Johan van Niekerk, chairman of the Wellington-based SA Table Grape Industry, which initiated the "social compact", says the plan arose out of the recent strikes in the sector, which "highlighted huge problems".
Van Niekerk says the plan is supported by labour and this is confirmed by the Congress of SA Trade Unions' Western Cape secretary Tony Ehrenreich
"The fruit farmers realises that before 1994 the goals of agriculture were aligned with the goals of the National Party government," says Van Niekerk. "But since then, agriculture has been seen as the enemy of the new government. The way we organised ourselves gave government the impression that we were in cahoots with various opposition parties.
"The strike woke us up to the realisation that we have to close this book and write a new one. The fruit farmers, government and labour have the same goals and the fruit industry development plan will be aligned with the National Development Plan."
He says the document being circulated contains terms of reference for a fruit industry social contract and addresses issues affecting workers, such as housing, transport, income and land ownership.
Van Niekerk says the table-grape industry - whose harvesting season was severely disrupted by the strikes - doubled productivity between 1997 and 2003 but has stagnated since then.
"We have made just enough to sustain the industry but not enough to grow it. Rising costs, including labour, will make it a loss-making industry unless we can increase revenue," he says.
Once finalised the plan will be sent to President Jacob Zuma. It will outline the role the industry believes government needs to play.
Van Niekerk says government assistance is required to provide employment incentives, infrastructure development, market access and development, research and development and productivity development plans. "If government supports the industry it will increase the profitability of the fruit growers and the currently unaffordable increased wages will become affordable," he says.
Ehrenreich says an agreement between business and labour is the only way to develop the fruit industry. "The old baasskap attitudes prevalent on farms will lead to ruin. But farsighted employers are welcome and we as labour are looking forward to engaging with them," said Ehrenreich.
The labour department reported that it had received 918 applications for exemption from the new R105/day minimum wage affecting almost 75,000 workers - more than 10% of the total agricultural workforce. Most applications were from farmers in the fruit-growing sectors of the Western Cape (407) and Mpumalanga (206).
Van Niekerk and Ehrenreich are both critical of the applications.
"Though I can understand that some farmers will apply for exemptions, there is no sense in it," says Van Niekerk. "If anyone gets the exemption, it will mean the minimum wage goes down again and then there will be more strikes."
Ehrenreich called for the applications to be "carefully audited".
"The applications represent a political act against workers. Many of these applicants own multiple farms and they move their different costs across business units to create a misleading picture of their profitability. We are aware that they also build holiday homes and apartments for their children in Stellenbosch and charge these to their farms as expenses."
Ehrenreich says if farmers cannot afford the minimum wages "perhaps they should get out of the industry and leave the farms to farmers and workers who can run them profitably".
The labour department says farmers' union AgriSA has informed it that Limpopo and Mpumalanga farmers intend to retrench about 2,000 workers, despite the offer of exemptions to those who cannot afford to pay the prescribed wages. The department says that while workers might be retrenched, farmers have also applied for permits to employ foreign labour. A total of 6,487 applications were received in January and February from farmers in Limpopo, Mpumalanga and the Western Cape.
The department said it would ensure that SA labour was not replaced with foreign labour.
Source: Financial Mail via I-Net Bridge
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