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Abstract
A survey was conducted in 1995 among 135 commercial farmers in KwaZulu-Natal to analyse labour
remuneration and farmers' perceptions about the impact of labour legislation recently extended to agriculture.
Farm labour remuneration normally includes cash wages and payments in kind (such as rations, housing,
land use rights and clothing). The study suggests that, all things being equal, farmers who pay relatively
lower cash wages tend to provide more rations per worker and allocate more land use rights.
Most respondents agreed that there is some need for labour legislation in agriculture, but the majority
perceived the present legislation to be time-consuming and costly, and wanted the legislation to be less
ambiguous, more flexible and less extensive. Labour legislation has increased transaction and wage costs in
farming and could lead to the substitution of own machinery, contract machinery or contract labour for own
labour. Survey respondents indicated that, if minimum wages were imposed, cash wages would be paid and
perquisites would be charged for. If the minimum wage was set above present wages, labour would be replaced
with machinery and contractors. Respondents would prefer an industrial council to determine minimum
wages (if they are imposed), accounting for enterprise and regional differences.