Termination of Telkom workers' contracts highlights negative impact of changes to Act

Telkom's decision to not renew the employment contracts of 480 temporary employees at its call centre once again draws attention to the potential negative effect of the Labour Relations Amendment Act on employment, trade union Solidarity said today.

The trade union said the new legislation, which came into effect on 1 January, will lead to fewer people finding work at all and the contracts of temporary employees not being renewed after three months. The new legislation requires employers to offer temporary employees, who have been in their employ for more than three months, the same benefits as permanent employees.

Solidarity Deputy General Secretary Johan Kruger said the government wants to force employers by means of the new legislation to employ temporary workers permanently. "The amendment of section 198 has the opposite effect, however, as it discourages employers to employ temporary workers. Companies will increasingly subcontract services or scale down certain activities rather than employ temporary workers," said Kruger.

Kruger warned that Telkom's move could be the beginning of a flood of similar actions by other employers fuelled by the new legislation. "Solidarity will make sure that the contracts of its members who are employed on a temporary basis at companies will not be terminated prematurely or in an irregular manner as a result of the new legislation," he said.

He added that the government should guard against implementing legislation that hampers employment if it is serious about its promises that more job opportunities will be created for South Africans."

Statement issued by Johan Kruger, Deputy General Secretary: Solidarity, January 9 2015

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