Gauteng Smallholder August 2015 | Page 3

GAUTENG COMMENT, by Pete Bower MAGAZINE HOW TO MAKE YOUR PLOT PROFITABLE Vol 16 No 8 August 2015 PUBLISHED BY Bowford Publications (Pty) Ltd Established 1985 (Reg No 2004/019727/07) PO Box 14648, Bredell 1623 Tel: 011 979-5088 or 076 176-7392 Fax: 086 602-3882 e-mail: [email protected] website: www.sasmallholder.co.za facebook.com/gautengsmallholder PUBLISHER & EDITOR Pete Bower RESEARCH EDITOR Vanessa Bower GRAPHIC DESIGN Michelle Urquhart ADVERTISEMENT SALES Call 011 979-5088 ADVERTISING RATES (All Rates Full Colour, incl VAT) Full Page - R6800 Half Page - R4200 Quarter P - R2340 1/8 page - R1240 Smaller sizes: R95 per col cm (Minimum size - 4 col cm) (Black only: colour rate less 40%) Booking discounts (Payment lumpsum in advance) 3 insertions - less 10% 6 insertions - less 15% (other payment and discount options are available) Circulation Area More than 19 000 copies distributed free through outlets in the Agricultural Smallholding settlements of Gauteng and adjoining provinces. Also available by mail and online. By Mail To receive the Smallholder by mail send us a supply of stamped, selfaddressed A4 envelopes. Or, subscribe for only R210 per year. See coupon in this edition. Online http://www.sasmallholder.co.za Copyright Title and contents protected by copyright. No part of this publication may be reproduced or stored in any form whatsoever without the prior written permission of the publisher. Disclaimer While every care is taken to ensure the accuracy of the information in this journal, neither the Editor nor the Publisher can be held responsible for damages or consequences of any errors or omissions. The Publisher does not stand warranty for the performance of any article or service mentioned in this journal, whether in an advertisement or elsewhere. FRONT COVER . Bulbs ready for planting and, inset, the lovely result when they flower. See page 12 for our review of Hadeco’s encyclopaedic work of South African bulbs. Exercise in futility M uch comment and debate in the media has taken place recently around the government's proposal to establish an overall minimum wage in South Africa. And, as one would expect in such a divided society, the debate has very quickly become polarised, with a capitalist faction arguing that imposition of a minimum wage will kill jobs and create more unemployment, and a socialist faction arguing that studies all over the world (presumably by similarly socialist researchers) have shown that a minimum wage policy does not result in job losses and to the contrary actually acts as a stimulus. So at this juncture it may be instructive to observe that in his recent budget, the British finance minister (quaintly called the Chancellor of the Exchequer) proposed a national minimum wage for Britons of £9 an hour. An HOUR. For no other reason than it seems interesting, you might like to note that that is roughly the equivalent of R180 per hour. South Africa's current system of wage determination is sectoral, with only those industries in which workers are deemed most vulnerable “protected” by a minimum wage. So, for example, the minimum wage for a domestic worker in Gauteng is currently set at R476.68 per week (R95 per day or R10.95 per hour), and for a farm worker R601.61 (R120.32 per day or R13.37 per hour). That's a long way off Britain's R180 per hour and, in fact, a long way off most other countries that have enacted minimum wage legislation. And the whole idea, in the current South Africa, is an exercise in futility and nothing more than a sop to the socialists in government. For, whether one is a socialist or not, the fact of the matter is that a set minimum wage will only have any real benefit when it ensures that the lowest paid workers are lifted out of a slave-wage situation ~ out of, in fact, the poverty-trap. And the only time that will happen is when the economy is approaching, or has reached, full employment or, put the other way, no unemployment. Because in the South African situation, where unemployment currently runs northwards of 36% (and much more in certain regional pockets) depending on how you define it, there will always be a potential worker so desperate for ANYTHING that he (or she) will be willing to work for very much less than even a slave-wage-like minimum wage such as we have in our sectoral determinations. But there's another reason why we believe a minimum wage in South Africa is a daft idea, and that revolves around the old adage of “paying peanuts and getting monkeys.” For we believe that employers who bumble along paying these ridiculously low minimums must be suffering from selective tunnel vision which prevents them from intellectually processing the effects of R120 per day on a breadwinner and his or her family. How, I ask, can you expect anybody to live on so little money, taking into account transport, rent, light (in whatever form that may be), water, food, school fees etc? Project yourself into the position of the R120-per-day recipient and try to allocate that money in such a way that covers the daily necessities of life. (It can't be done, which is one of the reasons why 18 million South Africans are forced to rely on social grants of one form or another within their households to make ends meet. Social grants which, incidentally, are unsutainably being funded by the taxpayer.) And then having established for yourself that you are forcing your workers to live in perpetual poverty, how can you expect those workers firstly to be productiv