Labour broking bill drags on

The year-end deadline for signing a Labour Relations Act (LRA) Bill into law may not be met.

Amendments are being made to the LRA, specifically regarding labour broking and its possible ban or regulation.

“No amendments have yet been finalised. The Committee has made recommendations that will be effected by the Department of Labour as soon as the report adopted by the Committee is given a green light by parliament,” said Parliament's labour committee chairperson, Lumka Yengeni in March. She added that upon getting the green light from Parliament a Bill would be signed in at the end of the year.

Labour minister Membathisi Mdladlana had initially wanted the amendments to the LRA to be made by April. This deadline was not met and now it seems that the legislation will not materialise in time for the deadline indicated by Yengeni either.

Democratic Alliance (DA) deputy shadow minister of labour Ian Ollis explains that the draft amendments were handed to Cabinet at the end of May.

“Cabinet did not wholeheartedly endorse the changes. It had some objections with the clauses and sent it back to the Department of Labour to redraft it.”

He adds that the redrafted bill should be expected in approximately a month. When Cabinet is happy with it the draft will go to the National Economic Development and Labour Council (Nedlac). Ollis says it is only when Nedlac is happy with the amendments that Parliament will have a chance to see it.

“At the moment we have nothing to review. We have no idea what's in it and Cabinet hasn't said what its objections were.”

Ollis says the deadline is realistic only if the draft makes it to Parliament by the end of July.

“It all depends on how Nedlac gets through it,” adds Ollis. He suspects that it will take a while before Nedlac can approve any changes.

The deputy shadow minister says Nedlac might reach a deadlock. He explains that the changes to the Act are not popular and Nedlac may say it can't agree and so there's a deadlock.

There might be a backdoor agreement made that will speed the process up, according to Ollis.

“If it [draft legislation] doesn't come to Parliamnet by the end of July then we can't get it out by the end of the year and I've got my doubts.”

The Department of Labour is proposing amendments to several Acts, which all fall under the Labour Relations Act, and section 198 (temporary employment services) specifically, according to Yengeni. The new amendments would either effectively abolish labour broking, or increase regulation of all temporary employment services.

“Business and labour are fighting over this and the ANC is mediating. Cosatu wants it banned and business wants it regulated. I agree with business. The more options you have the better for the country.”

He says the question is just in the detail. It's about whether the workers get benefits, support systems and medical aid and some brokers don't provide this. “So clearly there is an argument for regulation.”

Initial proposed amendments by the DOL suggest that the department is leaning toward regulation.

“The main intention here is to address the problem of labour broking, and making sure the abuse of workers is prohibited and contract work, subcontracting and outsourcing are regulated,” says Yengeni.