Rigid labour laws kill jobs
Note to editors: The following statement was distributed at a press conference hosted in Parliament today by Sejamothopo Motau MP, DA Shadow Minister of Labour, Tim Harris MP, DA Shadow Minister of Finance, and Andricus van der Westhuizen MP, DA Shadow Deputy Minister of Labour. A copy of the DA's position paper on the amendments to the labour bills can be downloaded here.
The proposed amendments to the Basic Conditions of Employment Act and Labour Relations Act will increase the cost of doing business, reduce South Africa's attractiveness as an investment destination and, ultimately, destroy jobs.
This is why the DA cannot support the amendment bills in their current form.
The Department of Labour is not currently in a position to predict the impact of the amendments on the South African economy. A Regulatory Impact Assessment (RIA) conducted in 2010 suggested that the jobs of 2.13 million temporarily employed South Africans would be jeopardised if the bills were implemented in their original form. Important changes have since been made to the bills, but the current drafts are yet to be subjected to a RIA.
We cannot gamble with the future of South African workers. The DA therefore calls for a new RIA to be completed to determine the effect of the current proposals on economic growth and job creation before any decision is taken on this draft legislation.