Labour broking debate rages on

Johannesburg, 27 Aug 2009

South African unions have called for the widespread banning of labour broking, as private industries urge government to regulate and not ban the practice.

In Parliamentary sessions held over the last two days, union representatives said labour broking and outsourcing do not contribute to government's decent work agenda.

“Labour brokers were not just a political issue, but a main cause of socio-economic decline in SA. No amount of regulation could catch these people,” said a representative of the South African Municipal Workers Union.

The Department of Labour has proposed amendments to the Labour Relations Act, which would effectively eliminate labour broking, in an effort to deliver on its mandate to create decent jobs and protect vulnerable workers.

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.

Ban it

The Information Technology Association and Business Unity SA have contributed to the growing voices opposed to the minister's proposals. The bodies indicated the IT industry would be negatively impacted by proposed amendments.

They note amendments would result in the end of skills-based services and spell the end of the outsourcing industry. If labour broking is banned, skills-based services, such as consulting, outsourcing and sub-contracting, would be termed illegal.

While labour brokers who gave their submissions noted the practice was an essential part of several key industries in the country, union groups countered this by saying the practice should be banned across the board.

Also present at the hearings were the Metal and Electricity Workers Union of SA, the Confederation of South African Workers, Agric Western Cape, Solidarity, Business Leadership SA, the Congress of South African Trade Unions and Business Unity SA.

Parliament received over 35 written presentations on labour broking and whether to ban it or re-regulate it, before the hearings began. Over two days, some 40 submissions had been scheduled to present and face public questioning.

Regulate it

The private sector and labour broking representatives noted that sufficient legislation exists, and current attempts to alter legislation would over-regulate already compliant industries.

The Democratic Alliance questioned what would happen to the millions of people who worked through labour brokers if this kind of employment just disappeared. The party noted the use of specialised labour broking was a preferred option in many countries and that the practice was growing.

“We support the drive towards better regulation, but believe this should be achieved through greater enforcement, co-regulation and not by creating debilitating legislation that could become a stumbling block to direct foreign investment and job creation,” said a representative of the Association of Personnel Service Organisation.

The chairperson of Parliament's portfolio committee on labour, Lumka Yengeni, noted that, while strong views were being expressed by both sides, some key questions still needed to be answered.

“Several issues needed to be debated. What are we talking about when we talk about labour broking? What is your benefit? We are talking about human beings who must earn a living and make a decent life. You don't care, because what you want is profit. We understand we don't have a skills shortage. We all want to contribute. We want to know what is to be done, so all of us can benefit,” she said.