January : New Minimum Wages for Forestry Workers and Agricultural Workers

FSA has now received notification of the new minimum wages that will be applicable to both forestry and agricultural workers for the next three year cycle which commence on 1^st April and 1^st March 2012 respectively. I have attached the relevant Government Gazettes for your information. Details of these new minimum wages appear below. 

FSA has engaged with the Department of Labour over the past year regarding the setting of the new minimum wages for the new three year forestry cycle which begins, as does the agricultural minimum wage cycle, in 2012.  Our Industry standpoint was that the minimum wage rate applicable from 1^st April 2012 should be the previous wage rate (i.e. R1 278.03)  plus CPI +1% and that the subsequent two annual increases in the cycle should also be adjusted upwards by CPI +1%.  This recommendation was based on the depressed current and likely future economic climate.

Our recommendation has, unfortunately, been ignored in favour of one which is based on aligning the forestry minimum wage with the agricultural one over a three year period. In year one of the new cycle (commencing 1^st April 2012), the forestry wage will be 95% of that of the agricultural minimum of R1 503.90 per month, in year two, 98% and in year three, 100%.

Details of the respective minimum wages are detailed below. 

1.     FORESTRY WORKERS : W.E.F. 1^ST APRIL 2012

With effect from 1^st April 2012 the minimum wage applicable to forestry workers will increase by 11.8%. Details are shown below.

Please note that an employer must pay a forestry worker who is 15 years of age or older, and who works for 35 hours per week or less at least the new hourly rate of R7.32.

Please also note the following regarding annual increases for the other two years in the cycle (as mentioned above): 

• The minimum wage applicable for the period between 1^st April 2013 and 31^st March 2014 will be 98% of what the minimum wage applicable to agriculture will be (see below to see how this will be calculated).
• The minimum wage applicable for the period between 1^st April 2014 and 31^st March 2015 will be aligned 100% with whatever the agricultural minimum wage will be at that stage.

Please note that an employer must pay an agricultural worker who is 15 years of age or older, and who works for 35 hours per week or less at least the new hourly rate of R7.71.

Please also note the following regarding annual increases for the other two years in the cycle:

• The minimum wage applicable for the period between 1^st April 2013 and 31^st March 2014 will be the new rate increased by the CPI (for lowest quintile) as published by Stats SA six weeks prior to implementation, + 1.5%.
• The minimum wage applicable for the period between 1^st April 2014 and 31^st March 2015 will be the previous wage rate calculated as above, increased by the CPI (for lowest quintile) as published by Stats SA six weeks prior to implementation, + 1.5%.

Members should be warned that this change in calculating the annual increases (which used to be based on CPI excluding owners' equivalent rent +1%) will have the impact on the quantum of the annual increases as invariably the inflation rate applicable to the poorest in society (i.e. the lowest quintile), is higher than the average CPI figure previously used.

Members should also be aware that they can, in need, apply to the Department of Labour for a temporary exemption from these new rates should they be able to prove to the Department's satisfaction that they cannot afford them.  Members should contact their local DoL office to make the necessary application in such instances. 

Click for document:
Government Gazette - Forestry Worker Sectoral Determination 2012
Governmet Gazette - Farm Workers Sectoral Determination 2012