No labour broking ban expected

The Information Technology Association (ITA) doesn't believe industry should be worried about a possible ban of labour broking.

However, it adds that only the draft amendments to the Act will reveal the fate of the practice.

Janette Cumming, vice-chairperson of the ITA, says draft amendments to the Labour Relations Act are expected within the next two months, but - in the meantime - talks continue.

National Economic Development and Labour Council (Nedlac) negotiations on various proposals are under way, following heated public hearings across the country.

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.

Amendments, which were proposed by minister Membathisi Mdladlana earlier this year, are with Nedlac. The proposal document shows the department is moving towards increased regulation instead of an outright ban.

The Congress of South African Trade Unions (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.

laws to improve the regulation of the practice already exist. While there are labour brokers that openly flout labour laws, the main issue is government's inability to enforce its own laws, she says.

“The department of labour is not enforcing the current laws properly... they just don't have the capacity. By their own admission, they're struggling to enforce their current laws.”

The Confederation of Associations in the Private Employment Sector, of which the TIA is a member, has proposed the establishment of a statutory Private Employment Agency Board. This entity would license, investigate and de-register non-compliant temporary employment service providers. This would ensure existing Acts, such as the Employment Equity Act, the Skills Development Act and related Acts are not ignored.

“Banning labour broking is not going to solve the problem. There are so many atypical workers out there - it doesn't matter if it's a company or an individual - exploitation can still continue. A ban would cut out one of the symptoms without addressing the cause,” says Cumming.

The Democratic Alliance (DA) has also denounced calls by Cosatu for an outright ban of labour broking, saying it reflected “narrow interests”.

“So much for criticising the so-called 'narrow interests of the capitalist classes'. Cosatu is trying to ban labour brokers in a direct attempt to boost its own membership. Its cries about enslavement and exploitation are hysterical nonsense, designed to distract attention away from Cosatu's self-interest-driven lobbying,” says Andrew Louw, the DA's shadow minister of labour.

The DA says Cosatu's unwillingness to open debate and its unwavering stand for an outright ban, is worrying.

“They will push for such a policy shift, regardless of who is hurt or what the cost will be to the economy and ordinary South Africans. And all indications, at present, are that the cost will be significant, since as many as 500 000 South Africans risk being placed out of work by a ban on labour brokers,” says Louw.