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THE SMART NEWS SOURCE | Feb 10 2010 07:39 | LAST UPDATED Feb 10 2010 07:39
Business | General Business

Cape wine workers paid less than R60 a day

Feb 13 2009 07:15
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Workers who produce hundreds of thousands of bottles of wine for the United Kingdom market are struggling to survive on wages of about R57 a day and are facing increasingly harsh conditions, according to a new report.

The study from War on Want claims that thousands of employees working on wine-producing farms in South Africa face low pay and the threat of sudden dismissal as the pressure to produce cheap wine for the UK intensifies.

The report, which was based on interviews with workers on wine farms across the Western Cape, said that many employees struggle to feed their families and cannot afford to pay for healthcare or their children's education.

Simon McRae, senior campaigns officer at War on Want, said: "Many people will be outraged to learn that the South African wine bought in supermarkets costs more than the people who produced it earn for a hard day's labour."

The study does not name individual brands and does not cover all South African wines. However, it says the employees it interviewed were some of the poorest and most exploited in the country, and called on UK supermarkets and the government to take action.

South Africa's wine industry started 350 years ago when Dutch settlers planted the first vines in the Western Cape. Last year more than 400-million litres of wine were exported and the industry employs about 250 000 people. The UK, the biggest market, accounts for 27% of exports.

Conditions for grape pickers were notoriously bad during the apartheid era. Producers say things have improved in recent years, although they admit there are still problems. Jo Mason from Wines of South Africa, an industry-owned marketing body, said: "Progress has been made ... but we recognise that there are still issues that need to be addressed."

The report says pressure from UK supermarkets has forced suppliers to cut production costs. Sikhula Sonke, a trade union with about 4 000 members on 170 wine farms, helped compile the report. Ida Jacobs, a union organiser, said: "The pay is low and you can lose your job suddenly, and often that means losing your house. Workers who join the union or campaign for better rights are often victimised."

Most workers are women employed on seasonal contracts. Bella, a 29-year-old contract picker worker who earns R300 a week, said: "I am struggling to keep my head above water. When I think of my child's future I am very worried."

CONTINUES BELOW


The report calls on consumers to carry on buying South African wine, but says the government should legislate to force retailers to protect workers.

British supermarkets said they were committed to protecting the rights of workers in their supply chain.

Tesco said: "We take our responsibilities on the South African supply chain and every country we operate in extremely seriously. Tesco sell a range of Fairtrade wine from the republic. We are also members of the Wine Industry Ethical Trade Association who even War on Want highlight for best practice. All our South African wine suppliers' wages and benefits are above minimum levels."

Sainsbury's said it expected all its suppliers to meet its sourcing standards. - guardian.co.uk © Guardian News and Media 2009
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This is ridiculous. I cant't believe that there are still people that are overlooking the ill treatment of our people. These businesses are making way more money and I am sure that R 70 an hour for a worker is a drop in their pockets. I stand against it and they should be prosecuted.
Neo Malay on February 13, 2009, 7:37 am
I am surprised to see these workers earn so little. I have been living in the UK for a year now as a student and I cannot afford to purchase South African wines and goods in retail supermarkets here. They are so expensive, more than £5 for a lousy bottle of wine (which is about R72.00 on todays' exchange rate). Although UK locals buy them, because South African wines are generally tasty, they bear some funny names from the wines we are used to at home. Fruits are even worse. 200g of grapes from South Africa at Sainsbury's cost about £3.99. I have not eaten grapes, peaches, apricots, plums for a while, and I wonder how much profits these supermarkets make out of this. I am really interested in doing this price comparison for South African goods retailed in the UK (especially fruits, vegetables etc) just to see who really benefits out of this. Is it the farmers in South Africa (who then rob their employees by giving them an unbearable pay) or the UK retailers (who continue to enjoy large profits out of unequal exchange from the developing world.) I have always asked myself these questions. Even by UK standards, for the consumers here, these goods are expensive. I wonder how much the retailers buy these goods for (say grapes per box), how much import duties or customs, packaging and other costs they pay for, and what is their ultimate profit margin compared to that one made by producers (the farmers in RSA) and the pay for the workers. Who ultimately pockets the surplus value in this chain. Is there any literature that I can consult on this?
Mdu Manyoni on February 13, 2009, 3:56 pm
episodes of "chef!" notwithstanding, you generally cannot buy english wine. too many people, not enough space for proper vineyards. by default, it must then be imported.

the cost of wines is directly proportional to the distance it has to travel to get to your local store. so R20 wine in mdantsane, east london is often R80 in dagenham, east london.

south africans, even educated ones, are grossly underpaid. now, while i think it's wrong that R57 a day is a wage -- which is above minimum wage, by the way. but seeing that, in a 37.5 hour work week, R100,000 is only R51 per hour, the problem with "low pay" is a structural thing. given how literate you have to be in order to get a job that pays R51 per hour, it's a safe bet to say that those workers getting R57 per day aren't particularly literate, and are paid accordingly.

capitalism at work. and to be honest, that's marxism at work, too.
Tokunbo Olowokandi on February 13, 2009, 9:04 pm
Tesco lies. They make their best profits out of Chinese sweatshop labour too. These wouldn't be anything to do with the DLA ( especially Hanekom's ) great emancipation of the workers wine farms ? I certainly hope not. Next thing it'll be back to the dop system.
Terry E on February 13, 2009, 11:28 pm
Mdu Manyoni- I don't agree. The farmer, local or foreign still gets the least for their produce. Most of the profits are made by intermediate dealers, international cartels and transporters. Remember that in the EU there are no import taxes between countries and transport is well regulated. In season, the UK and the EU are flooded with cheaper european produce. The exhorbitant prices you quote are on imported out of season goods from non-EU countries. If you want grapes in winter, you pay the price. In August the price drops to 10% of what you mention. Having said that, I agree with the wage issue. These people must earn more and someone should take this up seriously with farmers.
fred sevillano on January 7, 2010, 9:25 pm
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