Trade union Solidarity is the latest stakeholder to call for an impact assessment on the proposed labour legislation in its current form.
Business Unity SA and the Democratic Alliance also requested the same last week.
Solidarity, in its submission to the labour portfolio committee during the public hearings on the Labour Relations Act (LRA) and the Basic Conditions of Employment Act (BCEA) amendment Bills, said the total effect of the Bills on the labour market should be assessed.
Johan Kruger, head of the Solidarity Research Institute, said the cumulative effect of the proposed labour legislation could undermine the government's laudable aim of creating work.
Assumptions questioned
During the first day of public hearings on the Bills, law firm DLA Cliffe Dekker Hofmeyr made a submission on behalf of the Real Estate Business Owners of South Africa.
Its main concern was that the definition of “employee” in the LRA excluded independent contractors, which differed from the definition in the Estate Agency Affairs Act and failed to address the current differing opinions of whether an estate agent should be considered to be an employee or an independent contractor.
HR City made a submission on behalf of the AHI Employers' Organisation. The submission included the findings of research projects on employment in the small and medium-sized enterprise and the labour broking sectors.
Members queried its assumption that job losses had resulted from the announcement of changes to labour legislation rather than the prevailing negative economic conditions.
Eskom makes extensive use of sub-contractors and said it supports the objectives of the Bills, but urges that the amendments balance meeting the needs of employees and trade unions with the need to avoid an adverse impact on the financial viability and sustainability of employers.
Committee members asked for clarity on the reasons for excluding temporary employment services employees from being granted organisational rights and how the restriction on temporary services to a period of six months could have an adverse effect on business.
Cosatu fail
The South African Chamber of Commerce and Industry said the more stringent labour requirements in the Bills would have a negative impact on the creation of decent work, on meeting the national job creation targets, and on the ability of employers to remain competitive and financially viable.
It believes the need to protect workers against exploitation could be achieved in a more dynamic and flexible labour environment.
The Congress of SA Trade Unions (Cosatu) reportedly admitted in Parliament yesterday that it was not successful in getting a complete ban on labour broking. The federation led a nation-wide protest against labour broking and the controversial Gauteng e-toll system in March.
Abusing workers
The proposed amendments to the BCEA and the LRA arose from the public hearings on labour broking held in 2009.
The committee had found there was abuse of workers by labour brokers and divergent views on the issue of labour broking by various organisations representing labour and organised business.
To address this, the initial amendments to the Bills would, in effect, have seen the banning of labour broking. However, several stakeholders said this will harm job creation and thus the economy.
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