THE NATIONAL MINIMUM WAGE DISCUSSION DOCUMENT 21 OCT

THE NATIONAL MINIMUM WAGE DISCUSSION DOCUMENT 21 OCT 2015 1

THE NATIONAL MINIMUM WAGE: FURTHER COMMENTS A DISCUSSION DOCUMENT FOR THE PORTFOLIO COMMITTEE ON LABOUR 21 OCT 2015 2

NATIONAL MINIMUM WAGE: FURTHER COMMENTS A DISCUSSION DOCUMENT PRESENTATION OUTLINE • The Agricultural Economy • Employment Statistics in the Agriculture Sector • Living and Working Conditions on South African Farms • Conclusion 3

NATIONAL MINIMUM WAGE: FURTHER COMMENTS A DISCUSSION DOCUMENT THE AGRICULTURAL ECONOMY • • GDP Contribution to Employment Total Income Census Data Employment Relations/ Strike in the Western cape Impact of Minimum Wage on the Sector Research studies – employment in the Western Cape 4

NATIONAL MINIMUM WAGE: FURTHER COMMENTS A DISCUSSION DOCUMENT EMPLOYMENT STATISTICS IN THE AGRICULTURAL SECTOR • • Challenge of overall unemployment in the country Research by Bhorat, Kanbur and Stanwick Reasons for employment losses in the agricultural sector Long term assessment of employment in the agriculture sector – studies by the LRS Recent growth in the agricultural sector Stabilization of employment in the agriculture sector: Reasons Broader economic factors that impact on the sector . 5

NATIONAL MINIMUM WAGE: FURTHER COMMENTS A DISCUSSION DOCUMENT LIVING AND WORKING CONDITIONS ON SOUTH AFRICAN FARMS • • ILO Study (2015) Farm Workers Living Conditions in South Africa: Key Trends, emergent issues and underlying structural Problems Work Status, Employment contracts, work hours, paid vacation leave, paid sick leave, maternity/ paternity leave, contribution to pension/ retirement fund, medical aid/ health insurance contribution, UIF Deductions & Mode of salary negotiations . 6

NATIONAL MINIMUM WAGE: FURTHER COMMENTS A DISCUSSION DOCUMENT Conclusion • • Challenges Wage policy . 7

NATIONAL MINIMUM WAGE: FURTHER COMMENTS A DISCUSSION DOCUMENT THANK YOU. 8