Putting people first

The Wolfaardts are South African farmers who put people first in the running of their businesses. This piece was first published in 2004, after a journey to Cape Town, South Africa.

Put against the stand point of whites who in the apartheid days enjoyed the luxury of paying slavish wages to black and coloured labour hands, and still want such to continue now when there is a new dispensation, the Wolfaardts must be commended.

Julie Streicher, a white who witnessed the dehumanisation of non-whites, the black man in particular, related the story in details. According to her, officially, now, an appropriate and meaningful minimum wage is being pushed but the whites are not comfortable with it.

They hold to the archaic view that at least they are providing means of livelihood for those they have hired and as such these ‘fortunate labour hands should be grateful. This is the view that is still being held 10 years after apartheid!

Profits for people
But at the Wolfaardts, it is a different picture altogether. The Wolfaardts are thinking ‘profits for people.’ Ingrid, one of the white farmers, says “our natural inclination is always to put people first (sounds Pat Utomic), because we believe that people lead to profit.” She was quick to add that “there is however no guarantee that putting people first will give rise to financial success.

“In the current depression we have in the fruit industry, the advantage we have as a people’s company is that we have 200 people pulling together to make it work and get us through, as opposed to one or two key people in management who have to think up all the plans to make it happen.”

How sincere can an entrepreneur be in respect of this talk of people first when, generally speaking, the ultimate goal of the business person in a free market economy is to make money, make good money? Can the Wolfaardts’ remuneration system qualify as putting people first?

Julie reports them as a duo that always put themselves in the shoes of their employees. She reports them as saying, “We ask ourselves if we are willing to live with that salary, in that house, doing that sort of job?”

And a gauge of the fairness of the Wolfaardts’ remuneration package is reflected in Ingrid’s reaction to meeting her staff in Ceres on a shopping Saturday: “It’s wonderful to see people radiating good health and confidence as they go about their business in town. I am proud to be associated with them. It’s an easy relaxed relationship – greeting Lea with a hug in front of the bank, saying: “How gaan dit (How are you). Gaandit goed met you? (Are you well?)” – That’s Afrikaans for you; there are 11 spoken languages in South Africa and by extension, 11 ethnic groups. I hope I am right? It has to do with normalising relationships.”

Perhaps, the scenario here will be clearer if you imagine Mike Adenuga of Globacom or humility epitomising Aliko Dangote or late M.K.O. Abiola hugging and chattering away with his low cadre staff on Broad Street, Lagos!

For John Wolfaardts, “one can consider people as one of the required components along with fruit, cartons and machines, in the manufacturing of products, but people are not a means to an end for us.” He explains that “people are creating products and are not part of the components required to produce the product. If people are merely one of the components, then there will automatically be a very clear division between business and labour, and trade union will be the interface between the two.”

John and Ingrid have taken an alternative route, where all the people, at all levels take ownership and responsibility for the production process. Says John, “Ingrid and I don’t separate our life philosophy from the way we do business. The way we go about with our children and our friends is the same way we interact with all the people in the workplace…”

The path the Wolfaardts have taken in not an easy one. Many entrepreneurs in Nigeria and elsewhere, where free market economy is the vogue, will agree. And Ingrid is sincere about this. “Being part of this exciting, but also difficult journey has made me find a depth in myself which I never knew I had. There is always an element of uncertainty when you try to find a new and truthful way of dealing with the challenges of your environment, but I would not want it otherwise.”

Skaapriview and Northridge
John and Ingrid produce and export fruits. Skaapriver is a production client of Northridge Packing Store, which like Skaapriver, is also owned by the Wolfaardts. Skaapriver apart, 23 other growers of various fruit kinds far-flung from the Wolfaardts’ Ceres, also supply fruits to Northridge for export. There is beauty in this business arrangement which our local entrepreneurs can take a queue from. Produce fruits, outsource supplies to make large tonnage (just like cocoa, cashew nuts or sesame seed exporters outsource supplies tonnages of commodities so that they could meet contract deadlines) and own independent outfits for export. Our entrepreneurs can even go a step further like Multi-Trex is currently doing with cocoa, by processing commodities for export.

Nigerian manufacturers of Chivita and Caprisone import pineapple concentrates from Accra Ghana. If Ghana can do it, why can’t we do it?

Northridge, I gather, was one of the first companies (in 1997/98) season) to venture into export marketing. There was no one for it to learn from then. It made mistakes and learnt and became fit for the business. We can do same, more so when we have many to learn from.