Update: Amendments to Labour Legislation – 31 July 2012

Stakeholders flex muscles over labour law amendments

The debate around the proposed labour amendments law raged on in Parliament on Tuesday with half the presenters supporting the laws while others vehemently opposed them.

On the one side of the divide were the South African Local Government Association (SALGA), National Council of Trade Union (NACTU), and Congress of South African Trade Union (COSATU), while on the other side you had The American Chamber of Commerce in South Africa (AmCham), Agri- SA as well as Solidarity.

SALGA supported the objective of the amendments, especially that the amendments will create employment and decent work and protection for vulnerable employees against abusive practices. They however, said waste management should be declared an essential service.

SALGA said waste management is a public health issue that should be managed properly as failure to do so could negatively impact on the community.

Thulani Khumalo, Project Manager of NACTU, said they are in support of the amendments of current legislation to provide greater protection of vulnerable workers. “We believe that legislation plays an important role in creating decent work opportunities in the labour market.

We further believe that our current labour laws are very flexible. Our understanding of flexibility is that labour laws should make it possible for business to operate without sacrificing workers,” said Khumalo.

COSATU’s Prakashnee Govender said “subsequent to the National Economic Development and Labour Council process on the amendments of these bills, we had several meetings with the leadership of the African National Congress to address amongst others our call for a complete and full ban on the usage of labourbroking.”

Govender also deliberated on the expansion of scope of “essential service” to include public officials exercising authority in the name of the state, thereby excluding them from exercising their rights to strike.

She further suggested that there should be a provision for a new probationary type clause that would effectively allow employers to hire and fire employees during the first six months of employment, during which time the employees have no recourse to challenge an unfair dismissal either on substantive or procedural grounds or fairness.

AmCham said with these amendments, labour productivity will push up the cost of the least skilled labour without any corresponding increase in productivity and “this will result in higher cost of doing business in South Africa.”

Agri-SA said a larger number of the permanent employees on farms are provided with accommodation and it does not make sense to require farmers to provide seasonal workers with similar accommodation.

The union said on the section that empowers the Minister to make a sectoral determination regulating minimum increments, “this will punish employers who are paying in excess of the minimum wage and act as an undesirable disincentive to employ new employees than minimum wages. It also constitutes an unwarranted encroached by the state in collective bargaining.”

Solidarity called for the study on the regulatory impact assessment of the bills prior to them going through parliament.

The union also welcomed the proposed amendments to section 21 of the labour relations act aimed at extending the rights of minority unions.

They said this would strengthen collective bargaining particularly in the mining sector where “we have often borne the brunt of majoritarian approach.”

As expected, Labour Broking Division of the Construction Engineering Association of South Africa called for the proper regulation of labour brokering as opposed to a total ban as demanded by the union members.

Issued by: Department of Labour: Communication

31 July 2012