Econ essay
ECO1010F Essay1 2013
Student Number: CHXTAW001
Name: Robert Chao
Introduction
In South Africa, there are many socio economic issues. The four main issues that the country is dealing with are unemployment, poverty, crime and HIV/AIDS. “South Africa's unemployment rate rose to 25.2% in the first quarter of 2012 compared to 23.9% in the fourth quarter of 2011, says Statistics South Africa (Stats SA, 2013)” As a result, the poor have limited access to economic opportunities and basic services.
The most recent farm workers strikes have recently brought this ever-underlying conflict in agricultural sector back to light. The conflict is between the underpaid farm workers and the farmers. The farm workers want a raise in the minimum wages, while the farmers contest the increase as any raise in the wages is unaffordable. [F. Meyer 2012]
The aim of any employer is to maximise profit. [D.Hamermesh 1996] Farmers want to maximise profit through paying the bare minimum for the unskilled labour. However, from a farm workers perspective, they want to be paid the highest possible wage.
The suggested solution set by the government is to increase minimum wage for unskilled labours. However, in the case of a minimum wage one might argue that regulating a minimum wage is needed to prevent exploitation. [P. Dibben 2011] In the most recent strikes, farm workers demanded an increase of wages from R69 to R105 per day. The issue of increase in minimum wage is yet to be solved.
The Minimum Wage
“A Minimum Wage is the lowest hourly, daily or monthly wage that employers may legally pay employees or workers.”[Mywage.co.za, 2013]
Minimum Wages for Farm Workers
All employers in South Africa who employ Farm Workers are legally bound to pay at least the Minimum Wage.
Minimum Wages for Farm Workers in South Africa
1 March 2013 to 28 February 2014
1 March 2014 to 29 February 2015
Hourly (R)
11.66
Previous years’ wage + CPI*+1.5%
Weekly (R)
525.00
Monthly (R)
2274.82
Student Number: CHXTAW001
Name: Robert Chao
Introduction
In South Africa, there are many socio economic issues. The four main issues that the country is dealing with are unemployment, poverty, crime and HIV/AIDS. “South Africa's unemployment rate rose to 25.2% in the first quarter of 2012 compared to 23.9% in the fourth quarter of 2011, says Statistics South Africa (Stats SA, 2013)” As a result, the poor have limited access to economic opportunities and basic services.
The most recent farm workers strikes have recently brought this ever-underlying conflict in agricultural sector back to light. The conflict is between the underpaid farm workers and the farmers. The farm workers want a raise in the minimum wages, while the farmers contest the increase as any raise in the wages is unaffordable. [F. Meyer 2012]
The aim of any employer is to maximise profit. [D.Hamermesh 1996] Farmers want to maximise profit through paying the bare minimum for the unskilled labour. However, from a farm workers perspective, they want to be paid the highest possible wage.
The suggested solution set by the government is to increase minimum wage for unskilled labours. However, in the case of a minimum wage one might argue that regulating a minimum wage is needed to prevent exploitation. [P. Dibben 2011] In the most recent strikes, farm workers demanded an increase of wages from R69 to R105 per day. The issue of increase in minimum wage is yet to be solved.
The Minimum Wage
“A Minimum Wage is the lowest hourly, daily or monthly wage that employers may legally pay employees or workers.”[Mywage.co.za, 2013]
Minimum Wages for Farm Workers
All employers in South Africa who employ Farm Workers are legally bound to pay at least the Minimum Wage.
Minimum Wages for Farm Workers in South Africa
1 March 2013 to 28 February 2014
1 March 2014 to 29 February 2015
Hourly (R)
11.66
Previous years’ wage + CPI*+1.5%
Weekly (R)
525.00
Monthly (R)
2274.82