Labour minister's renewed call for ban on labour broking is disturbing

Labour minister, Membathisi Mdladlana, has again yesterday called for a ban on labour broking. In a television interview on SABC 3, the minister indicated that he will not be drawn off his course of implementing a total ban on the labour broking industry. He further indicated that the Department of Labour would be tabling draft legislation shortly to give effect to this ban before the end of 2010.

This is a concerning new development. The fact is that this industry generates an annual turnover in excess of R23 billion. It places more than half a million temporary assignees in jobs every day in South Africa. The only reason that the ANC talks about banning labour broking is to appease Cosatu, who believe that they can boost their membership numbers, and thus their revenues, by outlawing the industry. Cosatu don't care about the fact that it would probably place half a million largely non-unionised workers out of work. This would be a move that would have severe ramifications for the South African economy, as we have said repeatedly. Brokers even provide temporary staff for government and state owned enterprises - they are recognised by both the private and public sector as a key component of economic activity, and provide a vital service to the workers they place and the companies they staff.

In fact, it is because the Department of Labour has neither the capacity nor the motivation to effectively control, inspect or police this industry that the labour broking industry has run into problems, but instead of actually sorting that out, the ANC would prefer to resort to grandstanding to impress their alliance partners.

In light of the recent ruling on labour broking in the Supreme Court of Namibia, and against the background of creating work opportunities, rather than destroying them, we believe that the outlawing of labour broking cannot even be an option on the table. We believe that a self-regulatory industry-appropriate board for this industry, along with the appropriate set of accompanying legislation is vital for the labour broking industry. This, coupled with a re-invigorated and effective labour inspectorate will bring about a growing, regulated industry which will be fair to all and put an end to any exploitation which may occur.

Instead of using the media to sow confusion, the minister should table appropriate measures to be properly debated in Parliament to give effect to these measures. South Africa needs more work opportunities and not less, especially in the current poor economic climate.

Statement issued by Ian Ollis, MP, Democratic Alliance deputy shadow minister of labour, February 4 2010

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