Hon Speaker, before the Department of Labour can establish a sectoral determination for any sector, the Employment Conditions Commission, ECC, conducts public hearings, as the standard practice, to listen to employers and workers in regard to their conditions and the impact that the minimum wage will have on the sector.
The agricultural sector was no exception to this approach. The ECC invited both employers and workers to make representations. During the public hearings the employers raised what they considered to be the impact that the minimum wage would have on them. Similarly, the workers raised issues relating to their current exposure to low wages and the rampant exploitation that they are subjected to in the sector.
As the Minister of Labour I have the responsibility to listen to both parties and strike a balance between the diverse interests of those parties, also taking into account the socioeconomic interests of the country, including possible job losses. The investigation did not show any negative impact on jobs, and I took comfort from the fact that those employers who genuinely cannot afford the new rates will have recourse in the form of exemptions.
The actual average wage prior to the introduction of the new determination varied from one employer to the other and from one province to the other. The information collected through the public hearings showed that the levels of wages they were paid in the sector were without doubt far from being ethically acceptable.
The hon member should know that the minimum wage is not determined in a vacuum. There are considerations which are taken into account prior to the introduction of a minimum wage, like the ability of the employer to continue to do business and the vulnerability of workers, which may include, amongst other things, their living standards.
For employers that cannot comply with certain provisions of our labour laws, the Basic Conditions of Employment Act of 1997 provides for the variation of certain conditions of employment, including wages where employers cannot afford the payment of such wages. Thank you. [Applause.]