Johannesburg, 21 May 2010
Recent talks of banning labour brokers are largely a result of some middle-men abusing and exploiting workers. But what of the positive contributions by this profession?
The Department of Labour is considering abolishing labour broking in its new proposed Acts, but this could have a negative impact on the industry.
These expected changes in the Labour Relations Act are largely due to the abuse of the lower-skilled worker. Some labour brokers are exploiting lower-skilled workers that are desperate for income and naive when it comes to their rights. They are either not paying them on time, not paying them enough, or not paying them at all. They can away with doing this at the moment because of a lack of jobs and saturated job markets.
It is not fair, however, to blame all the facilitators because of a few bad apples. There are so many relationships between workers and labour brokers that are extremely beneficial to both parties. It is not common practice to abuse workers.
Furthermore, unions are disagreeing that labour brokers create employment, insisting they simply displace jobs, not create them. This cannot be argued, but labour brokers are integral in bringing employers and workers together. This is often difficult or even impossible if a worker acts in his own capacity.
If a worker had to go to market with their skills and look for employment themselves, they would spend 15-20% of their time looking for work. In an area where the worker is looking for work that is in low demand, they could spend up to 50% of their time looking for a new job. So, a jobseeker can go the cheaper route of looking for employment himself, or pay the labour broker to do it on his behalf. Ultimately, the worker stands to save money through hiring a broker, because the costs incurred from not having a job is a lot worse.
Furthermore, a labour broker is proficient in what he does - he knows the job market and has the contact needed to ensure fast and accurate job placements. The broker acts as a brand or marketing manager for the worker and takes on the responsibility of finding his clients employment.
Banning the labour broker will bring about limited options for the worker. They might not get the best opportunities available to them, or may have to settle for something less or different to what they are qualified in.
The labour broker gives the worker choice by supplying them with job opportunities they would not have been able to locate on their own and find them the best possible job in their area of expertise. They take the stress and time needed to suss out the job market away from the worker.
Lower skilled workers should be protected, but not to the extent that their rights to a labour broker are taken away.
The Department of Labour is now talking about regulating the industry and labour brokers specifically, as opposed to banning them outright. This is a good direction to be moving in, as long as the restrictions do not cause labour brokers to become unprofitable or makes it impossible for them to do business.
Remember, professional labour brokers act as a switch that enable the hiring process, which makes the economy more efficient. They ensure the job market remains competitive and that workers get the best offer possible from potential employees.
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