Forestry industry walk the plank

THE Department of Labour last week confirmed its decision to increase minimum wages on 1 March in the agricultural and forestry sectors, adding costs to the industries’ mixed bag of financial problems.

While Labour Minister Mildred Oliphant took the severe drought and its harrowing effects on SA’s farms into consideration, wages will go up from R2 606.78 to R2 778.83 per month and from R601.61 to R641.32 per week.

The calculation was made using the consumer price index (CPI), excluding the owner’s equivalent rent, which is less than the figure the department used in the past.

But this may still not be enough to save all local timber farm workers’ jobs.

‘Any increases in the costs of producing timber in the current economic climate will add pressure to timber growers. This is not just owing to the impact of the drought, but also because they have to deal with major additional cost pressures for imported inputs such as fuel and equipment because of the massive currency depreciation,’ said Forestry SA Executive Director Michael Peter.

‘Having said this, the increase demonstrates that the Minister must have applied her mind to these factors and others too, such as the poor economic growth forecasts, the potential for further job losses and the global slump in commodity prices.’

However, Peter said the increase is still above the expected inflation figures.

‘The increase is a 6.6% increase on current wages, which is likely to be at least 1% above where we expect inflation will be when the new wages come into effect in March.

‘This will offset some of the potential difference between CPI and food price inflation.

‘We hope that jobs can be protected by timber growers who cannot absorb these increases, by applying to the Minister for a variation to the minimum wage.’

Applying for variations

The Department of Labour encouraged struggling farmers affected by the drought to apply for ministerial variations in terms of Section 50 of the Basic Conditions of Employment Act.

‘Section 50 makes provision for the Minister to replace or exclude any basic condition of employment provided for in the Act,’ said Minister Oliphant.

‘My Department will expeditiously assist in processing variation applications.

‘I further encourage farmers to solicit guidance on how to apply for variations from their relevant associations.

‘The department is aware of the challenges faced by farmers affected by drought and battling to retain labour, but wage adjustments are morally right to ensure that workers’ earnings keep pace with the rising cost of living.’