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I welcome you all to this press briefing. I would dearly have loved this briefing to have been different. I would have loved to have had seated at my side, and acting as chairperson a rather tall and heavy gentlemen with a wide smile and a small cell phone pinned to his ear. This is not to be. Tragically, this weekend we buried Eddie Jiyaya, my media spokesperson.

Eddie had a passion for issues dominating discussions around the labour market both as a journalist and as a communicator. He helped us tremendously in the last few months to ensure that we were able to effectively communicate through the media to the public about the many things we are doing and the strides we are making to meet expectations and demands of employers, workers, the employed and the unemployed. At this point I would like to pay my respects to his family and friends with a moment of silence. ...... Thank you.

Moving to the business at hand. During my budget speech on 18 May 2001, I spoke about how we, as a Department, were on course in terms of delivering to our key constituencies in the labour market - both on the legislative and institutional fronts.

Developments in recent months have reflected the dynamism of the labour market and how our social partners are adapting positively to the new legislative environment. This has been no more evident than during the current round of wage negotiations.

Robust negotiations have taken place with some disputes ending in strike action but the majority ending in settlement including in the large mining and metal sectors and the majority of the clothing sector.

Many settlements that have been reached, including in the car sector are for three year agreements. Not only does this mean that we are likely to see more industrial relations stability in the next period but also that more space exist for unions and employers to talk about other issues such as skills development and workplace equity. Something that I have been campaigning for.

The days of intense violence where anarchy reigned in workplaces around the country have been replaced by an industrial relations environment, which has become more predictable and stable.

I hope that the recently concluded agreement at Nedlac between government and organised business and labour will also contribute to stability in the labour relations environment. These, coupled with other government initiatives, are intended to encourage much needed foreign and local investment.

Mechanisms to improve efficiencies in the labour market and improve the protection of vulnerable workers are also reflected in the current amendments on the Unemployment Insurance Bill, which I have already tabled before parliament.

The development of human capital too, is a critical factor in encouraging investment into the country. Time and time again we are reminded by the fact that underpinning economic development and sustainable growth is the development of human capital.

A lack of skills is a critical factor in determining a country's competitiveness and ability to operate successfully in the global economy. We are moving ahead swiftly to create a high skilled economy through the various provisions of the Skills Development Act. Recently, we saw the launch of the learnership programme which is intended to encourage greater access to training for the employed and unemployed, especially the youth.

A critical component of a successful human resource development strategy is employment equity. Ahead of the World Conference Against Racism we launched our first report on employment equity. This report provided the first indications of how companies are beginning to adapt to the Employment Equity Act.

As United Nations secretary-general Kofi Anan said at the start of the last week's conference: "South Africa is on track in dealing with discrimination". We are moving ahead to ensure the eradication of discrimination in the workplace. There is no place for those who continue to pursue discriminatory practices in the workplace.

So too is there no place for the continued exploitation of vulnerable workers or allowing unsafe workplaces to continue operating. We are beginning to get a grip on the problems around health and safety in the workplace while also putting in place an appropriate regulatory framework for vulnerable workers such as farm and domestic workers. As the State, we have a responsibility to protect vulnerable workers, who by virtue of their vulnerable state are on the margins of the labour market.

In July we unveiled a report on domestic work in the country and today we are releasing results of our intensive investigation into setting minimum wages and conditions of employment for farm workers.

The remainder of this briefing will focus on our farm worker report. More detailed notes on developments taking place around other policy issues is covered in the documentation that you have.

Release of report on investigation into minimum wages and conditions of employment for farm workers

I believe that the release of this report for public comment represents yet another step forward in giving effect to our promise for a better life for farm workers.

This report is an eye opener on what is going on in the agricultural community. It tells a story of poverty of farm workers and of relative prosperity for farmers. It takes us back into our apartheid history but it also takes us forward to confront the new challenges of global competitiveness.

The report is the result of a very thorough process. It included discussions with farmers and farm workers in public hearings across the country, an in depth look at the agricultural economy, case studies of approximately 70 farms and ground breaking research on the determination of poverty.

The investigation revealed that apartheid left an indelible mark on the livelihoods of farm workers and their families. The 930 000 farm workers in South Africa remain to a very large extent voiceless and labour under feudal relations. Nowhere is the inequality in power relations between employer and employee so starkly etched as in the farming sector.

Farm workers and their families live in conditions of absolute and relative poverty. Children living on farms are more likely to be stunted and underweight than any other children including in the former homeland areas. Farm workers have the lowest rate of literacy in the country and 35% do not live in formal dwellings. The average cash wage in agriculture is R544 per month but this figure masks the high differentials between the best and worst wages.

On the other hand, the report tells us that the farming sector has generally benefited from the major changes, including deregulation, which it has experienced over the last two decades. The farming sector has been doing better since 1990 than in the periods before this.

In this context we sought to consider the role of minimum wages in improving the plight of farm workers. And our conclusion was that at this point in time setting a realistic and modest minimum wage can contribute to poverty alleviation, protect current employment and enable the agricultural sector to continue to grow. A realistic minimum wage can improve the condition of the most vulnerable workers including women workers.

The report however argues that the success of the minimum wage depends on the articulation of minimum wage setting with other government strategies aimed at improving the conditions of rural workers and their communities. These include the Integrated Rural Development Strategy, land reform, increased provision of energy and water to rural areas and improved access to education and health facilities.

In addition, we do not see minimum wage setting in isolation from other labour market initiatives to address the skills need of workers in this sector, improve access to social security, improved conditions for health and safety and improvement enforcement.

In this regard I am looking forward to increased collaboration and working together with both farmer and farm worker organisations. In June this year, the Department of Labour, organised agriculture represented by AgriSA and the National African Farmers Union (NAFU) and organised labour represented by the South African Plantation Workers Union (SAAPAWU) and the Farm and Allied Workers Union (FAWU) signed a joint vision statement for agricultural relations and committed ourselves to work together to achieve this vision.

We committed ourselves to ensure that there is a skilled workforce working in a safe and secure environment under good working and living conditions to ensure a competitive agricultural sector.

The minimum wages proposed by the report range from R400 to R750 per month depending on the capacity of farms to pay. Detailed research was conducted to identify which farming areas are more or less or more profitable and on this basis magisterial districts were divided up into four categories each with their own wage level.

Payment in kind has and continues to form an integral part of remuneration of most farm workers. Doing away with this practice may on the face of it look progressive but in reality may lead to increased poverty. It is proposed that such payment be limited and should never exceed 20% of the cash wage. This deduction will only be allowed in the event that farmers provide accommodation of a certain standard and food.

A number of proposals were also made to amend the existing basic conditions of employment to more appropriately respond to the circumstances of farm workers. These include in respect of sick leave, working time, night work, termination of employment and provisions for small and new employers.

Setting minimum wages and conditions of employment is no doubt a sensitive and potentially controversial issue. It is for this reason that we have decided to release the results of this investigation to the public for their comment until 13 December 2001.

The Employment Conditions Commission, a body that includes representatives of organised business and labour as well as individuals with expertise in respect of vulnerable workers, will consider the comments.

They will then make their final recommendations in the form of a draft sectoral determination, which will include provisions on minimum wages and conditions of employment, to myself.

We hope that the report will spur an informed, constructive and vigorous debate on how to improve the working and living conditions of about a million workers and their families.

I will shortly be requesting an official from my Department to take you through the report but before I do that I would like to conclude by stressing a few points that we learnt from the release of the report on domestic workers. Firstly the proposals in this report are exactly that: PROPOSALS for public debate and comment. They are not yet legally enforceable. There will be an extensive communication campaign preceding the release of the final legally binding sectoral determination.

Secondly, the wages that are set by government in sectoral determinations are ONLY minimums. Employers are free and encouraged to pay wages above these minimums. Workers are free to use this as a basis: as a tool and weapon to fight their cause.

Thirdly, and this is a call to my compatriots in the farming sector. Let us move away from our painful past and give all South Africans an opportunity to reap the fruits of our new democracy. Giving farm workers a better life, will lead to a better and more secure future for us all.

Issued by Ministry of Labour

13 September 2001