Business has cautioned against any plans to ban labour broking, saying government would have to provide alternative plans to continue legitimate services carried out by labour brokers.
The Department of Labour is proposing amendments to several Acts, which all fall under the Labour Relations Act. The new amendments would either effectively abolish labour broking, or increase regulation of all temporary employment services.
Nedlac has held negotiations on various proposals and heated public hearings have also been held in Parliament. While labour brokers' submissions noted the practice was an essential part of several key industries in the country, union groups countered this by saying it should be banned across the board.
“Despite inflammatory remarks that accuse labour brokers of being slave traders, the fact remains that law abiding labour market intermediaries provide a valuable service to their clients and to the men and women who need employment,” says Kay Vittee, CEO of Quest Staffing Solutions.
Filling gaps
The Information Technology Association (ITA) and Business Unity SA (Busa), which have contributed to the growing voices opposed to an outright ban of labour broking, say the IT industry would be negatively impacted by proposed amendments. If labour broking is banned, skills-based services, such as consulting, outsourcing and sub-contracting, would be termed illegal.
Along with other private sector bodies and labour broking representatives, the organisations say the focus should be on increasing compliance and not on the over-regulation of already compliant industries.
Vittee adds that the range of services provided by labour brokers should not be disregarded. Payroll and administrative services are often outsourced to labour market intermediaries, and decrease the client's unit costs and relieve their administrative burdens, says Vittee.
Management services and systems, along with ensuring the continuous availability of large numbers of qualified candidates, competent and skilled candidates who receive training, are just some of the services provided by labour brokers.
Busa and the ITA note that amendments could result in the end of skills-based services and spell the end of the outsourcing industry. Government and industry would have to find ways to fill the gaps left by the ban, but government has yet to propose how it will do this, adds Busa.
Dual interests
Labour minister Membathisi Mdladlana previously stated the department would take quick and decisive action to ensure amendments to the Labour Relations Act are implemented. Mdladlana said workers' interests outweigh any other concerns and he is committed to implementing changes.
Vittee, however, notes the dual role of most labour brokers, saying they are as committed to their clients' success, as they are to individual employees. Contracts are negotiated to ensure both the client and employee benefit from the agreement, says Vittee.
“Each link in the chain of the candidate life cycle is extremely complex and demands the specialist attention which only a labour market intermediary can provide. To ban this industry will put an enormous strain on companies and the economy, not to mention the candidates who will suffer as a result,” concludes Vittee.
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