Ban brokers by 2010

The Congress of South African Trade Unions (Cosatu) has given government until the end of 2010 to ban labour broking, or face mass strike action.

Following statements made by leaders of the federation during its 10th National Congress, in Midrand, all Cosatu member unions have signed a resolution on labour broking. In a unanimous vote, all unions rejected notions that regulation should be increased, choosing rather to favour an outright ban of labour broking. The federation resolved to embark on a mass strike if government failed to ban labour brokers by the end of next year.

The Department of Labour is proposing amendments to several Acts, which all fall under the Labour Relations Act. The new legislation would either abolish or increase regulation of all temporary employment services.

Cosatu leaders have made repeated calls for the banning of labour broking throughout the congress. President of the trade union federation Sdumo Dlamini, VP Joseph Maqhekeni, and secretary general Zwelinzima Vavi, all called for the banning of labour broking, saying the practice was damaging workers' interests.

While business has called on government to regulate the industry, labour minister Membathisi Mdladlana and trade unions have called for the abolishment of temporary services and indicated they were no longer willing to table discussions on proposed amendments.

The Information Technology Association and Business Unity SA have indicated the IT industry would be negatively impacted by the proposed amendments. The bodies point out the amendments would result in the end of skills-based services and spell the end of the outsourcing industry.

The Cosatu resolution states members would set out on a Section 77 campaign at the end of 2010 if they don't get their way. This would allow them to strike in support of the non-wage-related dispute.

The resolution also calls for amendments to the Labour Relations Act, which would prohibit any form of incentives for practices such as outsourcing, subcontracting and corporate restructuring. Any legislation that diminished workers rights by transferring employer obligations should not be allowed, Cosatu stated.

Casual work needs to be banned and all registered casual workers should be recognised as full-time workers, the resolution stated. Measures should be introduced to protect seasonal workers, it added.

All unions agreed it was time a widespread review of labour legislation was carried out. They called for the reassessment of all labour laws, employment equity legislation and skills development initiatives.