SOUTH AFRICA: Smaller farm operations would not be able to afford the new minimum wage increase, the National Employers’ Association of SA said today.
Smaller operations, which are more labour intensive, will find it more difficult to deal with the increases, it said in a statement.
The association said it is in these areas where the danger of more retrenchment lies.
Labour Minister Mildred Oliphant yesterday announced a new minimum wage of R105 a day for farm workers — up from the current R69 a day — to take effect from March 1 this year.
Any form of a prescribed minimum wage was a deterrent to employment, especially with regard to small farming units and new entrants into the market, said Neasa chief executive Gerhard Papenfus.