SACTWU Welcomes New Tool To Defeat Bogus Cooperatives and Worker Exploitation
The COSATU-affiliated Southern African Clothing & Textile Workers’ Union (SACTWU) is delighted to finally welcome yesterday’s long-awaited publication of the Regulations for the Cooperatives Amendment Act, 2013. This completes the legislative tasks required to give full effect to the amendments to the Act - that came into operation on 1 April 2019. Workers and their unions now have the tools to bring the full might of the law down on the wicked scourge of bogus cooperatives plaguing tens of thousands of workers across the country. In the clothing industry alone there are estimated to be around 15 000 workers abused by bogus cooperatives.
Bogus cooperatives are simply an excuse to profit off the back of exploited workers. They are established when factory owners threaten their regular employees with retrenchment unless the workers migrate into a so-called cooperative and become members of those cooperatives. The warped logic is that members of cooperatives are legally considered self-employed and up until now have been exempted from minimum wages and labour standards.
Nefarious employers have seen this as an opportunity to cut wages and so workers in bogus cooperatives lose money and benefits. But it gets worse: these cooperatives remains under the control of the original factory owner who also takes all decisions around the working hours and conditions of workers, the nature of their work, and if workers raise concerns about anything, they are simply disciplined and fired on the spot by the former factory owner, or by their proxies in the cooperative. Bogus cooperatives are a stinking cesspit of labour and human rights abuses, and we are even aware of bogus cooperatives in which human trafficking has been reported to occur.
Many workers under bogus co-operatives have lost their Provident fund-, minimum wage- and trade union benefits.
Some bogus co-operatives have promoted human trafficking in places nearby the borders of our country, such as in Newcastle and other places.