Cover story

Outlawing outsourcing: Will labour have its way?

With elections now past, it is time for the ruling party to deliver to its union supporters. This delivery could spell the end of the IT sector in South Africa, however.

09 August 2009

South Africa takes action

Although Namibia’s changes to its labour regulations have spurred on South Africa’s efforts, this is not in itself the catalyst for changes to the local legislative regime. The Confederation of Associations in the Private Employment Sector’s John Botha says changes have been on the table at the National Economic Development and Labour Council (Nedlac) since 2000. “Cosatu and the National Labour and Economic Development Institute have produced several research papers around the atypical or non-permanent employment environment over the last decade. Essentially this was labour-focused research into a labour issue. Around 2004/5, business realised it would have to provide employer balance to these arguments,” he says. The matter garnered greater attention during the ANC’s Polokwane conference as labour put its weight behind then presidential candidate Jacob Zuma. Accordingly, labour broking was referenced in the political party’s 2009 Election Manifesto: “In order to avoid exploitation of workers and ensure decent work for all workers as well as to protect the employment relationship, introduce laws to regulate contract work, subcontracting and outsourcing, address the problem of labour broking and prohibit certain abusive practices”. In May, the ANC’s national spokesperson Jesse Duarte reiterated its stance: “In line with its 2009 Election Manifesto, the ANC would like to set the record straight on its position regarding labour brokers. In order to avoid exploitation of workers, ensuring decent work for all workers as well as protecting the employment relationship, the ANC government will introduce laws to regulate contract work, subcontracting and outsourcing, address the problem of labour broking and prohibit certain abusive practices.” A month later, Labour Minister Membathisi Mdladlana said in his budget speech before parliament that it was clear that the first issue that the department would have to clarify in “taking forward the decent work agenda is how the country deals with temporary employment services”. At the time of writing, Nedlac was preparing a position paper for discussion on the matter. At the time of writing, this court had not yet issued its decision on this matter.

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