and as workers reported, with little training the various job tasks and skills required are easy and quick to grasp. At a time the government is trying to find ways of reducing unemployment, and the SRV Municipality (2012:29) reported approximately 42% unemployment, the question arises as to why the relatively low educated residents do not take advantage of the employment opportunities on farms. According to local workers and unemployed residents, the farm job was unattractive largely because of a combination of two factors: perceived relatively low salaries partly caused by the availability of migrant seasonal workers accepting lower remuneration and poor non-wage working conditions. The survey also found that farmers preferred migrant workers because they were more productive compared to their local counterparts who were, reportedly, characterised by high absenteeism and laziness, caused mainly by a reliance on social grants and alcohol abuse. Other reasons given for the unattractiveness of the farm job included the seasonal nature of farm employment, which left workers with no source of income in the offseason, the redundancy associated with farm tasks, perceived poor treatment of workers and lack of information on UIF and Provident funds to farm workers. To address problems associated with the dislike of farm work, seasonality of on-farm employment and the reportedly relatively low income, farm managers, the local municipality and the Labour Department could possibly be involved in creating more communal agricultural projects and help provide local community members to venture into supporting alternative careers within the Hospitality, Ecotourism and Conservation Industries through training programmes. Farm managers may need to consider improving their working relationship with workers in communication and when assigning tasks. Farmers and the local municipality could also consider investing in training programmes for the unemployed residents to equip them with technical skills that can improve their chances of finding jobs.