Regulate, but don't give deathblow - warns Solidarity over labour legislation
Irresponsible changes to legislation could jeopardise more than 1 million jobs
Regulation, not the deathblow, is needed to deal with the issue of labour broking, the trade union Solidarity warned today. The trade union also severely criticised the alleged efforts by Cabinet to ignore findings in a report on the impact of the proposed amendments to labour legislation, the Regulatory Impact Assessment (RIA). The report claims, among other things, that hundreds and thousands of job opportunities may be lost if amendments are implemented.
The Solidarity Research Institute (SRI) will release a comprehensive report on the implications of the proposed amendments to the Basic Conditions of Employment Act, the Employment Equity Act and the Labour Relations Act as well as the publication of the Employment Services Bill soon. The trade union will submit the findings in the report to Parliament. Public hearings regarding these bills started in Cape Town yesterday. The public have until 17 February to comment on the proposed amendments.
Meanwhile, Johan Kruger, head of the SRI, emphasises that it is clear that the proposed amendments could have severe negative consequences. "The labour market would come under severe pressure if labour brokers were, in effect, to be declared redundant, if restrictions were to be imposed on strikes and if the Director-General of Labour's powers were to be expanded," explains Kruger.
"Although the current proposals do not impose a direct and complete ban on labour brokers, they essentially declare the function of labour brokers redundant. The likely result of certain clauses, for example, determining who the employer of labour broker employees is, is that fewer of these employees will be able to be contracted. In addition, this legislation will not necessarily result in an increase in permanent appointments, which could lead to a crisis," says Kruger. "The responsible regulation of the industry is crucial, but the present proposals will have a more negative than positive effect on job creation and could jeopardise the jobs of an estimated 850 000 employees who currently work in this system. It is essential that a healthy balance is found between the protection of employees and job security."
According to the RIA, there were approximately 2,13 million employees who were classified as, temporary or seasonal employees in South Africa in 2007. The RIA states clearly that the proposed amendments to legislation regarding temporary employees could eventually lead to a rise in unemployment. "To go ahead with the proposed amendments in spite of warnings in the RIA would be unwise, as thousands of employees could be deprived of an indispensable income" said Kruger.
"In addition, proposals on the restriction of employees' right to go on strike are unfair. Solidarity is completely in favour of responsible strikes, as they are a very important instrument for employees to exercise pressure," according to Kruger.
Kruger further points out that the proposal in respect of the Basic Conditions of Employment Act to expand the jurisdiction of the Labour Court is not advisable. "The court is already inundated by urgent work. Transferring cases that could be heard in other courts to the Labour Court would place undue pressure on it," explains Kruger.
"The government's plans to create 5 million new job opportunities will definitely not be accomplished by means of these amendments to legislation. Job opportunities will, in fact, decrease as a direct result of the proposed amendments, which we, as a responsible trade union, cannot support," he adds.
Solidarity's report will offer a critical perspective on the effect of the bills and will make proposals regarding amendments.
Statement issued by Johan Kruger, Head: Solidarity Research Institute, January 19 2011
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