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Labour brokers face the axe.
M & G of 14 April 2009. 'Government has threatened to ban labour brokers after
the next election. The claim is made that the system lowers the wages of workers
and encourages casual work. Labour Minister Membathisi Mdladlana first made the
call when he was campaigning in Langa in December last year. Mdladlana told
residents that the ANC plans to ban labour brokers after the next election.
According to a report in the Sowetan, Mdladlana told a small group of residents
that a vote for the ANC would mean that ban would be implemented after the next
election. “Labour brokers are not doing our workers a service. “People who are
employed by labour brokers have no pensions, no benefits — in the end they are
just dumped,” the Sowetan quoted Mdladlana as saying. There was strong support
for the call by labour federation Cosatu. “Labour broking is a form of human
trafficking,” Cosatu spokesperson Patrick Craven said in a statement. “These
companies ‘sell’ the labour of workers to the highest bidder and then pay them
the lowest possible wage, often in cash with no deductions for tax or UIF, let
alone any benefits. The broker then pockets the difference as his or her profit.
It is an extreme form of free-market capitalism which reduces workers to
commodities that can be traded for profit, just as if they were meat or
vegetables”. “Legislation clearly states that the ‘employer’ is whoever actually
pays the workers’ wages, i.e. the broker, who thus should obliged to comply with
all an employer’s statutory obligations to the workers. Often in practice,
however, the broker and the company to which they supply the workers, each try
to dodge their responsibility to contribute to tax, UIF, provident funds,
medical aids, health and safety compliance, skills development, etc by claiming
that it is the other’s responsibility”. Opposition parties claim that if broker
are banned then 500 000 jobs will be at risk. That’s the number of people who
are currently working through labour brokers. Would these jobs really fall away,
or would the clients have to employ the workers directly? Are workers better off
with labour brokers who can provide them with UIF, training opportunities and
work experience. Like many industries there are big differences between the top
and the bottom. The larger brokers, or temporary employment services (TES) as
they prefer to be called, keep things above board. But for each of those there
are many hundreds of smaller operations where unemployment insurance isn’t paid
and workers have no security. What the labour brokers/TES companies provide is
flexibility — the ability to hire and fire employees as needed. This is what
business wants, and exactly what government and unions are trying to avoid.
Ban Labour brokers. COSATU.
'The Congress of South African Trade Unions applauds Labour
Minister Membathisi Mdladlana for his statement to Langa residents that the ANC
will “ban labour brokers after it wins next year’s election” and that “a vote
for the ANC means exactly that”. COSATU totally agrees
with him that “labour brokers are not doing our workers a service. People who
are employed by labour brokers have no pensions, no benefits – in the end they
are just dumped”. The federation also warmly welcomes
the banning of labour broking by the government of Namibia.
Labour broking is a form of human trafficking. These companies
‘sell’ the labour of workers to the highest bidder and then pay them the lowest
possible wage, often in cash with no deductions for tax or UIF, let alone any
benefits. The broker then pockets the difference as his or her profit. It is an
extreme form of free-market capitalism which reduces workers to commodities that
can be traded for profit, just as if they were meat or vegetables.
Legislation clearly states that the ‘employer’ is whoever
actually pays the workers’ wages, i.e. the broker, who thus should obliged to
comply with all an employer’s statutory obligations to the workers. Often in
practice, however, the broker and the company to which they supply the workers,
each try to dodge their responsibility to contribute to tax, UIF, provident
funds, medical aids, health and safety compliance, skills development, etc by
claiming that it is the other’s responsibility. Labour
brokers are also basically anti-trade union. Because ‘their’ workers are
constantly being moved around from one workplace to another for short periods,
often with no access to union officials or the possibility of stop-order
deductions for union subs, they find it very hard to join a union or to remain
as members. Labour brokers are also frequently ‘scab brokers’ and
strike-breakers. We look forward to seeing the next ANC
government finally bring an end to labour broking and all other forms of
casualisation. All workers must have one clearly identifiable employer who is
legally responsible for ensuring that they all receive all the benefits and
protection they are entitled to under our constitution and labour laws,
including the right to join and remain a member of a trade union.
Patrick Craven (National Spokesperson)
Labour-broker
employees have rights.
'Employing people via a labour broker is often seen as a
hassle-free solution by employers. But everyone concerned needs to know and
understand their rights and obligations, as employees of labour brokers are
still employees and have rights. In Moremi and Coldline
Food Brokers CC, the Council for Conciliation, Mediation and Arbitration (CCMA)
commissioner was called upon to consider the claim of an employee to 10 weeks'
severance pay based on his 10 years of service. He had
been employed by a labour broker for a period of just over 10 years, during
which time he was seconded to work as a merchandiser for Sasko at various
stores, merchandising bread. He was employed on a temporary contract which had
no specific end date. The labour broker was given notice
by Sasko that its contract was to be terminated and, in turn, it advised all its
employees accordingly. Moremi received a number of notices from the labour
broker (his employer), none of which mentioned severance pay or referred to
alternative employment. He subsequently found alternative employment, but
pursued a claim for severance pay. The commissioner said
that on the facts, it was clear that the company had had no intention of ever
paying severance pay to all its employees who lost their jobs when it lost the
Sasko contract, ostensibly because they were temporary workers. There was also
no corroborated evidence that alternative employment was available until a few
days before Moremi's employment was due to end and then it was a vague offer. By
then he had found another job. The commissioner also rejected the labour
broker's arguments that the purpose of severance pay was to tide over the
employee during the period after retrenchment and while looking for another job
(and, therefore, that because Moremi had found other work he should not get
severance pay). The commissioner pointed out that South Africa has a
well-developed labour law on the subject of severance pay which can be
summarised as follows: severance pay is meant to cushion the blow of
unemployment; as a gratuity for services rendered; and as compensation for
employees who have lost their jobs through no fault of their own. It also deters
employers from resorting to retrenchment lightly. The amount of severance pay is
linked to length of service, with no ceiling, and the formula applies to all
employees, irrespective of status. The allegedly
temporary contract with no end-date was nothing more than permanent employment
subject to termination only for good reason. There had been no proper offer of
alternative employment which might disentitle him to severance pay. Therefore,
Moremi was entitled to severance pay based on his 10 completed years of service.
The commissioner also awarded costs in favour of Moremi so that he could pay the
attorney who had assisted him in upholding his rights. This is unusual in the
CCMA and shows the extent of the commissioner's disapproval of the way Moremi
was treated. This case illustrates the dangers of
thinking that because a contract says it is temporary, it can simply be
cancelled when the labour broker loses a contract. Employees of labour brokers
need to be treated fairly just like any other employee. Employees who are
retrenched are entitled to severance pay unless they are made an offer of
reasonable alternative employment.
Susan Stelzner is head of employment law at Edward Nathan
Sonnenbergs.
Regulating Labour
Brokers.
'Cosatu is calling for the ban of labour brokers following such
very action having been recently taken in Namibia. This has further prompted the
Department of Labour to draft regulations outlining new requirements for the
registration of staffing organizations and has proposed the creation of an
"employment services system" which will see all job vacancies, and all
appointments made, reported to the government. Cosatu's
argument is that many labour brokers fail to adhere to minimum standards of
employment, and the transient form of such employment makes it difficult to
organize workers. However, the Confederation of
Associations in the Private Employment Sector (CAPES) is fighting back, pointing
out that many of such workers are in learnerships and various skills programmes
who wouldn't have employment if organizations didn’t have the opportunity to
outsource employment. Further, CAPES is fearing that many of its agency members
will be unable to comply with the proposed stringent regulations.
The use of labour brokers allows employers more flexibility in
the way they plan to use their resources, and provides relief from
administrative burdens of the employer (eg: PAYE; pension fund contributions
etc). As a result, labour brokers have become increasingly attractive to
employers, particularly as a solution for short term projects and for dealing
with seasonal spikes in production. There are roughly
6000 recruitment centres nationally. Further, should the definition of "labour
broker" be interpreted literally, this would include anyone who provides a
service if he has employees who do some of the work (eg: plumbers; electricians
etc). The proposed regulations would therefore have an extensive impact on not
only large businesses, thereby also discouraging investors, but also small
businesses which do not even employ the services of traditional labour brokers.
Such an attack on workforce flexibility would undoubtedly be
negatively perceived by employers and investors. CAPES is therefore hoping to
subdue this move by pleading a case that the answer is not to ban the concept of
labour brokers, but rather to manage it.
Anna Posokhov is a Candidate Attorney at Webber Wentzel.
Mdladlana keen to ban labour brokers.
'LABOUR Minister Membathisi Mdladlana has threatened to ban
labour brokers if the ANC wins next year‘s general elections.
Mdladlana, who was in Cape Town at the weekend campaigning for
the ANC, told Langa residents that “a vote for the ANC means exactly that”.
His remarks were hailed by Cosatu, which likened labour broking
to “human trafficking”, “a modernised form of slavery” and “an extreme form of
free-market capitalism”. Cosatu spokesman Patrick Craven
said the practice had been effectively outlawed in Namibia and urged the
government to follow the example. “These companies sell
the labour of workers to the highest bidder and then pay them the lowest
possible wage, often in cash with deductions for tax or UIF, let alone any
benefits. The broker then pockets the difference as his or her profit.”
Mdladlana remarked early this year that “there is no place for
labour brokers in a harmonised labour market that seeks the interests of the
people first”. The issue featured prominently during the
metalworkers strike in the Eastern Cape last year. Goodyear in Uitenhage came
under heavy pressure from the National Union of Metalworkers of SA (Numsa) to
abolish its relationship with labour broker Kelly.
Vehicle glass manufacturer Shatterprufe also had to accede to the union
federation‘s demand this year to do away with brokers and employ temporary
workers permanently. “In line with our Namibian
counterparts, the process of phasing out labour brokers should be speeded up,”
Numsa regional organiser Andile Zitho said yesterday.
“Our national congress resolution was categorical that the labour brokers should
be outlawed.” Cosatu-affiliated unions also contend that
labour brokers are “anti- trade union”, as workers who were employed for short
periods found it difficult to join trade unions.
Avoid liability when using labour brokers; independent contractors.
Ernst & Young Services (PTY) Ltd. 'By
making use of labour brokers or independent contractors, you could inadvertently
expose yourself and your company to liability claims. It is a reality in today’s
business world that organisations make use of labour brokers to supply them with
personnel or independent sub-contractors to conduct certain work on their
behalf. Companies engage with contractors of labour brokers for any one of a
number of reasons: they may require specific expertise, or have a temporary
requirement for extra labour over busy periods. Businesses are, however, exposed
to the risk of potential liability claims when using this type of labour.
Avoiding such claims does not mean staying away from these services, but rather
understanding the attendant risks. That allows for the implementation of
appropriate processes and controls to address these risks. The tax and labour
law implications of using employees of labour brokers and contractors are
generally known. These are behind two of the lesser recognised dangers that lurk
in these situations, which are the action against a
client of a labour broker for occupational diseases and injuries suffered or
sustained by an employee of the labour broker and the liability of an employer
for the negligent conduct of an independent contractor.
Occupational diseases and injuries
Section 35(1) of the Compensation for Occupational Injuries and Diseases Act,
130 of 1993 prohibits injured employees (or dependants) from claiming damages or
compensation from the employer in a court of law for injuries or diseases
sustained in the course of their employment. The employer’s liability is
limited to paying assessments (contributions) to the state compensation fund
from which compensation is paid to employees. This applies only to the employer
of the employee only and not to third parties. A recently reported decision of
the Supreme Court of Appeal, Crown Chickens (Pty) Ltd t/a Rockland Poultry v
Rieck 2007 (2) SA 118 (SCA) highlighted the potential liability for occupational
injuries and diseases to which employers expose themselves when using employees
of labour brokers. In this case, Crown Chickens used a labour broker to supply
the services of a cashier (Ms Rieck) for a shop situated on the farm. Ms Rieck
had an employment contract with the labour broker, which paid her salary and
handled all other administration related to her employment. Ms Rieck performed
her duties under the control of Crown Chickens, which paid the labour broker.
During the course of an armed robbery, Ms Rieck sustained a gunshot wound
inflicted accidentally by a Crown Chickens employee. She claimed damages from
the company based on the negligent conduct of the security staff. Part of the
Crown Chickens’ defence was that Ms Rieck became its employee when her services
were hired to them, and that it was therefore protected against actions for
damages under section 35(1). The Court dismissed the appeal and ruled that based
on the correct interpretation of the definitions of ‘employer’ and ‘employee’ in
the Act, is that an employer is the person with whom the employee had a
contractual relationship, even if the employee performs his contractual
obligations for someone else. In this instance, Ms Rieck had a contract with
the labour broker and not with Crown Chickens, and therefore Crown Chickens as
the client of the labour broker was not immune against actions for damages
pertaining to occupational injuries and diseases sustained Ms Rieck. Liability
for the negligent conduct of an independent contractor When potentially
dangerous activities, such as construction work, are to be conducted on a
business premises, the services of an independent contractor are frequently
called upon, especially if the work is of a specialised nature. An occupier of
the premises will usually enter into an agreement with the contractor to
indemnify themselves in respect of potential damages resulting from the
dangerous activities. However, what happens should a customers or member of the
public suffer an injury and sue for damages? In Crawhall v Minister of Transport
and Another 1963 (3) SA 614 (T) the court ruled that “If work has to be done on
premises to which the public has access, and that work can reasonably be
expected to cause damage unless proper precautions are taken, the duty of the
occupier to see that those precautions are taken and that the premises are safe
persists, whether he does the work himself or through his own servants or
delegates it to an independent contractor.” The basic rule is that the occupier
of premises has a legal duty to ensure that persons who could be expected to
enter the premises are not injured, or damage is not caused to their property,
due to a dangerous situation on the premises. This does not mean that an
occupier would be liable for damages resulting from a dangerous situation
created by the unlawful and unforeseeable conduct of a stranger, unless the
occupier obtained knowledge thereof and failed to take reasonable steps to
prevent the damage. It is therefore apparent that an occupier cannot rely on an
agreement between himself and a contractor to indemnify himself from claims from
persons who suffer damage or injury due to the dangerous activities conducted on
the premises which he occupies. In
Langley Fox
Building Partnership (Pty) Ltd v de Valence 1991 (1) SA 1 (A), the
respondent, Mrs de Valence, suffered an injury when the left side of her
forehead struck a wooden beam suspended between two trestles at right angles
across the sidewalk on which she was walking. The beam
was erected by a subcontractor employed by Langley Fox Building Partnership,
which was employed to refurbish and extend a building. The court ruled that as
no steps had been taken by Langley Fox Building Partnership to guard against the
danger, it was liable to compensate the respondent for damages. The duty of an
employer of an independent contractor is to take steps to prevent harm to
members of the public. The court ruled that this will depend in each case upon
the facts; and that it is relevant to consider the following in each case:
. the nature of the danger
. the context in which the danger may arise
. the degree of expertise available to the employer and the independent
contractor respectively
. and the means available to the employer to avert the danger.
Furthermore, the court
noted that the list of consideration is in no way intended to be comprehensive.
'Labour
brokers exploit workers' - unions.
Pressure is growing on the government to regulate - even shut
down - the labour-broking industry, amid claims that workers are being
ruthlessly exploited for gain. The industry has defended
itself, claiming that brokers provide employment for about 500 000 workers a
year, at a time when jobs are sorely needed. The brokers
have been bitterly attacked by the trade unions, who described the industry as
another form of "human trafficking" and "modernised slavery".
The Congress of South African Trade Unions (Cosatu) described
it as "an extreme form of free market capitalism". These
claims were put to both sides of the argument in a sometimes heated discussion
on SAfm Radio's After Eight Debate on the need for regulation in the
labour-broking industry.The debating panel was given an assurance that the
industry benefited both the workers and employers by a spokeswomen for the
brokers, Debbie Lieberthal. She said brokers were
frequently used by companies when they had a shut down or were doing a temporary
project. "They do not want to employ permanent staff for a week or a month or
two months to finish a project," she said. "You cannot permanently employ 50
people for two days." Lieberthal said the trade unions
were opposed to the industry largely because it circumvented their control.
"One of the biggest reasons the unions are coming in and saying
this is because they do not have jurisdiction over the 500 000 people."
Lieberthal denied union claims that brokers paid "peanuts" to
their temporary workers, saying: "Are you telling me that R85 to R200 for an
artisan or a manager is 'peanuts'?" She claimed the
brokers had always paid more than a lot of companies offered to their workers.
"We supply staff on demand at wages that are agreed."
But the brokers were attacked by the general secretary of the Federation of
Unions of South Africa, Dennis George, who said the industry was undermining the
principle of "decent work". "It undermines the
Constitution of the right to collective bargaining. They set the rates." George
claimed companies were getting rid of permanent staff and hiring temporary
workers, for whom they did not have to provide benefits.
There was a need, he said, to get rid of the "bakkie brigade" and others who
exploited temporary workers without giving them the benefits to which they
should ordinarily be entitled. There was a need to uplift workers, agreed John
Botha, spokesman for the Confederation of Associations in the Private Employment
Sector. Botha agreed there were
some "problem operators" who were exploiting temporary labour. But, he said,
labour brokers were paying above minimum wages and complying with all the
statutory requirements.
Mdladlana plans to ban labour brokers.
DoL.'Labour Minister Membathisi Mdladlana was campaigning in
Langa when he told residents that the ANC plans to ban labour brokers.
According to a report in the Sowetan, Mdladlana told a small
group of residents that a vote for the ANC would mean that ban would be
implemented after the next election. “Labour brokers are
not doing our workers a service. “People who are employed by labour brokers have
no pensions, no benefits – in the end they are just dumped,” the Sowetan reports
Mdladlana said. There was strong support for the call by
labour federation Cosatu. “Labour broking is a form of human trafficking,”
Cosatu spokesperson Patrick Craven said in a statement. “These companies ‘sell’
the labour of workers to the highest bidder and then pay them the lowest
possible wage, often in cash with no deductions for tax or UIF, let alone any
benefits. The broker then pockets the difference as his or her profit. It is an
extreme form of free-market capitalism which reduces workers to commodities that
can be traded for profit, just as if they were meat or vegetables”.
“Legislation clearly states that the
‘employer’ is whoever actually pays the workers’ wages, i.e. the broker, who
thus should obliged to comply with all an employer’s statutory obligations to
the workers. Often in practice, however, the broker and the company to which
they supply the workers, each try to dodge their responsibility to contribute to
tax, UIF, provident funds, medical aids, health and safety compliance, skills
development, etc by claiming that it is the other’s responsibility”.
|
Using labour
brokers
Outsourcing, flexible labour relations and atypical employment are worldwide
labour trends which South Africa must follow to remain
globally competitive.
As the skills shortage in the country becomes more acute and the labour
legislation more demanding, labour brokers present an
alternative. With South Africa’s draconian labour
legislation and the critical lack of skills in the country,
companies face many challenges to create and maintain
skilled, flexible labour forces. The unintentional outcome of increased
labour legislation is unfortunately likely to increase the problems the
country already faces in terms of unemployment, job creation and skills
development. As companies increasingly need to focus on their core business
functions to remain competitive, many lack the expertise to deal with union
demands, wage negotiations, strikes, unfair dismissal cases, CCMA disputes
or disciplinary procedures. Labour laws are complex and companies need to
comply with a myriad of statutory requirements such as providing contracts,
salary slips, and the deduction and payments of PAYE, UIF and the SDL. In
addition, companies need to find ways of keeping employees motivated and
trained, while improving productivity and maintaining stable and
reliable workforces. The
services of a labour broker provide access to flexible and skilled labour
through temporary employment services, without the administrative burden of
complying with all the relevant legislative and tax issues. The benefits of
dealing with a compliant, ethical labour broker are enormous in terms of
savings on administration, payroll and pension costs, disciplinary
procedures and legal costs, trade union negotiation and payments, to name
but a few. Labour brokers supply contract staff, as well as temporary and
permanent employees to companies in a range of fields, from office staff to
factory workers and warehouse labourers. Using a labour broker offers
advantages that directly translate into reduced human resource costs and
risks whilst improving employee relations and production. They are updated
on the latest developments and changes in the labour environment and have
the resources to keep abreast of changes in the legislation and regulations.
Labour brokers remove the burden of finding,
screening and employing workers, as well as take care of the administration,
enforcement of discipline and payroll. A good
labour broker can provide a flexible staff solution and workers with the
right skills, but it is vital that companies use only labour brokers that
comply with the relevant legislation and offer a high level of service and
integrity. Compliance should be the main consideration when choosing a
labour broker. Making such a vital decision based on price alone, could lead
to costly consequences. Finding a registered and reputable labour
broker is important, because using a labour broker does not exempt companies
from all labour responsibility. In terms of both the Labour Relations Act
and good corporate governance, companies are obliged to make use of labour
brokers that are ethical, compliant, respectable and responsible. The Labour
Relations Act holds companies “jointly and severally liable” for actions of
labour brokers that contravene legislation and ethics. As such, companies
should carefully screen potential labour broker companies before making
their selection. |
How companies cheat workers. IOL of 19 November 2008. 'A
growing number of large employers are resorting to outsourcing in order to
bypass labour legislation, a Wits University report commissioned by the
Department of Labour has revealed. The report also
paints a damning picture of big mining and manufacturing companies' tendency
of contracting service providers who exploit their workers in order to
maintain their profits. Speaking at the release of the report into the
labour market on Tuesday, Wits Professor Edward Webster said there was a
growing informalisation of the labour market in the country.
Webster said the department needed to intervene in the
practices of large manufacturing companies in the supply chain. "What we are
seeing is a growing tendency by the large employers to outsource services
because then they do not have to pay out proper wages and benefits to
employees. "Workers are employed on contract by the
service providers and they find themselves at the bottom of the economy," he
said. Webster said the notion about two economies
existing was a misrepresentation of what was really happening.
"The so-called two economies are directly related. This
report is presented through the notion that South Africa is divided into two
economies; a first economy of modern establishments and decent work, and a
second economy consisting of a range of precarious and vulnerable forms of
work and survival activities. This is misleading. It is wrong to see the
informal sector merely as a set of survival activities performed by the poor
and destitute," he said. Webster said this was also
demonstrated in the liquor business, where a large SA Breweries truck that
delivers stock to an unregistered tavern "is directly involved with the
informal sector and was making money from the business".
Labour laws needs a revamp - Mdladlana. IOL of 14 October
2008. 'The enforcement of labour law needs to be revamped
as it is not sufficiently protecting workers' rights, labour minister
Membathisi Mdladlana said on Monday. Speaking at the
8th National Union of Mineworkers Congress in Vanderbijlpark, Mdladlana said
the exploitation of workers was being compounded by the increasing use of
labour brokers. "Informality has become the name of
the game by labour brokers and yet people want us to believe that our labour
market is rigid. How can it be rigid with the subcontracting that is so
common?" he said. "If it was rigid, it would be
difficult for chief executives of companies to retrench workers with such
ease." Unemployment in the informal sector has
increased by 20 000 between March and July this year due to a sharp decline
in formal employment, said Mdladlana. "A rise in
informal sector employment shows a need for the creation of decent work
agenda to protect the rights of workers," he said
Minister declares war on worker-right violating employers.
DoL. 'Labour Minister Membathisi Mdladlana has vowed to
"hunt down" any employer who continues to disregard the rights of their
workers in direct defiance of the country's laws. Addressing the
International Workers Day celebrations in Orkney, North West today, Minister
Mdladlana said that despite the constitution in which the protection of
every worker's right and the promotion of fair labour practices are
enshrined, clear evidence was that millions were continuing to suffer
varying kinds of vulnerability, including retrenchments and casualisation.
Quoting the latest labour force survey results of March this year, he said
that of about 13 million employed South Africans, only 7,7 million were in
permanent jobs, while the rest were either not registered with the
Unemployment Insurance Fund, (UIF) employed without any written contracts,
having no paid leave or medical aid benefits. "As the Department of Labour,
we are the first to admit that we have not been sufficiently effective in
enforcing our labour laws. We must therefore make a pledge today to hunt
down all these employers not paying UIF, leave, and having no written
contracts with their employees and enforce the law," he said. The minister
urged organised business to help identify law-flouting employers and expel
them from their membership of employer organisations. Trade unions could
also not allow a situation to continue where half of the country's workers
were not unionised despite this right being enshrined in the constitution.
"Organised workers make it easier for all of us to manage the labour market,
while unorganised workers are a recipe for disaster for all of us." The
Minister said the continued mass job losses were a direct contrast to claims
that South African labour laws were rigid and making it difficult to fire
workers.
Labour brokerage needed to
address the rampant workplace fatalities. DoL. 28 September 2007.
'A government intervention in the labour brokerage system was urgently
needed to address the rampant and unnecessary workplace fatalities, Labour
Minister Membathisi Mdladlana said in Richards Bay this week. The Minister
made the remarks during a visit to the mining company Richards Bay Minerals
KwaZulu-Natal where he was assessing progress made on various skills related
programmes which the department and the company agreed to last year. He said
the bulk of work-related accidents and fatalities were attributable to the
flouting of occupational health and safety measures mainly where operations
were conducted by contracted employers on behalf of someone else. "We have
to seriously look at ways in which this practice can be closely monitored
and regulated. Contracted employers are always a common factor in all the
tragic accidents that take place, including those at Sasol and Volkswagen.
We have to be vigilant of people who are only interested in profits and
making a quick buck at the expense of health and safety of workers," he
said. Richards Bay Minerals (RBM) is among the 'Big Five' companies in
Richards Bay that make use of the services of labour brokers. Some of the
labour brokers offer general safety induction training to the general
community at a cost to the unemployed. This practice is in contravention of
the Occupational Health and Safety regulations. RBM deals in mining of
titanium dioxide, rutile, high purity iron, zircon that is used in the
manufacture of automobile parts, welding robs and other chemicals. However,
the Minister expressed satisfaction at the fact that the majority of
employees among the nearly 2 000 strong RBM workforces were unionised. He
also commended the company's progress on skills development and employment
equity.
Labour reads
riot act to brokers.
IOL of 7 February 2007. 'The department of labour has warned that
labour brokers and contractors at Richard's Bay found to be recruiting
workers irregularly would be black-listed for future government tenders.
Spokesperson Zolisa Sigabi on Tuesday said the department would carry out a
surprise blitz on companies in the KwaZulu-Natal port town. She said labour
brokers and contractors were known to demand that work seekers pay for
medical certificates that become "passports" to finding employment.
According to the department, this cost should be borne by the labour broker
or contractor who was, in effect, their employer. "To make matters worse,
the unemployed work seeker, if successfully placed, is never reimbursed as
he should be."
The cost of
the certificate should be carried by the employer, she pointed out. The
department and big business at Richard's Bay had signed a memorandum of
understanding with regard to alleviating the exploitation of unemployed job
seekers. The blitz would also check on compliance with this memorandum,
Sigabi said. Department of labour inspectors had found that the company,
Kruger Bernade Consulting (Pty) Ltd, allowed workers to join its programme,
which placed them with companies upon receiving the documents at their own
cost. The "passports" were dubbed "KBC certificates". "The KBC Certificate
has an expiry period attached to it, which means that if a person is still
unemployed with a lapsed KBC Certificate, it will not be considered as
'valid' by these labour brokers or contracting firms," Sigabi said. Recent
investigations by the department had revealed that Kruger Bernade Consulting
had been awarded a tender by Bayside and Hillside Aluminium, Bell Equipment,
Mondi Kraft, Richard's Bay Coal Terminal, Richard's Bay Minerals and Ticor
SA, to provide induction training on Occupational Health and Safety to
workers of these contracting firms. Kruger Bernade Consulting could not be
reached for comment'.
Casual workers must have the same rights as
full-time employees.
The Star. By Terry Bell.
As I write this I am watching a labourer perched on the peak of a roof,
four storeys high, without a harness or any protective clothing. He works
for a roofing contractor, employed by a small-time developer to replace the
corrugated iron roofing of a large old building. He reached his precarious
perch by means of two ladders across two lower roofs and then by scrambling
on hands and knees to reach the peak to begin loosening and lifting off the
old iron cladding. Fortunately, the notorious Cape Southeaster is not
blowing, or his position would be even more precarious. Like most labourers
on the site, he is not a member of a union, is regarded as unskilled and
works the long hours demanded not primarily because he is unaware of the
labour laws, but because he is desperate for the work, despite the paltry
pay. He is one of an army of labourers working on burgeoning construction
sites around the country, contributing to the much-lauded building boom. He
also works in a sector that accounts for among the highest number of
industrial accidents, month by month and year by year. Many of these
accidents go unreported by uncaring employers who are all too often also
unregistered with the authorities. So they are reluctant to inform workers
of their rights. But these workers, often recruited from the sides of roads,
do have rights. And they qualify for compensation if and when they are
injured while working. This is the only general advantage of a centralised
compensation system, which removes from South African employees and their
dependants the right to sue employers for negligence resulting in death or
injury. All work-related accidents resulting in injuries or death are
supposed to be compensated for from a fund administered by the Workmen’s
Compensation Commission (WCC). The primary source of income for this fund is
contributions from registered employers. In the last financial year to
March, R2.93 billion was paid into WCC coffers by 295 651 of these
employers. However, there are many more smaller employers, a large number in
the construction sector, who are unregistered and as such liable to
prosecution. From this month, workers across the board may also have gained
greater access to the fund, should they suffer, or have suffered in the
past, temporary total disablement (TTD). This means being unable to carry on
in a job because of an industrial accident. The law states, as it has done
for 65 years, that any worker who is unable to continue in a job because of
injury is entitled to 75 percent of pay for up to 12 months. But until the
Legal Resources Centre (LRC) in Pretoria took up the case of former truck
driver John Molefe, the WCC had not applied that rule: payment was only made
for the period an injured worker was receiving “active medical treatment”.
“So even those workers whose accidents were reported and who knew to take
the matter up were not being paid what was due to them,” agrees Paula Howell
of the Pretoria LRC office. The case of Molefe is among a multitude of
compensation matters that have been outstanding for years. He was a driver
during crosscountry deliveries and expected to sleep in his truck during
overnight trips. Ten years ago, during an attempted night-time hijack, he
had one arm shattered by a bullet, but still managed to drive away and reach
a police station. However, his employer maintained that his shattered arm
was not an occupational injury. Assisted by the LRC, Molefe finally won
disability pay and payment towards belated medical treatment. But because he
had not received “active medical treatment” in the year after being shot,
the WCC refused to pay out his TTD claim. Faced with high court action last
month, the WCC agreed an out-of-court settlement, paying Molefe the amount
owing to him, plus interest to cover the delay. The Molefe case has been
hailed by the labour movement, which continues to fight an uphill battle to
impose adequate health and safety standards in the poorly organised
construction industry. “We welcome the Molefe settlement, especially as it
relates to the construction sector where casualisation has caused an
organisational nightmare for unions,” says Federation of Unions of SA
general secretary Dennis George. Cosatu spokesperson Patrick Craven agrees.
He adds: “Cosatu is deeply concerned at the appalling levels of health and
safety in the construction industry and welcomes any move that improves
safety, or in the event of injury, provides adequate compensation for
workers in whatever sector.” But while the LRC and the unions feel that the
Molefe settlement should be regarded as a binding precedent, it has not been
acknowledged as such by the WCC. However, this may only be a matter of time:
there are several more TTD cases pending and the LRC plans to use these as
the basis of a class action that will make all future claims, where sound
evidence exists, payable without argument. In the meantime, at least, that
man on the fourth storey roof is aware of his rights'.
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