FARM LABOUR REMUNERATION, LABOUR LEGISLATION AND COMMERCIAL FARMERS' PERCEPTIONS IN KWAZULU-NATAL

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.