Decent work and economic growth in the South African agricultural sector

Abstract

Purpose: The research examined how decent work conditions influence economic growth, more specifically the impact on private household direct retirement investments. Pension or retirement fund contributions, which ought to be invested, accruing interest, served as a proxy for long-term direct investments, which would theoretically lead to economic growth, highlighting the role of improved labour standards in driving economic growth.
Design/methodology/approach: The rationale for the study was to address the lacuna of empirical evidence underscoring decent work conditions in the agricultural sector and the effect thereof on economic growth, such as long-term investment in a retirement fund. Data from 1006 agricultural workers obtained by means of the Quarterly Labour Force Survey administered by Statistics South Africa were analysed quantitatively. The sample was generated by means of a stratified two-pronged sampling technique. Descriptive and inferential statistical analyses were computed.
Findings/results: All the facets of decent work statistically significantly influenced the economic growth proxy except for the employee contract. A significant portion of the sample reported having access to fundamental rights such as paid leave and paid sick leave. Conversely, 91.7% of the sample did not have trade union membership, limiting collective bargaining power within the sector.
Practical implications: The agricultural sector could increase its contribution to economic growth by stimulating direct investment, for example, by providing agricultural employees retirement fund benefits.
Originality/value: The study highlighted gaps in the sectoral decent work conditions and emphasises the role of employee benefits in fostering economic growth, providing actionable insights for policy makers to improve labour conditions.