Abstract:
South Africa is regarded as the most unequal society in the world. This together
with a high unemployment rate places increased pressure on entrepreneurs and
government. Government has opted to introduce a national minimum wage
(NMW) in order to address these problems. However, a minimum wage holds
many challenges, especially for the agriculture sector. The purpose of this study
is to identify the challenges facing the South African agriculture sector in terms
of the NMW. A literature review is conducted, which allows for analysis of the
minimum wage dispensation with specific reference to the South African agriculture
sector. This analysis, and the relevance thereof in terms of employment and
inequality, is depicted by means of a conceptual model. From the literature review
conducted it is clear that the impact of the external environment cannot be
ignored in the agriculture sector. It also becomes evident that although the NMW
was introduced to reduce poverty, it may potentially hold negative consequences
for sustainable employment, which may increase inequality and unemployment.
