ZTE, the Chinese-owned cellular equipment manufacturer, has about 400 contract people, almost all of whom are Chinese, working in SA to fulfil its R2.9 billion contract with network operator Cell C.
Late last week, the Department of Home Affairs (DHA), along with the SA Police Services, raided ZTE's premises in Durban and Cape Town. The aim of the raids was to inspect and verify that the contract workers were legally living and working in this country.
The DHA claims 16 of ZTE's employees were detained. However, ZTE spokesperson Chris Fuentes says only four people were detained - three in Durban and one in Cape Town.
“Our employees were detained on the sole reason of not having their papers with them when the authorities arrived. They were detained, but released the following morning once their papers had been produced,” he says.
ZTE is contracted to install and build Cell C's network in the southern part of the country. This includes installing the new equipment in at least seven cities, including Cape Town, Durban, Port Elizabeth, and East London.
Nokia Siemens Networks is responsible for constructing the rest of the network that includes Johannesburg, which should be launched this Wednesday.
ZTE came under fire from trade union movement Cosatu, which issued a statement saying South African workers should be used, and that the Chinese workers were being exploited as they were willing to work for a lower wage.
However, Fuentes disputes this, saying: “Worldwide, there are very few people who are able to install third-generation telecommunications equipment. SA is not alone [in terms of skills shortages] and so we have to bring in people.”
Fuentes says the number of contract workers being brought into the country fluctuated, depending on the site where the equipment had to be installed.
“Our biggest problem is getting them proper papers. They enter the country on a 90-day business visa and then we have to apply for temporary work permits, while they are in the country. However, the Soccer World Cup and the public sector strike had delayed some issuances,” he says.
ZTE will start constructing 1 000 base stations to extend Cell C's HSPA+ (High Speed Packet Access) network in rural areas and this is expected to continue well into next year.
“With this phase, 90% of the workers will be South African, as most of the work involves civil construction and 80% of the cost will stay in SA,” Fuentes says.
Cell C CEO Lars Reichelt has asked ZTE for details concerning its employment practices in rolling out the network. He says the operator was unaware of the situation until the weekend media reports.
A Cell C statement says the contract with ZTE is a "turnkey" contract, meaning ZTE, as an independent contractor, is responsible for delivering a clearly defined deliverable, and is further accountable for engaging its own employees and sub-contractors.
“Cell C is not responsible for the recruitment policies or processes of ZTE. Cell C has asked ZTE to urgently provide it with information in this regard, and has since been assured by ZTE that all of its workers have the necessary and legal documentation to work in SA,” the statement says.
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