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Farm Labour Remuneration, Labour Legislation And Commercial Farmers' Perceptions In Kwazulu-Natal

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  • Newman, R.A.
  • Ortmann, Gerald F.
  • Lyne, Michael C.

Abstract

A survey was conducted in 1995 among 135 commercial farmers in KwaZulu-Natal to analyse labour remuneration and farmers' perceptions about the impact of labour legislation recently extended to agriculture. Farm labour remuneration normally includes cash wages and payments in kind (such as rations, housing, land use rights and clothing). The study suggests that, all things being equal, farmers who pay relatively lower cash wages tend to provide more rations per worker and allocate more land use rights. Most respondents agreed that there is some need for labour legislation in agriculture, but the majority perceived the present legislation to be time-consuming and costly, and wanted the legislation to be less ambiguous, more flexible and less extensive. Labour legislation has increased transaction and wage costs in farming and could lead to the substitution of own machinery, contract machinery or contract labour for own labour. Survey respondents indicated that, if minimum wages were imposed, cash wages would be paid and perquisites would be charged for. If the minimum wage was set above present wages, labour would be replaced with machinery and contractors. Respondents would prefer an industrial council to determine minimum wages (if they are imposed), accounting for enterprise and regional differences.

Suggested Citation

  • Newman, R.A. & Ortmann, Gerald F. & Lyne, Michael C., 1997. "Farm Labour Remuneration, Labour Legislation And Commercial Farmers' Perceptions In Kwazulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(1), pages 1-13, March.
    • Handle: RePEc:ags:agreko:54980
    DOI: 10.22004/ag.econ.54980
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    References listed on IDEAS

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    1. Joseph D. Coffey, 1969. "National Labor Relations Legislation: Possible Impact on American Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(5), pages 1065-1074.
    2. Theodore P. Lianos, 1972. "Impact of Minimum Wages Upon the Level and Composition of Agricultural Employment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(3), pages 477-484.
    3. E.J. Goedecke & G.F. Ortmann, 1993. "Transaction Costs and Labour Contracting in the South African Forestry Industry," South African Journal of Economics, Economic Society of South Africa, vol. 61(1), pages 44-54, March.
    4. Bruce Gardner, 1972. "Minimum Wages and the Farm Labor Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(3), pages 473-476.
    5. Woodburn, M. R. & Ortmann, G. F., 1994. "Research Note: Problems And Opportunities In Agriculture - Perceptions Of Commercial Farmers In Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(1), March.
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    Cited by:

    1. Beatrice Conradie & Jenifer Piesse & Colin Thirtle & Nick Vink, 2018. "Labour Demand in the Post‐apartheid South African Wine Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 815-832, September.
    2. Murray, Justin & van Walbeek, Corne, 2007. "Impact of the Sectoral Determination for Farm Workers on the South African Sugar Industry: Case Study of the KwaZulu-Natal North and South Coasts," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), pages 1-19, March.
    3. Conradie, Beatrice, 2005. "Wages and wage elasticities for wine and table grapes in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(1), pages 1-19, March.

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