South African farmers say employment law changes 'limit jobs'

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South African farmers say employment law changes 'limit jobs'

South African commercial farming union Agri SA, has hit out at government amendments to employment rules which it claims will hold back the country's development and job creation.

Agri SA president Johannes Möller said if the draft bills were passed they would undermine job creation goals in the National Development Plan (Vision 2030).

"This Plan has huge expectations regarding the job-creation potential of agriculture, but with the assumption that a favourable policy environment exists. The draft bills unfortunately make no contribution towards creating confidence among farmers with a view to increasing employment opportunities," he said.

The union is also annoyed the Cabinet has approved changes before negotiations with the National Economic Development Council and Business Unity South Africa were finished.

"While Agri SA, as part of the business community, participated in the process in good faith in order to seek workable solutions to highly complex issues, it appears from the published draft legislation that these inputs had simply been swept off the table due to political considerations," he said.

Particular issues of concern are the Employment Minister Mildred Oliphant, will be able to determine pay increases not only of minimum wages, but also of remuneration levels, even if these are higher than minimum wages.

Strict limitations on more flexible employment arrangements with Oliphant able to stop, or regulate, the use of sub-contracting, labour brokering and outsourcing.

The minister will be able to decide on methods for determining the value of a labour tenant’s right to occupy or use part of a farm for the purposes of the Labour Tenants Act.

The government will also have the power to recognize a union as well as being able to deduct membership fees from wages, which Agri SA claims gives easier access to farms.

Agri SA has called on the government to conduct an impact analysis of the proposed legislation to identify unintended consequences before approval.

Related stories: SA raises concerns over minimum wage calculation

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