Download government call for ban on temp employment threatens 500 000

Call for Ban on Temp Employment Services Threatens 500 000 Workers
The call for an outright ban on the temporary employment services industry (TES) threatens the
livelihood of some 500 000 workers and their families, a loss of a R26bn contribution per annum to
the GDP, the immediate cessation of around 10 000 learnerships currently facilitated by TES, dire
repercussions on the competitiveness of local companies and an outflow of foreign direct
investment. This at a time when South Africa is facing one of the worst economic crises in years
and when job creation is critical on the country’s economic and social agendas.
While some Government members and Unions are calling for the ban on labour brokers, largely
precipitated by the actions of rogue TES providers, John Botha, the Chief Operations Officer of the
Confederation of Associations in the Private Employment Sector (CAPES), believes that the current
labour legislation adequately addresses the use of TES/labour brokers and that it is the lack of
effective law enforcement on the part of the Department of Labour that is at the core of the issue resolving this will be in the best interests of the social and economic welfare of the country, as
opposed to an outright ban.
“CAPES, on behalf of our stakeholders tabled the issues around TES regulation at NEDLAC as early
as 2005 and despite the business constituency making strong recommendations and even tabling
draft regulations on a Private Employment Agency Board, there has been very little progress. Now
suddenly there is an unsubstantiated call for an outright ban on temporary employment from the
Minister of Labour which poses a huge concern for us. This is a critical issue that requires serious,
well-considered resolution as it firstly negatively impacts millions of lives dependent on the salaries
of the affected temporary workers and secondly, temporary labour is critical to the continued
competitive existence of all industries that experience cyclical peaks and troughs.
It would be
entirely reckless and irresponsible to use this issue for political leverage,” says Botha.
The call for an outright ban is indicative of a lack of understanding of how crucial the TES industry is
in regard to driving economic growth, employment creation, skills development and poverty
reduction. Rather than banning TES, the focus should be on enforcing the existing, excellent
legislation South Africa has in place in respect of TES.
“Even in the absence of a statutory right to regulate and given the Department of Labour’s failure to
regulate TES, as an industry we have not been idly standing by. The industry has voluntarily opted
for self-regulation to ensure fair and equitable practices by TES who employ the majority of
temporary assignees in South Africa via CAPES and its member associations, APSO (Association of
Personnel Service Organisations), CEA (Constructional Engineering Association), ANASA
(Association of Nursing Agencies of South Africa) and ITA (Information Technology Association).
The industry has been evolving and upgrading with an industry wide certification institute to be
launched shortly which will build on the previous professional education programmes to drive
professionalism and continuous professional development within the industry. We have covered
considerable ground in migrating and consolidating existing funds in a central industry pension fund
for those temporary assignees who do not fall under established bargaining councils. We continue
to establish various collective arrangements with unions to demonstrate that TES recognises and
underwrites the right to freedom of association and collective bargaining. The reality is that we need
to forge a new and innovative arrangement in respect of unionisation, given that the traditional model
of the unions is not easily applied to the modern workplace,” explains Botha.
“There is an urgent need to find ways of reinforcing more and better jobs and modernising labour
markets to increase adaptability and employment. “Locally, our Government and unions are placing
the focus on ‘job security’ where the rest of the world has moved to ‘employment security’ - to have
security of employment by virtue of having the right skills, at the right time. Even the International
Confederation of Trade Unions has entered into a collective agreement with the TES industry in the
European Union in recognition of the new modern world of work and how to regulate it according to
a new dispensation so that there is a real balance between economic growth and employment
justice.
The Department of Labour is struggling to enforce the numerous provisions on TES in the Labour
Relations Act, the Employment Equity Act, the Skills Development Act, the BCEA and related Acts.
In light of this, CAPES is engaging with a view to establishing a statutory Private Employment
Agency Board that is representative of the social partners and which would licence, investigate and
de-register non-compliant TES.
Statements by union leaders that the TES industry is liable for the lack of decent work in South
Africa as prescribed by the International Labour Organisation are unfounded. The ILO views decent
work as having three primary pillars, most of which is already in place in SA and what is not is being
addressed.

Employment standards which are the minimum bedrock of legislation to guarantee minimum
protections

Employment security, dispute resolution procedures and union rights – the need to create
and protect employment

Social security and retirement reform – Government plans to have a National Social Security
Fund in 2010 as well as an extended social net of benefits
CAPES endorses the notion of decent work as conceptualised by the ILO as it promotes:

A fair income and access to benefits

Job security

Social security

Freedom of association

Healthy and safe work environment
“The TES industry only provides around 4% of the economically active workforce in SA. There are
other industries that should perhaps be under the spotlight. TES pays at the very least the minimum
agreed Bargaining Council rates and employment terms and complies with sectoral determinations
or the BCEA. These terms have been agreed by labour unions. ‘Decent work’ is a fluid concept and
must take into consideration the economic and social environment of the country.”
About TES
The Temporary Employment Services (TES) industry accounts for around 4% of the economically
active population in South Africa and is a small but important contributor to various national strategic
initiatives of both the government and the private sector. In Rand terms, the industry is a R26 billion
plus industry providing jobs for around 500 000 assignees on any day. Of these assignees
approximately 15% - 32% obtain permanent employment (depending on job-type) and TES therefore
acts as a channel for the unemployed, under-employed and outsiders (people who find it difficult to
obtain employment such as youth and the aged) into the formal labour market.
The new world of work with its changing technology, short product life cycles and skills shortages, as
well as the impact of globalization on competitiveness, means that life-long employment is no longer
a reality. Rather, the TES industry focuses on employment security rather than job security. In
addition, it is attempting to balance employment flexibility with benefits security.
Temporary assignees, given the nature of the TES industry, are continually exposed to new
technologies, different industries and various positions and this contributes towards their
marketability and employment security.
The TES industry also engages in learnerships,
apprenticeships and is one of the largest contributors to the skills development levy in South Africa
via the Services SETA.
Ends…
Issued by:
Teresa Settas Communications
Teresa Settas
(011) 894 2767 or [email protected]
On behalf of:
CAPES
John Botha – COO
082 457 0000 or [email protected]
Date:
19 February 2009