COMMITTEE REPORTS National Assembly Report of the Portfolio Committee on Labour on the Public Hearings on Labour Broking, Dated 23 March 2010
9 [ 596 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, COMMITTEE REPORTS National Assembly Report of the Portfolio Committee on Labour on the public hearings on Labour Broking, dated 23 March 2010
1. Introduction
The issue of labour broking generated a lot of discussion recently, with claims that labour brokers exploited workers. Some people called for a total ban of labour broking while others called for the industry to be regulated. Against this call, the Portfolio Committee on Labour decided to conduct public hearings on labour broking at Parliament and in the provinces.
2. Aim of the public hearings
As part of the Portfolio Committee’s oversight role and due to the growing interest in the subject of labour broking both internationally and in South Africa, coupled with concerns from interest groups and affected parties, it was decided to ascertain the views of the public on this matter. The purpose of the public hearings was to look at the challenges that the country was faced with in regard to labour brokers who were not operating in accordance with labour law prescripts, and
how government can regulate labour broking in South Africa. 2010 March 24 Wednesday,
Participation from the various stakeholders was intended to assist the Portfolio Committee in understanding the nature and extent of labour broking in South Africa, given that there is currently no extensive research done on the subject. However, this growing trend has major policy implications in the labour market due to growing anomalies created by labour brokers. The Portfolio Committee’s call for public hearings follows a process already at its pinnacle between the social partners at NEDLAC and the Department of Labour. The public hearings were meant to:
x Bring to light the extent to which labour broking practices are taking place in South Africa, including identifying sectors most affected by labour broking x Assist in preparing the Committee when dealing with relevant legislation to identify gaps, contradictions and further challenges in policy implementation x With the varied inputs from stakeholders and organisations, the Portfolio Committee expects to apply an impartial view when drafting final recommendations to be considered by Parliament. 2010 March 24 Wednesday, 3. Public hearings at Parliament, 25-26 August 2009
3.1 Presentations by different stakeholders and individuals
The Committee heard oral input from various organisations and individuals. The following issues were raised:
3.1.1 Consulting Engineers and Project Managers
x It would be difficult to operate the labour market without labour brokers as they provide flexible workers x If people employed through labour broking lose jobs, they are placed somewhere else in the labour market 597 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x There are brokers who operate problematically, and the system should be regulated
Recommendations x Labour Broking should be regulated x If there are people operating unscrupulously the Department of Labour (DoL) should deal with them harshly
3.1.2 Staffataclick
x Acknowledges the abuses that exist within the Temporary Employment Services (TES) industry x If regulated, the TES has potential to make an even more positive contribution to the socio-economic climate of South Africa
Recommendations x Propose regulation of the industry through the Staff Data Management System (SDM) x The SDM will register all labour brokers, and the DoL will also have access to all data in this system x Through the system, all TES would be monitored to see if they complied with the Bargaining Council regulations x Deregister all non-complying labour brokers
3.1.3 Mr Vincent Phillips (individual)
x Will the system not contravene any laws that are there to regulate employment 9 [ 598 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x To suggest banning of labour brokers is not an option x The Labour Relations Act is clear on the definition of employer and employee x Labour brokers should force companies to employ people permanently
Recommendations x Labour Brokers should force companies to employ people permanently x Banning will not assist in solving the Labour Broking problem but there should be regulation
3.1.4 Association of Personnel Service Organisation (APSO)
x APSO promotes self-regulation x Acknowledges that there are TES providers who do not comply x APSO’s current work can be automatically extended to cover all parties operating in the labour recruitment industry and any non-complying party be eliminated and prohibited from operating
Recommendations x Supports greater regulation of the industry, including better enforcement, co-regulation and not by creating debilitating legislation that could become a stumbling block for direct investment and job creation x There already exists sufficient legislative framework and attempts to alter this framework will further complicate the state of affairs within the industry ensa,2 ac 2010 March 24 Wednesday, x There should a Co-regulatory body such as the Private Employment Agencies Board
3.1.5 DEAF SA
x Ban labour brokers in order to protect and not exploit workers x There is a problem with labour brokers who act as interpreters but do not qualify to interpret sign language x Deaf people apply for jobs through labour brokers but do not come back to DEAF SA when they are fired
Recommendations x Ban labour brokers in order to protect and not exploit workers ensa,2 ac 2010 March 24 Wednesday, 3.1.6 SOLIDARITY
x There should be a way of regulating the system by means of legislation x Temporary employment should become permanent x Section 189 of the Labour Relations Act must be amended x In favour of setting up a minimum wage x The role of the Department of Labour should be increased so as to assist in conducting compliance within the brokers x International laws must be rectified 599 ]
NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Recommendations x The banning of brokers is not the solution (instead it will lead to increased poverty and unemployment) x Regulation of the labour broking industry is a far more realistic option x Over-regulation of the industry will have negative consequences x A Code of Good Practice should be developed through a stakeholder consultation process x Co-regulation with government and labour x Clear definition of periods at which the employee under the broker Temporary Employment Services (TES) should fall into the responsibility of the client x TES industry should set up its own Bargaining Council that will cover all sectors x Existing Bargaining Councils should be consolidated into one umbrella Bargaining Council x Legislation should incorporate a 4 weeks notice period after six months service x TES and employees should contribute to the industry pension fund x Definition of “workplace” for the temporary worker should be that of the client and not the TES provider/labour broker x Amendment of section 189 of the LRA - where employers retrench permanent employees but later hire same employees through TES providers to save costs should be prohibited x Amendments should include payment of severance amount where client terminates contact of the TES provider x Sectoral collective bargaining may provide atypical workers with a forum x Ensure that certain guiding principles regarding contractors are negotiated and included in the collective agreements signed by all parties x Reach collective agreement to phase out the use of TES over a period of time 0 [ 600 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Extend collective agreements to cover temporary employees but such should be limited to Bargaining Councils, not Agency Shop Agreement as that would infringe on the right of association x Support minimum wages for TES employees which are sector specific, but concerned about the Minister of Labour’s powers to determine wages which leads to over regulation x TES registration with the DoL should be a legal requirement x Extending the role of the DoL, for example, giving guidelines in the TES employment contract, enforce current legislation and encourage business to select compliant TES providers x Assess which parts of the ILO Convention 181 can be encompassed in the amendments to the LRA
3.1.7 Mr Victor Anthony
x Why should labour brokers take part only when a salary needs to be paid x Most of the time the Labour Relations Act is manipulated x Termination of contracts most of the time is without notice
Recommendations x Labour Broking should be regulated
3.1.8 Confederation of South African Workers Union (CONSAWU) 2010 March 24 Wednesday,
x Rejects all forms of atypical work including Expanded Public Work Programme x Workers are trapped into continuous poverty cycle x Some broker/client arrangements exclude the right to strike x Since the rise of temporary employment and decline of permanent employment, SA Human Index has declined from 0,702 in 1985 to 0,670 in 2006 x No person should be paid less than the basic R4 000 in SA
Recommendations x Legislation should define an employer x Employee definition should delete “excluding an independent contractor” ensa,2 ac 2010 March 24 Wednesday, x Definition of an employee should include “any person whose monthly income is R5 000, or less, a different amount as determined by the Minister from time to time” x Taken from other African countries, the Minister of Labour should legislate an across all sectors minimum wage/salary which should not be less than R4 000 per month x Non-complying employers should be fined a stipulated amount or sentenced to a minimum of two-year jail sentence
3.1.9 Landelahni Recruitment Group
x Supports closure of labour brokers who do not adhere to the requirements and do not comply with LRA or regulations 601 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Currently reviewing benefits to contract workers x Provide learnerships and internships to workers x Supports professional conduct of agencies to contribute in creating jobs x Supports that labour brokers that flout the law be struck off the roll and never practice again x If all brokers are banned there will be major job losses in Lindelanhi
Recommendations x Closure of Labour Brokers who do not adhere to regulations x Supports registration of TES and termination of contracts to those found to be manipulative and do not comply with the LRA x Labour Brokers should be professionals and contribute to creating jobs, not exploit people x Supports that Labour Brokers that flout be struck off the roll and never practice again x Labour Broking should not be banned.
3.1.10 AL JAMA-AH
x The Department should not allow TES contracts unless they are measured. x The sectoral determination for contract cleaners must be scrapped as it has stripped 300 000 workers of their job security, their dignity and service benefits x Employers and State entities are also guilty of worsening conditions within the labour market 0 [ 602 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Recommendations x Regulation of the TES industry should be limited to the expiry of the existing commercial contracts between labour brokers/TES and their clients which can exist for the next five years x The TES ban should exclude first time school leavers but subject to strict regulation if it is the first step to guaranteed employment for them on leaving school x Review procurement policies within government departments, especially the Department of Health which outsources cleaners x Contracts should not be awarded unless bidders pass the test of providing decent work
3.1.11 Women on Farm Project
x 46% of agricultural labour force is casual x Wage rates are far lower for casual workers compared to their permanent counterparts, even when performing same tasks x Most “cost-saving” activities include: non-wage benefits such as maternity leave, sick leave, rain-day pays, protective clothing etc. x Growing feminisation of work with men replaced by women. Women paid less x Workers are unable to join unions for fear of losing jobs
x Illegal deductions from wages 2010 March 24 Wednesday, x No access to training and development opportunities x Overt gender and racial discriminatory practices x Current legislation assumed that the labour force is unionised and falls within the bargaining council x Current framework is still biased towards the two-way employment relationship
Recommendations x Legislation should consider the growing new format of employment x Introduce legislation that specifically deals with labour brokers, including registration, skills development, etc. x Those using unregistered brokers should face stringent legal consequences x Implement effective monitoring and enforcement strategies together with farm workers’ organisations x Introduce agricultural bargaining council ensa,2 ac 2010 March 24 Wednesday, x There should be education programmes on labour rights x Hold commodity groups account for training and coordination of labour broker operations within their sectors
3.1.12 Confederation of Association in the Private Employment Sector (CAPES)
x Non-compliance and gaps contribute to abuse in the industry x Accepts that there are challenges in the industry but there should be a mechanism to deal with them x Rejects rise to any references like selling people, labour abuse and human trafficking x Proposes looking at the existing law and embarking on educating the stakeholders on their rights and obligations x There should be public private agency board 603 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Recommendations x Proposes looking at the existing laws and embarking on educating stakeholders on their rights and obligations x There should be a public and private agency board x There should be mechanisms in place to deal with the current problems between Labour Brokers and employees
3.1.13 FEDUSA
x Focus should be on the “end user”/client and not the broker x Look at the Netherlands model “ABU” which covers approximately 90 per cent TES workers or x The UK National Level Agreement between government, labour (TUC) and the CBI concluded in May x Believe labour broking should be regulated and not banned x After being legislated there should be monitoring and enforcement x FEDUSA supports the joint mode of holding the labour broker and employer accountable in cases of exploitation of workers
Recommendations x Regulation of the industry through the national legislative framework supplemented by collective agreements and the national framework agreement supplemented by sector or industry agreements x Beyond regulation there should be enforcement x Workplace issues should be monitored (hours of work, equal treatment, etc.) 0 [ 604 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, 3.1.14 Ms Nyameka Nama (Exploited worker recruited by a labour broker)
She was accused of stealing a client’s watch at the hotel where she works. A security guard had told her she would be called to a pornographic test (being stripped naked). The watch was not found on her. The following day a client reported that he found his watch. No apology was made to her after such humiliation. She felt she got such treatment because she is black and a woman.
She and her other colleagues work irregular hours and when she questions such a behaviour, she is told that she is employed by a labour broker and therefore the hotel does not have powers on her.
Recommendations x She appealed to Unions to come to her rescue.
3.1.15 COSATU-FAWU/NEHAWU/NUM/NUMSA/SACCAWU/SATAWU
x Acknowledges the Department of Labour’s discussion paper which proposes various additional regulations against labour brokers x Urgent need to correct the notion that labour brokers create jobs x Labour brokers are merely intermediaries to access jobs x Labour brokers destroy decent jobs through insecure contractual relations
x The contract is between the labour broker and the “client”, excluding the employee (who supplies labour) 2010 March 24 Wednesday, x “scab” labour undermines collective bargaining rights, e.g. right to strike x Labour broking is the reflection of the true employer refusing to comply with its obligations x Progressive deskilling of workers due to short-term and irregular nature of contracts associated with labour broking x Department of Labour (DoL)’s proposed regulations have not outlined how it intends to address current incapacity to enforce legislation x There’s been an increased usage of labour brokers in the Public Sector e.g. Health sector x Labour brokers have become the mechanism to deprive vulnerable employees of labour law protection x The public sector has significantly reduced the number of employees and increasingly involved the process of outsourcing x Increasing usage of employment agencies/labour brokers both in the public service as well as the State Owned Enterprises x Most nurses belong to agencies, not hospitals ensa,2 ac 2010 March 24 Wednesday, x Home-based care workers in communities are provided by the NGOs, who in turn pay them (labour broking) through payments from the Department of Health and Social Development x Labour broking results into:
- Low levels of remuneration, including benefits - Unionisation and security of employment - Absence of occupational health and safety protections and systems
x Definition of seasonal work is not clear, as some sectors employ workers for almost 12 months who then become permanent seasonal workers 605 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x No adequate housing and basic services x Labour brokers deprive workers direct access to the employer x Sole interest of labour brokers is to maximise profits, while depriving them of their rights and benefits x Social consequences of labour broking result in workers depending on government pension after retirement x Labour brokers provide cheap labour and entrench unsafe working conditions x Neither companies nor labour brokers take responsibility for workers injured/fatally wounded x They target the desperate, particularly from the rural areas and poor communities x Same-job- same-pay does not apply as labour brokers pay less compared to client companies x Workers under the labour broker do not receive focussed and co-ordinated training as clients do not take responsibility for them x In trying to minimise hardship and exploitation of workers within the engineering sector, parties agreed to regulate labour brokers x Instead of conditions improving within the sector, they’ve worsened since employers opt for labour brokers instead of employing permanent staff x Issues of employment equity and skills development are not implemented x Courier companies, maritime, cleaning industry, are all vulnerable x Workers are often not supplied with contract copies, hence the delusion of a permanent position x In instances where workers’ wages are increased, employers in turn, cut working hours for workers not to receive the benefit x Unionised workers are often moved to other client companies x If workers take cases to CCMA, they’re simply told that client companies do not need them x SATAWU has an agreement with SAA to ban labour brokers 0 [ 606 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Recommendations x Strongly proposes that labour brokers should be banned x There is a need for further hearings at local level and in all provinces by the Portfolio Committee
3.1.16 NACTU
x Based on Article 1 of the Declaration of Philadelphia, adopted by the ILO in 1944 x Workers under the labour broker usually do not enjoy such formal employment benefits as: pension, medical aid, housing subsidies, maternity, occupational diseases and injuries x Labour broking racially profiles workers x The system of labour broking undermines the Constitutional provisions such as the right to human dignity and equality x They also undermine international labour standards: labour brokers violated at least six fundamental conventions No. 87, 98, 29105, 100 and 111 x Given that the wages to national income ratios have decline considerably between the periods 1995-2000 and 2001-07, if labour brokers are not prohibited this will decline considerably x Labour brokers undermine social protection x Labour brokers engender discrimination at the workplace and intensify the exploitation of workers
Recommendations 2010 March 24 Wednesday, x Immediately prohibit labour broking x Amend legislation and restore the original standard employment relationship x Compel all employers to provide minimum benefits of employment x Capacitate the DoL’s inspectorate unit x Restrict TES services to those of recruitment, placement, and information dissemination only. In instances where they provide temporary employment services, it should be limited x Prohibit the public service, enterprises, entities, and major public investment projects form using TES x Bar members of legislatures, executive, and civil service from owning and operating TES through compelling them to disclose such activities x Fast track the Comprehensive Social Security and Retirement Reform and the National Health Insurance Scheme x Instruct DoL to engage at NEDLAC on its proposed amendments to the labour legislation ensa,2 ac 2010 March 24 Wednesday, 3.1.17 Metal and Electricity Workers Union of South Africa (MEWUSA)
x The discussion is long overdue x Labour brokers contribute nothing to the working class x Where labour brokers are involved, conditions of workers are at their worst
Recommendations x Want Labour Brokers to be liquidated x Legislation should be done to prevent further formation of such Labour Broking 607 ]
NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, 3.1.18 Business Unity South Africa (BUSA)
x Labour broking should be considered in the context of employment as a whole x It is a pivotal facilitator of employment x It provides speedy access to temporary and permanent employment, skills development and reduces administrative burden on employers Also recognising other forms of labour broking that have given rise to abuse and consequently eroding workers’ rights and decent work.Business does not support such abusive practices x Key focus should be on improving conditions towards decent work than eliminating labour broking completely x Example of CAPES: it places 500 000 temporary assignees daily x TES facilitate more than 20 000 learnerships and contribute more than R400 000 million in skills development levies x Facilitated more than 5% of all learnerships in the NSDS 1 x 40% of temporary assignees fall under the jurisdiction of Bargaining Councils x There’s also a large scale use of labour broking in the public sector x Labour legislation already has provision for TES regulation, inter alia: Section 198 of the LRA Section 57 of the EEA Section 24 of the SDA and Regulations Section 82 of the BCEA and Section 1 of the OHSA x Also regulated by Sectoral Determinations and Bargaining Council Agreements 0 [ 608 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x There has been no Regulatory Impact Assessment conducted by the DoL before tabling the Discussion Document at NEDLAC
Recommendations x Positive elements of labour broking be maintained x There has been no reasonable enforcement of the existing statute by the DoL x Bargaining Councils should fully address enforcement issues x Opposed to new legislation x Existing statute be considered as primary remedy x Co-regulatory model with a Private Employment Agency Board which registers, investigates and de-registers TES x Opposes DoL proposals which curtail the TES industry
3.1.19 Young Communist League of SA (YCL)
x Labour brokers undermine workers’ rights, including those contained in the Bill of Rights x Do not guarantee Job Security x Workers kept on temporary work for long periods, especially the Retail Sector x Do not contribute to skills development and worker progression x The provision in the Constitution which states that everyone has the right to choose their employer, undermines/or is ignorant of the socio-economic conditions that workers find themselves, and thus, makes them 2010 March 24 Wednesday, vulnerable
Recommendations x It would be costly to regulate and penalise labour brokers, hence banning is a more viable option (since this will be a process), meanwhile: x After a particular period, employers should take over the labour broker contract, with the worker directly falling under the company x Enforce the stipulation that both the employer and the labour broker are liable (joint-liability) x Ban all forms of labour broking within vulnerable sectors (where minimum wages have been set) including mining, agriculture, private security, mining and domestic ensa,2 ac 2010 March 24 Wednesday, x Immediate regulations be introduced to ban labour broker usage in all local government municipalities, public education, health and other institutions including courts, sports facilities, etc. x Heavy punishment for those contravening regulations x Contribution by labour brokers to the Skills Development Levy and clear skills development plans
3.1.20 ANC Youth League
x Labour brokers cause division amongst permanent and temporary workers x Workers are placed anywhere that the employer want to place them x Labour brokers should be banned in South Africa because they abuse and exploit workers 609 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x There should be legislation to assist in transferring workers in the temporary system to the permanent system and there should be a process to oversee compliance in this regard x Jobs found by young people should be permanent and should provide security and benefits x Labour brokers had neglected to protect workers at the workplace x When workers were injured on duty and had to stay away from work, they are not paid x ANC Youth League were of the view that labour brokers were exploitative, took an unfair portion of workers’ salaries and did not have fair dismissal practices
Recommendations x Labour brokers should be banned in SA x A structured process should be established in order to transfer temporary workers into permanent employment 3.1.21 General industries Workers Union of South Africa
x Terms of reference of the hearing are restrictive thus reducing the challenge of labour broking to one mere regulation x Labour broker employers are not owners of the means of production. What they own are employees they contract through a fictitious employment relationship. Because of “this ownership of the employees” the labour broker employers can sell the employee to another at a fee x Labour broking has caused the present labour market to take on the abominable features of the previous colonial and Apartheid labour markets 1 [ 610 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Employees of labour brokers do not enjoy the same conditions of employment as permanent employees because of being third party employees. They do the same work; generate surplus values for the same client employer as permanent workers x Labour broking employees suffer from constant violations of the provision of the labour laws. Though they work for the same labour broker and client for several years they have no job security and are employed on the basis of no work no pay. Their contract with the broker is terminated as soon as the commercial contract between labour broker and its client ends x Client companies would threaten to cancel the contract of the broker if the employees should join a trade union. The threat can be difficult to prove in a court of law x It is difficult to get unions recognised by the brokers x Most labour brokers describe themselves as BEE companies but they contribute little to socio-economic development and the creation of decent work x Even the so-called big labour brokers, like Capacity Outsourcing, a subsidiary of Adcorp Holding are among the worst exploiters and oppressors of workers x Banning labour broking will not lead to thousands of job losses x Labour broking companies are not job creators and therefore contribute very little to South Africa’s development. They undermine attempts to create decent work
Recommendations x Labour broking should be banned 2010 March 24 Wednesday,
3.1.22 Man on the side of the road
x Organise people who look for jobs on the side of the roads x Service is for free and people are placed as casuals x Believe existing labour rules were sufficient
Recommendations x Current legislation is appropriate x Scope to define “temporary employment” x Industry must be effectively regulated x The DoL should effectively monitor the labour broking industry ensa,2 ac 2010 March 24 Wednesday, 4. Public hearings in the Free State, North West, Gauteng and KwaZulu-Natal Provinces, 05-08 October 2009
4.1 Introduction
The hearings held in Parliament on the 25 and 26 August 2009 were mainly attended by labour brokers and Labour Union representatives of employees affected by labour broking. There were few representatives from the communities. It is for this reason that the Portfolio Committee on Labour took a resolution to extend the hearings to provinces where labour broking practices are deemed to be rife in order for the Committee to get first hand information from the workers/communities about the extent and effects of the labour broking practices. ]611 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, 4.2 Delegation
Ms L E Yengeni (ANC) – Leader of the Delegation Mr E Nyekemba (ANC) Ms L Makhubela-Mashele (ANC) Ms F E Khumalo (ANC) Ms A M Rantsolase (ANC) Ms R D Tsotetsi (ANC) Mr E Mtshali (ANC) Mr A Louw (DA) Mr I Ollis (DA) Mr W M Madisha (COPE) Mr V B Ndlovu (IFP)
4.3 Presentations by different stakeholders and individuals
The Committee heard oral input from organisations and individuals. The table below reflects organisations, workers and individuals who called for the total banning of labour broking, and those who called for regulation of labour broking. 1 [ 612 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, 4.3.1 Day 1: Monday, 05 October 2009
Public Hearings in Welkom: Tabong Community Hall, Free State Province
Present: Organized business, labour and individual members of the public.
Organisations and individuals who called for the Organisations and individuals who called banning of labour broking for the regulation of labour broking
Anglo Company worker - working under AKTV Collen Ackland (Chairperson of Personnel labour broker: Services)
x Workers working under Temporary x Labour broking need to be Employment Services (TES) do not have regulated benefits at all x Temporary Employment Services x They are fired without proper disciplinary (TES) assist in employment processes x If banned, people will lose their x Salaries should be paid straight to workers jobs and not to the intermediary 2010 March 24 Wednesday, x Co-regulate with government, x Recommend that TES should be abolished, since the Department of Labour employers should employ people directly (DoL) has no capacity to regulate the industry ensa,2 ac 2010 March 24 Wednesday,
NUM: Ntandazo Siqwala TES employer in Bloemfontein
x Regulation will fail fair labour practices x In current labour legislation there are structures in place already x Cannot allow commoditisation of human beings x Need enforcement of current legislation x Conditions of employment: no promotions, benefits, no skills development and x Employers currently abusing 613 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, employment equity workers
x Sometimes there are 100% salary x Skills levies are not used, not deductions because TES do not train but employers (incomplete sentence) x Commission for Conciliation, Mediation and Arbitration (CCMA) processes do not x Collective bargaining agreement assist should be enforced to all TES
x Should be permanently banned in South x CCMA make a stand on Africa in order to promote decent work (incomplete sentence) (commissioner do not want to deal with Removal Clause)
x Effective Human Resource (HR) to client should be rendered by the client companies
x Cleaning companies should be distinguished from labour brokers as they should take full responsibility of their companies 1 [ 614 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Co-regulation between the TES and the DoL
x Have a board that will regulate the industry
YCL in the Frees State: Buyisiwe Sikhona
x Labour brokers undermine the rights of workers x Matriculated with electrical x Labour brokers take away a share in the engineering worker’s wage x If people are looking for jobs in x Monitoring will waste a lot of money the public service they need connections x No skills development x Resort to labour brokers since they x Department of Labour should take over the do not need experience and responsibility of placing people connections ensa,2 ac 2010 March 24 Wednesday, Mhlupheki Hadebe (DENOSA) Transman- Petros
x Call for total banning of labour broking x During school holidays, company employs kids x Labour broking camouflages shortages of nurses within the sector x Employ people to stand-in for workers on maternity leave x It violates the legislation like the Basic Conditions of Employment Act (BCEA) e.g x 10 000 people given jobs on a working hours are long daily basis
x Service delivery is being compromised due ensa,2 ac 2010 March 24 Wednesday, to tired nurses
x Nurses take leave or sick leave from the permanent employer so as to moonlight somewhere else
Babazile Bonai (Bongani hospital) 615 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Cleaners, security workers, catering staff working under the TES working for R1 800 which amounts to R1 400 after deductions (were not paid in September)
x Requesting government to create decent jobs (permanent jobs)
x Stop delaying the legislation process
Bongani Hospital: NEHAWU (nurse)
x Worked for the provincial hospital and were not allowed to go on strike
x Working for Bongodi Cleaning services since 2008 they have not been paid
x MEC promised to assist but nothing has been done
x Mr Ace Magashule promised to assist but 1 [ 616 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, nothing has been done
Message Tsatsa (from Youth at Work)
x Middle man – take wage share from the workers
x Government should create permanent work for all
Worker: (Bambanani Company)
x Works for R723 per month
x Can’t feed the family
x Management of Bambanani do not listen to workers concerns
x The company Ignore occupational injuries
x Others work for R100 per month 2010 March 24 Wednesday,
x Ban labour broking companies, and mines should employ workers directly and permanently
Mrs Botsane
x On behalf of her child who works for (incomplete sentence) (attorney firm)
x Since people are not paid through lawyers, ensa,2 ac 2010 March 24 Wednesday, their salaries have been reduced
x No benefits, salary fluctuates every month
x Government should assist on how to deal with the issue
x Labour broking should be abolished
Mandlenkosi Skhomo (Bambanani Mine) 617 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Does same jobs as the permanent staff under the mine
x Those working for TES do not have benefits such as accommodation whereas they are poorly paid
x Government should ban labour hire
Juwel Jali
x Mine paid him R7000 but after deductions from the TES would get R1 500
x How could government let TES dominate the private sector
x Compares to apartheid
x TES should be banned
Moris Mokwedi (NEHAWU) 1 [ 618 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Ban labour broking like it has been done in China
x It is the exploitation of labour
x Government should not regulate labour broking
Sonwabo Stokwe (MassMart)
x Labour broking is exploitation and victimization
x Female workers dismissed due to grievance about sexual harassment
x In Bloemfontein Cash and Carry staff all employed through the TES
x Mass Cash retrenched all full-time
employees and replaced them with TES 2010 March 24 Wednesday, employees
Post Office Worker:
x Six years working under the TES
x Delivers letters without protection such as rain-coats
x Permanently employed workers receive protective gear ensa,2 ac 2010 March 24 Wednesday, x Salaries fluctuate each and every month
x Terms of contracts not clearly stated
Modise Moekedi (Worker from Sky-High )
x Workers get paid R60 per 9 hours (R1 320)
x When injured at work, removed from others and no treatment given 619 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Government should take over from the TES
x Labour broking should be banned
Nomsa Matshaba (Employer from Sondelani Hospital under Karisma TES)
x Random inspection without proper training, people are being fired without proper procedures
x Replaced immediately with labour broking employees
x Had accident – but not permitted to take sick leave
x Ban TES
x 2 [ 620 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Mkhulu Stofile (SACP in OFS)
x Workers are also community workers, have social responsibilities
x Workers cannot uplift themselves out of poverty given the conditions they work under
x People view TES as slavery
x Ban TES
Sandile Mzantsi (Bambanani - formally known as Steel No 4)
x Company does not have the hospital to attend to the injured workers
x If injured taken to the TES office and
ordered to go back to work 2010 March 24 Wednesday,
x Unpaid sick leave
x R500 per month or R400
x Not paid for overtime or night duty
x Ban TES
Isaac Mostwewu
x Works for Impro-Chemical ensa,2 ac 2010 March 24 Wednesday, x People working for TES had no benefits
x Ban TES since they are the only party benefiting from the system
x Union in the industry (CEPAWU) cannot represent TES employees
Mpule Sikicane (Glofields-Ameture winders) 621 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS,
x Mewusa requested company to implement skills development training for staff members but this was not done
x Workers work short-term but the company is still bringing in labour brokers instead of using the money to employ permanent staff
x Labour broking should be banned
Tseko Mokupi
x Works for Quest Flexi-Solution
x Worked for 17 years for the company as temporary worker
x Only african workers are employed by TES, Why?
x Ban labour broking because it exploits black 2 [ 622 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, people
Tsepo Moloi
x Working for Prestige Cleaning Services
x How will Parliament ban TES?
x No benefits or sick leave
x Three days of family responsibility leave is not enough
x Workers getting paid R50 for Saturday and Sundays
x Reducing working hours when they request salary raise
x Work for 7 days with no leave 2010 March 24 Wednesday,
x Parliament to follow up on working conditions
x No medical aid benefits
x Sick workers are replaced
Sophie – contract worker at Bongani Hospital
x Currently on pension without benefits
x Were employed under Bongani with ensa,2 ac 2010 March 24 Wednesday, promise of government employment after three months
x Worked with seriously dangerous chemicals
x Ban labour brokers
Gcinikhaya Silwanyana 623 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Workers are exposed to cancer and TB under the mines
x Temporary Employment Services (TES) do not belong to Rand insurance therefore TES employees do not qualify for medical benefits
x Ban labour broking or TES
Worker at Charisma Solutions
x Like migrant labour, families are destroyed since workers do not have benefits such as leave (no family time)
x Temporary Employment Services (TES) goes against decent work
x People under TES can’t even join trade unions 2 [ 624 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x TES should be banned
Zoliwe
x Works for Ellerines furniture store
x Companies retrench workers, and bring in TES workers
x TES are also service providers to the Sector Education Training Authorities (SETAs)
x People become part-time worker for the rest of their lives under TES
x No maternity leave. People took 10 days maternity leave, if more than that they do not get paid or lose their jobs
x Labour broking should be banned ensa,2 ac 2010 March 24 Wednesday, SAMWU (Nombulelo)
x Labour broking within local government is rampant
x Services (e.g. payment for electricity and water) which are core services rendered by the municipality are being outsourced
x Municipalities should stop hiring people who work for politicians on temporary basis
x Entities within local government e.g. water ensa,2 ac 2010 March 24 Wednesday, boards employed people as permanently casual workers
x All entities should do away with casual workers and all workers should be employed permanently by the municipalities
x Trucks that work for the municipality are outsourced to the labour broker 625 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Municipality should stop outsourcing truck services to labour brokers
Security guard – Fidelity
x Worked for Fidelity, as a security guard at ATMs and hospitals, but not provided with any equipment
x Security officers work as police officers but not recognized for their work
x Sexual harassment is rife in the company
x Government should stop outsourcing services to the labour brokers
Health worker: Bongani Hospital
x The Hospital is dirty
x Through labour brokers, patients are given 2 [ 626 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, rotten food because of uncaring labour brokers
x Ban labour brokers
John Makgutsa
x (Pick ‘n Pay) – Worker under Padima Cleaning Services
x Working 7 days a week
x Salaries fluctuate
x Uniforms payments are being deducted from employees without explanation
x Work with dangerous chemicals and not 2010 March 24 Wednesday, protected
x Overtime not paid
x Ban TES
Lehlonolo Hadebe
x Ban TES
Worker – Works for cleaning company at Shoprite
x The salaries of workers who fall under ensa,2 ac 2010 March 24 Wednesday, brokers are cut because some of it goes to labour brokers
x Work from 7 till 2pm (working hours have been cut down)
x Not allowed to take leave
x Labour broking must be banned
SATAWU 627 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS,
x Fixed term contracts ( three-months contract)
x Not allowed to embark on strike on the client premises
x Sectoral determination – TES reduce hours of work to avoid sectoral determinations
x Managers within government department have shares within labour broking companies (benefit within the industry)
x 3000 SAA workers were with the TES and SATAWU has negotiated with the employer and those workers have since been permanently employed by SAA
x Employers must employ people directly and permanently 2 [ 628 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, NEHAWU –
x Ban labour brokers
x No relationship with the employer
x DoL should take over TES duties
x TES employers claim not to have money to address issues, whereas they got paid by the client- companies
Busisiwe Skhosana (Worker for cleaning company under Checkers)
x Company deducts provident fund – NBC
x Colleagues died without getting money
x Instead of salary increase, they cut working hours ensa,2 ac 2010 March 24 Wednesday,
x Ban TES
Sam Mashinini (Cosatu Provincial Secretary – KZN)
x TES must be banned
x TES do not own the means of production
x Effective HR is the strategy used by the TES companies
x No relationship between the TES and the ensa,2 ac 2010 March 24 Wednesday, workers
x Nothing stops TES from joining the Bargaining Council
4.3.2 Day 2: Tuesday, 06 October 2009
Public Hearings at Shaft No1 Vaal Reefs Mine, North West Province 629 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Present: Organized business, labour and individual members of the public
Organisations and individuals who called for the Organisations and individuals who called for the banning of labour broking regulation of labour broking
Thandikhaya – Mine worker under labour broker The President of Association for Nursing Agencies in SA x Labour brokers mainly dominant in mining industry x Health care is in turmoil x No benefit for people working under labour x There are huge vacancies in the health care brokers industry x Labour broking must be banned because it x Nurses who are already in full-time exploits workers employment are also under labour brokers Patrick Alilani – retailing industry Micheal
x In favour of abolishing TES x Has a BTech in Chemical Engineering x Labour brokers were the ones benefiting x Companies require experience, including from the process, not the employees government x Government should come up with legislative x If you do away with TES, what will happen to provisions to deal with the matter people who have no alternative x Better regulate than ban Khaya – Kandintseng 3 [ 630 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Labour broking equal to slavery x TES equal to capitalists (profit-driven) Mine worker
x TES completely wrong x Labour brokers not complying with the law x Mining industries were corrupted due to labour broking
Jacob Ngwenyama
x Worked for TES for two years x Whilst working for the TES still under financial constrain x UIF and provident fund not paid x Some never received their salaries at all and some received after three to four months x TES should be banned
Siyabulela Dinginto – Anglo Gold Ashanti
x NUM- struggles to organise workers under 2010 March 24 Wednesday, the TES x When finalising the contract on the relationship between the Union and the labour broker, the labour broker disappeared x TES should be banned Mqondeni Madubela
x Poverty has risen since TES started x Ban TES
Lebokgeng Mathosi
x Jobs are created by client companies but not ensa,2 ac 2010 March 24 Wednesday, TES x Labour brokers promote slavery x Rise in poverty and inequality through TES x Contribute to trade union collapse since the environment does not promote workers’ organizing x Labour broking should be banned, not regulated Mine worker 631 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Labour broking contradicts the decent work campaign x It should be banned Zongezile Goniwe
x Workers are victims of loan sharks in the mines x Majority of mine workers are heavily indebted to cash loans x Having children in universities and can’t maintain x Ban labour brokers and let companies employ employees directly x People employed under TES - their salaries are not the same as permanent employees x This contributes and results in family disunity Mine worker
x Was under the TES in previous years x Majority of TES are white people x White people are lifting each other whilst oppressing workers x Ban labour brokers 3 [ 632 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Mine worker
x Client companies put pressure on TES to fire injured workers through threats of contract termination x Ban TES x Let them move out for clear vacancies identification x Contract workers are blamed for accidents in mines (system divisive for the working class since permanent workers are treated better than contact workers) Provincial Deputy Chairperson (SAMWU)
x Number of graduates employed by TES paid small amounts x Workers do not benefit from the process - only the middle man benefits x Some municipalities also use labour brokers
x Farm workers are also victims of 2010 March 24 Wednesday, exploitation by labour brokers (farmers kill farm workers) x Municipalities should stop outsourcing services x Government should stop privatisation, it must render services to the people SAWU (provincial secretary)
x All truck industry companies are using labour brokers x People working for these companies don’t receive any benefit x Labour broking should be banned ensa,2 ac 2010 March 24 Wednesday, Mthuthuzeli (Mine worker)
x Workers under labour brokers are being paid nothing but peanuts x This leads to source of hunger and distrust between workers x Workers sometimes are forced to sleep at the mines since they have no money for rent and food Winnie Mashilo (Individual) 633 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x White people are the ones who are bringing labour brokers x Workers working under labour brokers are not allowed to join unions x Ban labour brokers Timoti Msuku (Individual)
x The system is very cruel x Parliamentarians own TES – first clean Parliament x Minister should stop talk of “good vs. bad labour brokers” x Workers will halt SA to a standstill like in 1976 when fighting against Afrikaans x This TES or Labour broking system must immediately come to an end Emma Mitse (Individual)
x Labour broking should be banned as it exploits workers Individual
x Government should first stop outsourcing 3 [ 634 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, services x This is where labour brokers kick in Nozi
x Labour broking should be stopped because it is a strategy to exploit workers Mathews
x Labour broking must be banned
Mine worker
x Labour broking must be banned and Government must come up with another strategy of developing jobs Mine worker
x Ban labour broking Mine worker ensa,2 ac 2010 March 24 Wednesday, x Labour broking must be banned starting from Parliament Phila Hlongwane (Rustenburg)
x Ban labour brokers but make sure that people who work for TES are absorbed by the mining industries permanently Solly Phetoe (Provincial Secretary- COSATU)
x Commercial contracts in farming, security and mining are against labour legislation x When dismissed by the TES, those workers cannot be re-employed by client employers ensa,2 ac 2010 March 24 Wednesday, in the sector x Labour broking must be banned
4.3.3 Day 3: Thursday, 07 October
Public Hearings in Germiston – Council Chambers, Ekurhuleni Municipal, Gauteng Province
Present: Organized business, labour and individual members of the public.
Organisations and individuals who called Organisations and individuals who called for the regulation 635 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, for the banning of labour broking of labour broking
Dumisani Dakile - COSATU Provincial Lance Duree (teacher) Secretary (Gauteng) x Witness the hardship that workers go through In relation to the Freedom Charter everyday – there shall be work and security, x School children that cannot afford fees freedom of association and the labour x The issue is not about race but about labour legislation legislation x Whilst there is progress - however x People cannot be employed because it is difficult to TES have introduced setbacks to hire workers without the experience those gains x Labour brokers can do their work within the correct x Denying people right to progress, legislative frame work organize and give section 21 – dismissed without proper steps being taken x Racism still rife in the workplace x TES a direct attack on the Freedom Charter and the spirit of the RDP x Decent work – labour is not commodity – a source of pride and dignity as enshrined in the Constitution x TES do not own any means of 3 [ 636 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, production x Violate workers’ rights and labour laws x Undermine principles of equal work and equal wage x Workers’ share in the economy has decreased significantly x BEE deals have benefited the few x Labour brokers own shares as far as GIDANE – lotto x Local government is also not immune in the utilization of TES x Senior State managers in collaboration with TES are also beneficiaries x Post Office – 90 per cent of this work force are constituted
by the TES 2010 March 24 Wednesday, x TES use women since they are the most vulnerable section in society x TES are white male dominated x Disappointed that the DoL is proposing the regulation of TES x DoL has failed to enforce safety in the workplace – how will they regulate TES x Parliament must listen to the people ensa,2 ac 2010 March 24 Wednesday, x Decent work agenda should be realized in SA x Parliament should go and visit TES workplaces Heinrich Diesel Association of Nursing TES
x Ban – the system is abusive x There is crisis in the nursing industry x Number of nurses available is not enough x 40 per cent rate of vacancies x Purpose of TES in the health industry is to facilitate 637 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, the movement of nurses within various hospitals x TES also in charge of statutory requirement x Brokers only charge the maximum of 12 and half per cent x Voluntarily enter into TES contracts because they paid less Mandla Khumalo Unemployed People’s Party NACTU (B&R Products) x Unemployed people also have an interest in the x Mandate from both permanent and matter temporary employees x Debate has created undeniable attention x TES employees are the majority in x Relationship with CAPES and APSOL his company x Need to realize that there are legal operators as well x TES employees have no benefits, as illegal operators only UIF x Started the vulnerable workers union x TES earn far less than the agreed x Do no support a general ban on TES but regulation bargain council wages x A general ban of TES is in contradiction to the x Over five years working for TES in need to create employment the same company - proof that there is need for the employees x Two ladies employed by the company - after two years they are back under the labour broker x TES does not comply with the 3 [ 638 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, bargaining council agreements x TES must be abolished
Individual North-West Province SA organization
x Government should ban labour x Registered with the DoL and have 600 workers i.e. broking because it exploits workers there are almost 120 000 workers under the TES x Aware that some companies do not comply with the regulations x Have to abide by the basic minimum requirement x DoL has no capacity to regulate and enforce the current labour legislation x Employees are moved from one project to the other as soon as short-term projects are completed x Recommend that regulate unlawful TES x Those abusing TES should be banned x Those that comply should be regulated Nonhlanhla Shabangu – SHER Temporary Employment Services Company (TES):
x Sexual harassment education x Law should establish the TES bargaining council
programme – workers are being 2010 March 24 Wednesday, sexually harassed x Big business hides the TES x Women especially in the domestic sector are requested to perform sexual deeds in homes x Men are also asked to perform sexual acts, especially in the security industry x Ban TES Individual TES owner
x Ban TES x There are TES who comply with the legislation x Supports submissions by COSATU x The current legislation is not properly enforced ensa,2 ac 2010 March 24 Wednesday, x South Africa must follow the x DoL has no capacity to enforce regulations Namibian example x Recommends that DoL should be empowered to x Labour broking promotes slavery and enforce regulations tramples on workers rights x Keep TES and just enforce the current legislation x People are getting payslips with no details about the company and address x Employers must employ directly and remove the middle person NALEDI 639 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Misconception that TES creates employment x According to the law- the TES creates employment whereas that is not true x TES should be abolished
Worker under the TES company
x TES using the courts to fight workers x Client companies deny workers access to the workplace during strike action as if these workers “are not employed by the company” x 600 people were dismissed whilst on strike x Employees monitored through cameras even in private rooms when workers are on strike x Some workers under labour brokers worked 13 hours a day x Labour broking is a source of poverty x Must be banned 4 [ 640 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Express Pay-Roll system (night shift allowance is 50c and works 13 hours a day) x Female workers are not allowed to take maternity leave x DoL officials are being bribed
x Parliament should visit Express Pay- Roll Chillie (Pan-African Workers’ Forum)
x TES violates the Bill of Rights of the indigenous people in SA x Farm workers work under hazardous conditions x Health and Occupational Safety legislation and the Skills Development Act are all undermined by the TES x Encouraging crime and Xenophobia
in the workplace 2010 March 24 Wednesday, x Recommends that TES be banned Individual
x Injured workers dismissed x No benefits x TES be abolished
Siphokazi Ngcali (works for Kelly)
x Labour broking must be banned x Permanent workers get allowances such as shift allowances, transport allowance ensa,2 ac 2010 March 24 Wednesday, x TES workers do not get any of these allowances SATAWU
x No need for the third party in the work relationship x Ban labour broking Sabelo Dlamini - from the IFP
x Employers working under labour 641 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, brokers have no transport to work and received no benefits x Labour broking must be banned Individual
x 90 per cent of TES are owned by white people x Some Parliamentarians are part of the problem x TES Should be banned
Lungile Nkosi
x Government promised decent work for all x No decent work under labour brokers x Labour broking should be banned Individual
x Outlaw section 198 of the LRA x Ban labour broking 4 [ 642 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Post office worker
x Unable to afford anything x No money to travel to work x Ban TES Worker for Marula
x Workers working under labour brokers are being abused by the employers x Workers forced to testify against fellow workers that are permanent and if they refuse they get fired x Received R1 allowance for night shift x Should be banned Worker for Marula
x Maternity leave not recognized x No skills development
x Recommend that labour broking be 2010 March 24 Wednesday, banned Individual
x The disabled people cannot manage working conditions under the TES x Ban labour broking Post Office worker
x Been working for 5 years, never met the employer nor the labour broker manager x 13c increase in the Post Office last year ensa,2 ac 2010 March 24 Wednesday, x The system should be abolished Worker working under labour brokers
x Workers under labour broking in the company earned R300, whereas other fellow workers in the same company earned R5 000 x Ban TES
RSC Mining 643 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Since 2007 the issue of TES was a burning issue and it is still so in 2009, when is it going to end x Ban TES
Alex Mashilo (YCL)
x Labour broking should be banned Ivin Jim (General Secretary - NUMSA) x Inequalities in SA have widened x Rate of exploitation is rife in SA x There are jobs currently occupied by the TES x People are crying and dying of hunger because of labour broking x Labour broking must be banned
After the hearings the Committee undertook a site visit to Primrose Gold Mine Camp. Workers in the mine are under labour brokers and the situation was disgusting (the camp was very dirty, windows were broken, and taps were broken). 4 [ 644 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, 4.3.4 Day 4: Thursday, 08 October 2009
Public Hearings in Pietermaritzburg – Winston Churchill Theatre – KZN Province
Present: Organized business, labour and individual members of the public.
Organisations and individuals who called for Organisations and individuals who called for the the banning of labour broking regulation of labour broking
Manqoba Ngubo Telaman Staffing
x Employed for more than two years under x TES is a source to find out which jobs are labour brokers available in the market x Labour brokers take a huge chunk of x Train people straight out of school, which the money from their salaries majority of companies would normally not x No skills development programmes consider x People who own agencies never come x Legislation needs to be enforced in this regard back to workers to address their concerns x Ban labour broking system and establish
a much more humane system 2010 March 24 Wednesday, Cabanga Hadebe Wilson Cele
x Employees under labour brokers are x From Unemployment Labour Forum being fired without notices x Some TES assist people x Ban labour broking x Acknowledges that some TES are abusive, therefore should be banned x However those TES who ascribe to the labour legislation should be regulated and permitted to operate
Bonga Ngwane (NUMSA) Bridget Jones
x Decent work x Supports regulation ensa,2 ac 2010 March 24 Wednesday, x TES do not own the means of production x Invest millions of rands into training x Secondary employer should be banned x SARS will also lose a lot of money in tax x Ban TES collection if labour brokers are going to be x Constitution protects the rights of the banned employees YCL in KZN Jack Simons
x Regulation of TES is an antithesis in x Misconception about the returns that TES make itself through their businesses x TES find it difficult to comply to the x TES charge administration fees and not through 645 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, legislation since they are also employees the hourly rates of the employees to the client companies x Recommends that the TES have a place in the x State spent more money on TES than on South African market the employees x Regulated since it is a world-wide phenomenon x TES are a new form of slavery x TES oblivious of the enslavement element in the system x MTEF talks about decent work x TES should be banned x State should take a major role in the developmental state Bheki Buthelezi (Black Consciousness) Escors (Richards Bay)
x Black people are most affected in the x Clients are small and medium companies who system of TES need short-term labour x Section 198 of the LRA specifically x Social benefits that come from the R29 billion identifies both the TES and client industry company x Incompetent DoL officials who do not x But both run away form their understand legislative requirement responsibilities x There is lack of policing in the system x Ban TES x Government should look after the workers’ x Boost cooperatives benefits x There should be one legal body that all TES should belong to 4 [ 646 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x DoL should be capaticipated so that it can be able to monitor the system x Regulate and enforce legislation Mr Velaphi Mabatha Terrence Dlamini (Ekuseni Consulting)
x Too little payment and not enough to x TES has been in the system for more than 20 afford anything years x The system should be banned x Regulate TES x Companies should employ workers x Transform the industry directly x The majority of the small and medium x No benefits – such as medical aid companies rely on TES for labour supply x TES workers will later be the State x Some employed more than 20 000 people burden Individual Andrew (PMB Chamber of Business)
x Ban labour brokers x Supports the idea of decent work x They sell workers to companies x Accepts that some sectors need seasonal x Municipality workers/managers benefit workers due to fluctuation in product demand from TES as one employees’ salary is e.g. agriculture worth 4 TES employees x 500 000 people will be unemployed if TES is
banned 2010 March 24 Wednesday, x Proposes regulation of the system, not banning x Labour broking and decent work are achievable
Individual Paul
x Worked 8 years under the TES x Labour broking should not be banned, instead x Fired without reasons should be regulated x Salary increments of 50c per year x TES should work under prescribed conditions x TES should be banned x If banned, people will lose jobs x Half a loaf better than nothing at all x Government has no capacity to employ due to corruption and nepotism x ensa,2 ac 2010 March 24 Wednesday, Bhekani Ngcobo (NUM) Individual
x TES should be banned x Element of tribalism blocks her from finding x There is no balance work x No Constitutional right at work x Nepotism and corruption within big x TES turns employees into companies promote sexual abuse commodities x Labour brokers assist in finding jobs, must x If workers go to Commission for be regulated not banned Conciliation, Mediation and Arbitration (CCMA) they are being 647 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, questioned about “who is the employer” x Disputes are dismissed at CCMA due to confusion about liability and the definition of an employer x Ban labour brokers Individual Individual
x People working for TES are not x Assisted to find a job by the TES workers since they take nothing x TES should not be banned home x No contact between the workers and the employer x Ban TES Smangele Khanyile Individual
x Ban TES x Have 300 apprentices with the company x TES should not use the 500 000 job x 1000 learners in learnerships targets as a justification for survival x In Namibia - 3000 workers were absorbed into permanent position out of a larger number x Eradicate exploitation of employees 4 [ 648 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Sandile Ngcobo Quest Staffing
x Been under the TES employment x Regulate TES x Target young graduates who have no x Quest staff get all the benefits experience and use their desperate x Take graduates and matriculants, train and place situation to their advantage them in jobs x Should not give impression that they x 80% of staff placed get permanent placement create jobs and that they are not making any profits x It brings back racisms - the Indian and White race are not affected as much as the Africans x The tax that the TES pay is from the employees that they employ x Ban TES x Appreciate the democratic processes of Parliament but urge the ANC to ban TES Sifiso Ngema
x It is a shameful experience
x TES do not create jobs 2010 March 24 Wednesday, x Contradicts the decent work campaign x Should be banned Simphiwe Mncwabe
x TES do not pay maternity leave x Don’t care about Issues of HIV/AIDS x Should be banned
Nokuthula Khanyezi
x Working for welding company x From 1988 worked for the same company and was retrenched ensa,2 ac 2010 March 24 Wednesday, x Same company returned to PMB and employed under the TES x Foreigners are paid more than SA citizens x Suggesting that something should be done to do away with the TES system Nhlanhla Msomi
x Works for the Working on Fire under the Department of Water Affairs and 649 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Forestry (DWAF) x Majority race is white x Paid R60 a day- with promise of a raise after 6 months x UIF not paid, no medical aid x R1, 80 increment x Should be banned x Not paid overtime x Trade unions not permitted Vukani Mthethwa
x Ban labour broking x TES do not train employees x Families get poorer instead Nonhlanhla Msomi
x Cannot regulate human suffering x Africans are mostly oppressed x Managers get kickbacks from TES contracts Fana Dlamini (NUMSA) chairperson in PMB x Supports banning of TES x People injured at work still get paid half the permanent employees salary 5 [ 650 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Uneven benefits x Do away with TES, employees be absorbed by the client company
Individual
x Employees cannot even afford to own houses with the salaries they get from the TES x Municipalities perpetuate the use and abuse of TES x Ban the TES Individual
x Client companies refer employees with complaints to the TES they have never met before x Ban TES
Zibuyele Mchunu (works for Willowton Oil) ensa,2 ac 2010 March 24 Wednesday, x Recommending that labour broking be banned Phumlani (SADTU)
x Do not support TES x There should be an employer-employee relationship x Employer should own the means of production x It is a criminal offence and should be banned ensa,2 ac 2010 March 24 Wednesday, Sobongile Nhlapho (COSATU)
x TES reversing the gains of democracy x TES should be banned x Anti-human rights Zet Luzipho Secretary –COSATU Provincial Secretay (KZN)
x Wrong to suggest that people are not informed about the TES industry 651 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, x Define broker: cushions the employers from the burdens of bargaining council x Abolish TES x World day on “recognition of decent work for all” and labour brokers are against that x Government is left with the burden of taking care of orphans left by TES system x Workers who wanted to attend the hearing were told to say what the TES instructed them to say or else lose their jobs x Cannot regulate abuse x TES against nation building - majority white with black workers 5 [ 652 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, 5. Public hearings in the Eastern Cape Province, 28 -29 November 2009
5.1 Introduction
On the 29 October 2009 the Portfolio Committee on Labour held a meeting to assess the input made during its hearings on labour broking in the four provinces where the hearings took place. A resolution was taken in the above-mentioned meeting to extend the hearings once again to the Eastern Cape Province. The Committee held public hearings in the Eastern Cape Province on 28- 29 November 2009.
5.2 Delegation
Ms L E Yengeni (ANC) – Leader of the Delegation Mr E Nyekemba (ANC) Ms L Makhubela-Mashele (ANC) Ms N A Mnisi (ANC) Ms A M Rantsolase (ANC) Mr A Louw (DA) Mr I Ollis (DA) ensa,2 ac 2010 March 24 Wednesday, 5.3 Presentations by different stakeholders and individuals
The Committee heard oral input from organisations, individuals and workers. The table below reflects organisations, workers and individuals who called for the total banning of labour broking and those who called for the regulation of labour broking. ensa,2 ac 2010 March 24 Wednesday, 5.3.1 Day 1: Saturday, 28 November 2009
Public Hearings in East London – City Hall – Eastern Cape Province
Present: Organized business, labour and individual members of the public.
Organisations and individuals who called for the Organisations and individuals who called for the banning of labour broking regulation of labour broking 653 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Nceba Sitole (Queenstown)
- worked for premier foods - all services were outsourced to a private company - another company (Kageng co.) took over with the promise of maintaining same conditions as the mother company - Kageng introduced new company (Imperial staff) - Imperial staff was a labour broker - were told unions were no allowed - were paid half the usual salary - overtime was not paid - UIF contributions were also not deducted - Recommends that government must terminate TES
Xolile
- Were dismissed because they were members of the union - Their case still with the CCMA - Request government to ban TES - Company specifies that they want only White and Coloured people - TES promotes poverty amongst communities and 5 [ 654 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, contributes to the increase in crime rate - Whilst mother companies would pay R200 per day, TES would pay R90 Simon
- There is no future under the TES - Dismissed without proper procedures followed - Transport more expensive than wages - TES employees earn far less than permanent staff - Upon losing the job, workers do not receive any benefits
Eric Mokoena
- Started working for the TES since 2000 - Workers under the TES work under unfavourable conditions without proper protection - TES should be abolished
Requests government to send inspectors in order to witness 2010 March 24 Wednesday, conditions Elvis (Mdantsane)
- Worked for a labour broker called Workforce Employers - Transferred to DHL - People who came after him were employed permanently- Used to earn R500 whereas permanently employed workers earned R4000
Patrick Phakade
- Victim of labour brokers - Got paid on Christmas day ensa,2 ac 2010 March 24 Wednesday, - Works for Transnet - Rare to find workers who have not been injured - Workers forced to work whilst injured - Given a choice of going to the doctor or losing the job - Gets paid R400 a week and never received any increment - Deducted salaries on election day - Should be banned Raymond 655 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - Painter and got injured - Admitted for three weeks in hospital - Lost the job and never got any benefits from the company Kholekile Sosarha
- Unemployed - Used to work for SAB in Wesbank but terminated employment in 2002 - Employer told him to work under labour broker called CAPACITY - Salaries were cut, although performing the same job - Whilst the salary was fine, the labour broker deducted a certain portion as well - Recommends a total ban of labour broking Mandla (self-employed)
- Requested clarity between the labour broker and the employment agent? - Members of Parliament are responsible for the labour laws, which in turn affect the general workers - Labour brokers are middlemen who have no role to play in the employment relationship 5 [ 656 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - Have to eliminate the middleman Dumezweni
- Worked for three cleaning companies under labour brokers - Don’t have basic salaries - When contract ends, workers do not receive benefits - Labour broking should be banned Sipho (works for Workforce)
- Payments to workers are not the same and workers are expected to keep quiet - Labour broking should be disbanded
Vuyo Bikitsha (NUMSA)
- Labour broking should be disbanded - Requesting Parliament to implement the recommendations as a matter of urgency - Exploitation of women within factories – sexual
harassment since they are vulnerable 2010 March 24 Wednesday, - Organisational rights of Trade union are being undermined - Companies demand that unions should hold their meeting outside of the company premises - If workers falling under labour brokers join strike action, they are being threatened with losing their jobs - Labour broking should be disbanded
Zwelakhe (Driver under CAPITAL labour broker )
- Workers are being fired without proper procedure being followed ensa,2 ac 2010 March 24 Wednesday, - DoL has never been to the workplace to inspect the environment - No skills development programme - Workers are not allowed to engage in strike action, if they do they get fired - Labour broking should be disbanded
Nombuleo Machebeni (COSATU)
- The contracts of workers falling under labour 657 ]
NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, brokers are being terminated when they join trade unions - Workers are not allowed to take sick leave and sick leave certificates from clinics and public hospitals are not recognised, only private practitioners are recognised - Not assisted by CCMA since HR bosses go to CCMA to postpone cases in some cases DoL and the union have however assisted
Worker under labour broker
- Section 198 of the Labour Relations Act (LRA) and Section 82 of the Basic Conditions of Employment Services Act (BCEA) should be repealed completely - Employees that are hired through labour brokers have two employers - These sections violate the fundamental rights of the workers as stated under the Constitution - For example, workers have rights to fair labour practices, however, under the TES these workers do not have such rights - When not needed by the employer, employees are neither employed nor unemployed 5 [ 658 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - Economic activities of the TES should be limited through the repealing of these two sections Mthobeli
- Been victimised by CAPACITY, KELLY and Global Recruitment labour brokers - Never received a payslip - Salary being deposited in the bank without knowing how much it is - Currently companies retrenched workers and replaced them with TES or outsourced the services to labour brokers - TES workers are not allowed to go on strike - Requested Parliament to work with COSATU in reviewing the LRA
Nolukholo (Employ Rights)
- Works for the labour broker Employ Rights
- Workers in permanent employment are outnumbered 2010 March 24 Wednesday, by the temporary workers - However, the TES workers are paid less - Have never met or seen their employer - After seven years working in the same company, workers are transferred to a new company - Upon returning from maternity leave, workers start as new entrants and forfeit all the benefits - Labour brokers should be banned
Nonzame Nyawombini
- Works for Employ-Right labour broker - Workers are victimised ensa,2 ac 2010 March 24 Wednesday, - Workers not paid during lay-off period - Provident fund being deducted without the workers’ knowledge - The Provident Funds rates have also increased without workers’ knowledge - Employers told them that they will not receive the previous provident fund money - Labour broking system should be abolished
Lindiwe Rhai 659 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - Worked for Employ-Right labour broker - Worked for 5 years for the company - Have not received the retrenchment package - Labour broking should be banned
Luthando
- Started working under labour broker in 2006 - Employees employed under labour brokers do not get paid the same as permanently employed employees - Working conditions are also not the same, e.g. TES employees have to buy their own protective gear - Should be banned
Ntobela from East London (CAMPSTINE Labour Broker)
- Workers work long and irregular hours and do not get paid - Workers never received a salary increment 6 [ 660 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, 5.3.2 Day 2: Sunday, 29 November 2009
Public Hearings in Port Elizabeth – Coega Village – Eastern Cape Province
Present: Organized business, labour and individual members of the public
Organisations and individuals who called for the banning Organisations and individuals who called for the regulation of labour broking of labour broking
Xolisile Jikile (work for municipality) Phakamisa Vuka - Works for Supply Chain Services - Under Masakhane labour broker as a driver - Majority of employees are coloured people - Never earned bonuses, pension and medical aid - Regulate labour brokers - Labour brokers don’t have offices, end up not - Client companies should be regulated to employ knowing where to go to when there is a problem staff permanently after a certain number of months - Only received verbal contract with the labour broker e.g. three months - Plead with Parliament to ban labour broking - Council must specify rates for TES employees
Songezo Labour broker
- 500 000 people employed by the TES 2010 March 24 Wednesday, - Works for TES under Flexida - 30% get permanent placements - Employees perform same tasks but paid differently - TES also contributes to the GDP - TES employees not provided with protective gear - In 2008 it contributed R26 billion - Not paid for sick leave - R150 million contributed by the TES towards skills - Parliament must ban labour broking development - The industry should be regulated
Loyiso Spearman Polin - Vice Chairperson of the Eastern Cape Services - Worked for Fruit and Veg on a permanent contract SETA a labour broker - In 2002, the organisation introduced a labour broker, - SETAs also conduct training through the labour to operate within Fruit and Veg, from there things broker started to change - Also receives discretionary grants from the Services ensa,2 ac 2010 March 24 Wednesday, - Workers under labour brokers are ill-treated and Seta work under unfavourable conditions - This causes confusion and tension between the workers - Request Parliament to ban labour broking
Thembisa
- Works for the traffic department under Masakhane labour broker 661 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - Uneven payment system whereas performing similar tasks - Urges Parliament to ban labour broking agencies
Nomfanelo
- Works for the Department of Health under a labour broker - First salary referred to her as the assistant nurse and later on was reduced - Never met the TES employer - A new labour broker later took over - Has requested the new TES to visit the place of work but to no avail - Suggests that the TES system should be banned -
Individual
- Calls for total Ban of TES, no regulation - Salaries paid by the TES are not enough for essentials such as food and children’s education 6 [ 662 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - Works for Parmalat under Workforce TES as a system operator - Co-workers performing similar duties earn different salaries - No bonuses - Instead of bonuses, labour brokers deduct R30 from the salaries - The batter way is to ban labour broking
Mncedisi Hlutshwa
- Work for a labour broker at Coega - Paid R10.50 per hour - Not allowed to embark on strike action - Labour broking should be banned
Khuthala Hlathi
- Worked for Transnet under a labour broker - Worked through a learnership
- Upon finishing was placed under contract and later 2010 March 24 Wednesday, placed under the TES for a year - Employees refused to sign the contract with the TES, but till today they deduct the TES services from the employees’ salaries - When requesting safety gear, they were told to provide their own safety gear - The system is abusive and it must be banned
Mzwandile
- Working for Post Office under the labour broker - People who join the post office are trained by him but he’s not permanently employed whereas those ensa,2 ac 2010 March 24 Wednesday, new entrants are employed permanently in the Post office - The system is abusive and must be banned
Phenduza Gwatshu
- Works for Parmalat under the Workforce TES - Works for the department called Longlife as the systems operator - Should be banned 663 ]
NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - During the 10 years employed by the TES, he has not seen or met the labour broker
Xolani
- Works for CAPITAL labour broker for 4 years - There is no life under labour brokers - Companies are using labour brokers to run away from their responsibilities - Labour broking must be banned
Nomahlomi
- Was a temporary worker for five years and were later transferred to Grape International (TES) - Cannot get loans from any bank due to payslips they receive - TES company double-deducts what has already been deducted by the client company - Labour broking should be abolished
Phathisa Cawe
- Works for Prestige TES at Greenacres Hospital as a 6 [ 664 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, cleaner - Cleaners are also taking over the nurses’ duties such as delivering food to patients although they are not paid for extra duties - If equipment is faulty or broken, employees have to pay for replacement through salary deductions - Ban labour brokers because they exploit people - Company employs white people to supervise workers although they have no clue about the jobs
Thundezwa
- Works for ZABA TES - Working conditions are unfavourable - Not paid for sick leave - The system must be banned
Ntomboxolo
- Employers promised to deduct the provident fund
for the employees, however nothing written has been 2010 March 24 Wednesday, furnished as proof - R25 is paid for the night shift - TES should be banned
Zolile Mhlaba
- Zama Cleaning Services - Worked for Prestige before but left because of racism in the company - Were fired for participating in the strike action - Work in carbon contaminated environment but not given protective gear - Labour broking must be banned ensa,2 ac 2010 March 24 Wednesday,
Bulelwa
- Works as a volunteer at the Motherwell Health Centre - Under a contract and without benefits - Labour broking must go
Nondumiso 665 ]
NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - Works for the Masakhane TES for the PE municipality - Termination within 24 hrs without notice - Being threatened if they want to join unions - Ban labour broking - Remove the middleman
Noziqhamo
- Works for Khangela at Firestone - Never received any benefits - Ban labour broking because it exploits workers Khayalethu
- Worked for the gentleman who had won a tender from the municipality - Were never paid their salaries
Secretary for the Communications Union in the Eastern Cape
- Works with Telkom and the Post Office - The DoL has an obligation to clear the State Owned Enterprises of the TES 6 [ 666 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - TES are the legacy for the past administration - Legalises slavery - Ban the system and ensure that all workers under the labour brokers are permanently employed directly by the company
Mpumelelo (Shopsteward)
- Company outsourced services to the labour broker - People were promised that salaries would not decrease, however they were decreased - Another new labour broker called Sizeka took over - Nothing has changed since both Sizeka and the client company shift blame and responsibility - If retrenched, workers don’t know how to access their provident fund benefits - Ban labour broking
Thandisizwe ensa,2 ac 2010 March 24 Wednesday, - Working for CN business furnishers for Labour Core (TES) - Since 2005, deductions for provident fund have not been made and no bonuses have been paid - The bargaining council declared that employees should be earning better wages and benefits - TES should be banned
Cosatu Representative
- Confusion caused by the primary and secondary employer - Trade unions also struggle to represent TES ensa,2 ac 2010 March 24 Wednesday, employees in cases of disputes
Ntombizandile
- Works for Prestige labour broker - Referred to as cheap labour - Work same hours but different payments - Ban labour brokers Mlandeli 667 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, - Works for Parmalat under Transman Workforce labour broker - Workers are being threatened with dismissal if they raise concerns about their wages - Agencies should be banned
Dunyiswa Thetha
- Works for Naledi labour brokers - Works for R60 per day - When injured, no sick leave is being paid - Payslips are hand-written - No benefits - TES workers are paid far less than the permanent workers There are people who start work at six and have to sleep outside work premises since they do not have transport
The system must be banned Beauty
- Working under labour broker - Lost the job because she forgot to leave the key at work 6 [ 668 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Worker
- Works for Workforce labour broker - Packaging in the storeroom - Workers have to pay from their pockets when products get damaged - Labour brokers do not specify the term of contract in their payslips - Ban labour broking
Mzwandile: member of the SACP
- Workers’ contribution to the country’s economic development has significantly dropped - TES has been systematically used as a scapegoat to undermine the current labour legislation - There’s a corrupt relationship between the employers and the labour brokers, in order to employ people who do not necessarily qualify for such positions
- TES makes quick money through victimisation of 2010 March 24 Wednesday, workers Nomonde Jawu (SATAWU organiser)
- Deals with labour brokers throughout - Labour broking should be banned - When workers’ salaries increase, labour brokers will cut working hours just to cut salaries Zama Cleaning worker who worked the night shift. When requesting assistance from the company, they refused and he died Nondumiso
- Works for labour broker under Transnet ensa,2 ac 2010 March 24 Wednesday, - No benefits if you are under labour broker - Salary fluctuation - Ban labour broking
Worker under Capacity labour broker
- Capacity workers have not been entitled to sick leave nor allowed to join the union - Regulation should not be an option - There’s a 30% maximum limit of TES companies 669 ]
NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, that can be used by the client company. However, companies do not comply with that 30% stipulation - Proposing a complete ban of labour brokers Worker under labour broker
- Workers’ salaries are deducted when they take sick leave - No benefits at all - Labour broking must be banned
Vuyo Bhikitsha (NUMSA)
- Who stands to benefit from the TES system? It does not benefit the workers - Code of Good Practice – Section 56 on who is an employer and the employee should be an instrument to determine whether TES are employers or not - Labour brokers must be banned Adam (NUMSA shopsteward)
- Workers are pushed by their conditions to accept such unfavourable conditions - Labour brokers are inconsiderate of the workers’ circumstances 7 [ 670 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Pinkie
- A caregiver at Livingstone Hospital since 2007 - They were under the learnership and later told they were switched to a contract - No longer perform the tasks they agreed on - Have to buy their own uniforms - Initially worked between 07h00 – 16h00 but now work between 07h00-19h00 - Had to perform nurses’ duties - Labour broking should be banned
Bulelani
- Works under the TES called IFM - No benefits received - TES should be banned
Kholeki Mbetje
- Told to buy their own protective gear by the labour 2010 March 24 Wednesday, broker - Suggesting that labour broking should be banned Worker under Madimang labour broker
- TES company changed the name of the company from Polar to Madimang - Difficult to send children to school - Paid R30 per day - Sent to Cash Loans for money if they request financial assistance - Labour broking should be banned ensa,2 ac 2010 March 24 Wednesday, Andiswa Jacobs
Ban agencies Micheal
- Works for SASKO under the TES company - Has worked for years but still has nothing under TES - Ban agencies or labour broking 671 ]
NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Sicelo: NUMSA shop steward
Labour broking is a criminal offence and must be stopped urgently Andile Jalo
- BLG labour broker under the General Motors company - Works as driver - Ban labour brooking because it exploits workers
Mazotsho Dukwe (COSATU – Deputy Chairperson in PE)
- Labour brokers are involved in human trafficking - Seasonal workers/contractual employees are also victimised - No social benefits such housing subsidy and medical aid - 1997 ILO Convention to ban labour brokers There’s an urgent need to address the notion that labour brokers create jobs 7 [ 672 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, 6. Conclusion
Most of the individuals/workers, including labour trade unions called for the total banning of labour broking as they were of the view that the system exploited workers. Labour brokers, including some workers working under labour brokers were of the opinion that there were some labour brokers who operated according to labour laws and therefore suggested that the industry should be regulated.
7. Committee Evaluation
The Committee, during its deliberations and evaluation identified the following bad and abusive practices in relation to various labour laws:
7.1 Violations of the Labour Relations Act (LRA)
Labour broker contracts often exclude the right to strike in contravention of the LRA and the Constitution Workers are threatened with dismissal should they join labour unions. Some labour broker contracts even require workers to sign stating that they will not join labour unions. Workers are often moved around between different workplaces to prevent them unionising. Illegal forms of discipline are adopted - no compliance with due process or workers’ right to present their side of the story. Dismissals without following proper procedures are common. Scab labour is used as a mechanism to undermine the right to strike and collective bargaining in general. 2010 March 24 Wednesday, Minimal job security - a client who does not want a specific worker for arbitrary reasons often instructs the agency to allocate someone else. As the client is not treated as an employer, the worker does not have recourse to protection against unfair dismissal. The worker is treated as still being employed by the broker despite not being given any assignments. Violations of the LRA retrenchment provisions - often full time/permanent workers are retrenched only to be re-hired or replaced through brokers, with wages and employment conditions being substantially downgraded. Workers are often misled by the nature of the contracts, often believing that they are employed on a permanent basis only to discover that they have been employed on a short term contract by a labour broker. ensa,2 ac 2010 March 24 Wednesday, 7.2 Violations of the Basic Conditions of Employment Act (BCEA)
Wage rates are lower for workers supplied by labour brokers as compared to permanent counterparts employed by the same “client”, and despite work being the same. Bargaining council agreements are generally not applied either. Non-wage benefits and rights such as medical aid, retirement provision, shift allowance, transport, maternity leave and sick leave are not provided, although permanent workers (directly employed by the so-called client) are entitled to them. This is treated as a cost-saving by employers. Illegal deductions are made from wages and often not explained. Sometimes deductions amount to the greater proportion of the entire wage paid out. Minimum conditions including work hours are violated. Wages are paid late. 673 ] NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, There is poor income security as salary fluctuates from month to month. Sick workers are replaced by others furnished by the broker and are not paid during this period. Longer work hours in violation of the BCEA. Overtime is not paid. Payslips are not provided. If workers manage to negotiate a higher rate of pay often brokers will reduce hours to so that they do not receive the benefit of this.
7.3 Violations of Employment Equity and Unfair Discrimination
There is overt gender and racial discriminatory practices in violation of the Employment Equity Act. Labour brokers apply racial profiling systems to workers in determining appropriate placements.
7.4 Health and Safety violations
Protective clothing is not provided or if the labour broker agency does provide them then workers are charged for the costs. As assignments are often short-term in nature workers supplied by a broker are often unfamiliar with the hazards and safety procedures applicable to a particular workplace, and certainly do not receive the same training as permanent and directly employed workers. Accidents are therefore more likely to occur. Neither the client company nor the broker takes responsibility for workers who are injured. Often all that happens is that the injured worker is removed from others and no treatment is provided. 7 [ 674 NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, 7.5 Skills Development
No access to training and development opportunities. Progressive deskilling of workers due to short-term and irregular nature of contracts. Often do not contribute towards skills levy.
7.6 Other/General Concerns
Overall employment conditions are such that workers are trapped in a continuous poverty cycle. Growing feminisation of precarious work with men being replaced by women as they are paid less. Labour brokers destroy decent or quality jobs by displacing workers from the sector that the workplace is located in and through the use of insecure contractual relations. Labour broking has become a mechanism that is intentionally used for the purpose of evading compliance with labour legislation, which is seen as a nuisance and additional cost. Workers who are vulnerable socio-economically in society are predominant amongst those forced to work through labour broker agencies. Workers remain in a temporary position despite being employed/located within a client’s workplace for lengthy or indefinite period. There is currently no definition of “temporary work”. There is little distinction between abusive practices of large industry players and so-called “bakkie brigade”. General violations and overall poorer working conditions are applicable to both. Workers under labour brokers are vulnerable to sexual harassment owing to the precarious nature of their contracts. ensa,2 ac 2010 March 24 Wednesday, Labour broking has the effect of increasing xenophobia especially as differential conditions are employed. Has the effect of fragmenting the workplace and sectors, by dividing workers even if they are doing the same work, thereby undermining rights to collective bargaining. This facilitates an environment where differential conditions are applicable to workers. It is not possible simply to cure many of the above problems by extending the application of legislation to workers with labour brokers. Some rights “disappear” once they become party to the triangular employment relationship. For example, what rights can be applied in terms of section 189 and 189A of the LRA to such workers. Another example that illustrates this is section 197 of the LRA. If a client company is transferred or sold as a going concern, only those directly employed will be transferred in terms of section 197 as workers supplied by the broker are treated as part of a commercial contract. With the general worsening of conditions of workers subject to labour broking and other atypical work arrangements, the effect is that the employers are benefiting not only by avoiding labour law organisations but are effectively being subsidised by Government which must then provide such services as pension and public health care for these workers. ensa,2 ac 2010 March 24 Wednesday,
8. Recommendations
x The Department of Labour should amend or redraft section 198 of Labour Relations Act as it brings confusion to the employment relationship x The Department of Labour should examine all labour legislation pertaining to the concerns raised in the full report of the committee and to the above-mentioned categories of bad or abusive practices. x With reference to outsourcing and subcontracting, the Department of Labour should introduce legislation to address the abusive practices by holding all parties liable for the conditions of the workers. 675 ]
NONEET,TBIG N OMTE EOT O31—2010 NO REPORTS COMMITTEE AND TABLINGS ANNOUNCEMENTS, Report to be considered.