The Department of Labour (DOL) has made a distinction between outsourcing services and general labour broking - signalling that outsourcing services could be safe from any possible ban on temporary employment services.
Thembinkosi Mkalipi, senior executive manager: collective bargaining at the DOL, says that, while the department maintains labour broking is an exploitative practice, it will introduce separate provisions for outsourcing and sub-contracting.
“On matters concerning sub-contracting and outsourcing, legislation would spell out clearly how a client employer would be considered to be a joint employer in cases where a substantial degree of control over outsourcing arrangements is exercised,” he says.
The department 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.
While Mkalipi says the DOL is looking to introduce legislation that would revert responsibility back to the main employer, he didn't address how the department would respond to calls by the Congress of South African Trade Unions (Cosatu) for a sweeping, outright ban of temporary employment services.
He explains that the DOL believes labour brokers undermine the provisions of the law dealing with minimum wages and collective agreements, health and safety provisions, the right of workers to freedom of association and the job security of workers.
Problematic
While the department's proposed amendments indicate the move towards greater regulation, only the draft amendments will reveal the fate of temporary employment services. The changes are expected within the next two months, with the minister pushing to have the Bills passed by April 2010.
The National Economic Development and Labour Council (Nedlac) has held negotiations on various proposals and heated public hearings have also been held in Parliament.
Mkalipi adds that the DOL recognised it is a complex issue and solutions would have to be found, which took complexities into consideration. The department's proposals show it is looking to decrease worker flexibility, change wage structures and increase ministerial powers.
However, Cosatu has rejected the department's proposals, saying a total ban is the only solution. Following a resolution taken at its congress, the federation says it will embark on a mass strike if government fails to ban labour broking by 2010.
“The department will develop a clear position paper on labour brokers. Our view is still that labour brokers were dehumanising people. But we acknowledge that, on a conceptual level, changes are problematic,” Mkalipi notes.
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