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Cosatu backtracks on ban

Farzana Rasool
By Farzana Rasool, ITWeb IT in Government Editor.
Johannesburg, 27 Mar 2012

After what it called the biggest mass protest in years, the Congress of SA Trade Unions (Cosatu) seems to be giving in on the issue of labour brokers.

The federation previously said it would accept nothing less than a ban on the industry, adding that it allowed for a modern form of slavery. Earlier this month, it carried out a nationwide protest against labour broking and e-tolling.

However, national spokesperson Patrick Craven now says the union is willing to come up with an acceptable solution with government regarding labour broking.

Reaching agreements

Earlier this month, Cosatu said labour brokers' workers are paid lower wages and have fewer benefits, like medical aid and provident funds, and [have] no job security at all. They can be hired and fired at any time by a phone call from the client company to the labour broker, and they can never plan their lives more than a week or two ahead.

“We demand a total ban of this modern form of slavery. Cosatu is adamant that labour brokers must be completely banned. They are nothing more than human traffickers, making huge profits by hiring out workers to their client companies as if we are no more than commodities like office furniture or stationery.”

However, Craven now says the federation would still support a ban, but is willing to work with government on other solutions that suit both parties.

“We are studying the Bills and will be making submissions to the Parliamentary hearings. Clearly there are opportunities to make progress because the ANC and government share our concerns around the treatment of workers. We are looking at ways in which we can come to an agreement. Government doesn't support a ban, but it shares many of our concerns with regards to the casualisation of work.”

Cosatu is currently in discussions with the ANC on the matter, as well as on the controversial e-tolling system.

Regulation versus ban

Draft amendments to the Labour Relations Act (LRA), Basic Conditions of Employment Act (BCEA) and Employment Equity Act were published in the Government Gazette, in December 2010. The amendments proposed a repeal of section 198 of the LRA, which regulates labour brokers, effectively prohibiting labour broking and leading to job losses, according to the Democratic Alliance.

Labour minister Nelisiwe Oliphant in February submitted the amendment Bills for the LRA and the BCEA to the Cabinet Committee, and the Bills were approved last week for submission to Parliament, where they will be considered by the Portfolio Committee on Labour before being submitted to the National Assembly and the National Council of Provinces respectively for adoption.

A range of issues were raised during public consultations and these are now contained in the Bills that are going to Parliament.

“The current amendments have their origins in the growing 'informalisation' or 'casualisation' of work that has become a feature of the South African labour market over the past decade,” said Oliphant. “Amendments to the LRA and the BCEA therefore have a major focus on addressing what is now commonly referred to as the phenomenon of labour broking.”

She added that the Labour Relations Amendment Bill 2012 and the Basic Conditions of Employment Amendment Bill 2012 are now very different to the Bills published in December 2010.

Temporary employment is now limited to genuine temporary work that does not exceed six months. In general, greater regulation of the industry has been proposed, as opposed to the previous ban of labour brokers.

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