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DA: Statement by Andrew Louw, Democratic Alliance Shadow Minister of Labour, on Labour Brokers (20/10/2009)

20th October 2009

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In reply to a Democratic Alliance (DA) parliamentary question, the Department of Water and Environmental Affairs (DWEA) has become the latest national department to admit to making use of labour brokers. It joins the departments of Justice, Agriculture, Public Service and Administration, Social Development, Health, Transport, Communication and the Treasury in this regard. The DWEA used 211 people placed by labour brokers last year, at a cost of R18.7 million. The total amount spent by all departments on labour broking in 2008/09 to date is R142.5 million and a total of 721 people have been placed. A full breakdown follows in the table below this statement. Significantly, the Minister also stated that the department "views the current discussions around the use of labour brokers very seriously and has phased out this practice". This statement is problematic for three reasons:
• First, it suggests that the Minister is ignorant of the growing demand for labour brokering in his own department. The number of individuals placed by labour brokers in the DWEA increased by 131%, to 211 positions, in 2008/09. It has increased every year for the last three years, from 83 to 91 to 211.
• Second, the view expressed suggests that the Minister has conflated his personal political opinions with the objective public interest that is supposed to define his public office. Put another way, there is a debate on labour brokering at the moment, no decision to ban them has been taken, for the Minister to state as much suggests he has preempted the outcome of that debate, and is acting to appease political opposition to labour brokering from Cosatu and the ANC.
• Third, in much the same fashion as the entire debate on labour brokering has been defined, the Minister offers no considered explanation for this position. Why does he want to ban it? For example, various government departments have admitted that "Temporary Employment Services are used for short term project related work or replacing employees absent for extended periods such as maternity leave and sick leave." That is perfectly reasonable and understandable. If the DWEA is no longer using labour brokers, then what is the policy in this regard?
A myriad of carefully considered and well founded arguments have already been made as to why labour brokers are required - the fact that maternity leave creates the need for short term employees is just another one. The ANC and Cosatu needs to think twice on their calls to ban labour brokers - doing so would create a huge disincentive to employ women, since an employer would not be able to fill that position during the time at which she is by law entitled to maternity leave. More broadly it would have a profoundly negative effect on our economy. The DA has already released a policy proposal on industry self-regulation for labour brokers together with the Congress of the People (COPE). It is evident that much is at stake; the DA will be posing further parliamentary questions on gender equity and vacancy policy in the workplace to the DWEA. MEDIA ENQUIRIES: Andrew Louw, MP - 082 383 6914 Jo Lennox - 082 780 0242
Use of labour brokers in 2008/09 financial year
Department Number of individuals placed Staff percentage Amount spent
Justice and Constitutional Development 264 1.6 R 89,329,692
Water and Environmental Affairs 211 5 R 18,797,120
National Treasury 80 8.4 R 11,715,154
Agriculture, Forestry and Fisheries 62 2.28 R 10,575,000
Public Service and Administration 28 7.2 R 8,295,104
Social Development 55 8 R 1,765,231
Health 8 0.58 R 1,062,444
Communication 10 9 R 636,357
Transport 3 0.45 R 419,752
Total 721 R 142,595,854

1145. Mrs A T Lovemore (DA) to ask the Minister of Water and Environmental Affairs:
Whether her department uses temporary employment services and/or labour brokers; if so, (a) why, (b) how many positions have been filled by temporary employment services in the (i) 2006-07, (ii) 2007-08 and (iii) 2008-09 financial years, (c) what percentage of the total staff complement did temporary employment services contribute in each of these years and (d) how much money has been spent on temporary employment services in each year? NW1479E
REPLY:
(a) Yes, My Department does make use of the services of labour brokers from time to time to ensure that the required skills are sourced when needed in order not to compromise project construction. It should also be mentioned that the utilisation of labour brokers is the last resort when all other measures have failed to provide the required skills. The general policy regarding local labour recruitment is to establish a labour desk with a steering committee for each construction site. Local communities are strongly represented in these forums and they are relied upon to provide personnel, both skilled and unskilled in accordance with project requirements.

Furthermore, my Department views the current discussions around the use of labour brokers very seriously and has phased out this practice. The National Water Resources Infrastructure Branch is engaging with the Department of Public Works on developing alternative labour usage on its infrastructure projects, i.e. Expanded Public Works Programme.

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(b)
Financial Year Total personnel by labour broker (of the Total Workforce)
(b)(i) 2006 - 2007 83
(b)(ii) 2007 - 2008 91
(b)(iii) 2008 - 2009 211

(c)
Financial Year Total percentage of staff complement (of the Total Workforce)
2006 - 2007 4%
2007 - 2008 3%
2008 - 2009 5%

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(d)
Financial Year Total money spend on labour supplied through labour broker
2006 - 2007 R 9 211 033.96
2007 - 2008 R 13 569 619.17
2008 - 2009 R 18 797 120.40

 

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