Labour Minister must repeal job-killing LRA amendments
New research conducted by the Confederation of Associations in the Private Employment Sector (CAPES) has confirmed what the DA has said all along – South Africa’s labour legislation is destroying jobs and affecting the livelihood of millions of South Africans. This legislated job destruction cannot continue any longer.
The Minister of Labour, Mildred Oliphant, must now place rationale and logic above ideological and political allegiances and repeal the amendments to section 198 of the Labour Relations Act (LRA) with immediate effect.
CAPES, which represents over 700 000 temporary workers, conducted research into the effects of the Labour Relations Amendment Act, which came into effect in April this year. The amendments slashed the term limit for temporary employment from 24 months to three months, rendering an employee automatically permanent after three months of employment.
The findings of the research are dismal yet predictable, as over 50% of workers previously employed via labour brokers lost their jobs and became unemployed, with only a small fraction - 20% - keeping their jobs and becoming permanently employed.
The DA has consistently opposed these amendments, warning against the impact they would have on job creation and unemployment.
The importance of labour brokers and temporary employment service in transitioning people into the formal job market cannot be overstated. That is why the DA’s position has been to revert to the two-year limit on temporary employment, which strikes an appropriate balance between job creation, the protection of workers, and skills and experience development.
Temporary employment services have been the largest source of job creation since 1994, according University of Cape Town economics professor Haroon Bhorat.
It is mind-boggling that, in spite this, Cosatu is still calling for an outright ban on labour brokers. In essence, Cosatu’s message to those who cannot find work is simple - we want to make it more difficult for you to find work.
The DA appeals to Minister Oliphant to resist any political pressure from Cosatu and to repeal the current amendments, allowing millions of young South Africans a way in to the labour market.
The DA will continue to fight for a labour regime that protects the rights of workers, affirms investor confidence, helps preserve existing jobs and creates new ones for the unemployed.
Every South African must be afforded the opportunity to find a job, which brings with it freedom, dignity, independence, and an opportunity to better one’s life.
Statement issued by Ian Ollis, DA Shadow Minister of Labour, 7 September 2015
