The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

1. Introduction and Definition of Labour Brokerage

Our held view is that Labour Brokers are new forms of slavery wherein an individual or company owns the labour-power of workers and sells that labour-power on their behalf to capitalists (employers). With the high rate of unemployment and the insistence by the capitalists' class for a flexible labour market, both workers remain vulnerable and bosses rely on these slave masters to get work on the one hand, and to be free of the legal requirements that govern employment relations on the other hand.

We must say from the onset that we advocate for the complete outlawing of Labour Brokers and will try and persuade you on the following factors:

· Labour Brokers undermine workers rights and some of the rights contained in the Bill of Rights;

· They do not guarantee Job Security and takes away a share of workers' wages (thus concentrating this share as their profits)

· Workers are kept on temporary work for as long as possible, especially in the retail industry

· It would be more costly to police labour brokers and prosecute them, and thus, we believe outlawing them is the option.

· They do not contribute to the skills development and worker progression, and thus undermines the Skills Development Act.

We define Labour Brokers as follows:

· Those who procure labour on behalf of an employer, and receive a once-off payment from the employer for such service, and the contract remain between the employer and the employee.

· Those who employ workers and avail them to a "client" and take a share of the workers wage as a fee for having secured employment. The relationship here is between the labour broker and the worker, whilst the "client" is freed from all forms of commitments to the law.

We are completely opposed to the second form of labour brokerage as they constitute the worst form of employment relations, have undermined the Labour Relations Act, Basic Conditions of Employment Act and even the Constitution. Some of these have treated workers with utter disrespect and have subjected them to the most of inhuman conditions. They have created a class of "right less" workers, all to the convenience of employers.

Even though the LRA (S. 198(4)) indicates that both the "client" and the labour broker are jointly liable for any relief that may be sought in terms of the Act, this has been undermined as workers' contracts in many instances are signed between the workers and the broker, and thus exonerating the capitalists (employer) on any contravention of labour laws.

An employment relationship directly between an employer and an employee means the following:

· Job Security and greater fair labour practice;

· Better benefits, including Pension/Provident Fund and UIF;

· Better and easier trade-union organization;

Some of these factors do not exist on employment relationship between workers and labour brokers.

2. Overview of Labour Brokers in the SA Economy.

There is little if no information that is available even with the Department of Labour on the extent of the presence of labour brokers and their share of appropriation of labour in our economy. Although they are a fact of the labour market, and are required to register with relevant authorities, most of them choose not to do so.

This means that even if we are to regulate labour brokers, the extent of monitoring their compliance may be made difficult given this factor. In a research done by Naledi, using statements by Labour Brokers, concludes (based on statistics of the Labour Force Survey) that there are 700 000 workers employed by labour brokers in SA (about 4% of the current labour force.

In reaction to continued pressures from the trade-unions and various working class organizations, labour brokers have claimed that they "contribute more than R26bn into the economy" and are responsible for more than 10 000 Learnerships. We are yet to know what share of this R26bn belongs to workers, but the reality is that if direct employment was allowed, more money will be made available to the 700 000 workers instead of it being concentrated in the hands of few labour brokers.

The current economic crisis is as a result of stagnant real income to workers, with their share of national income being severely indebted and thus affecting the purchasing power in the economy. Circulating money in more households will mean that more households capacity to spend will increase, and thus, directly stimulate the economy. The outlawing of our economy may represent a temporary setback as capitalist would have to adjust to the new conditions of employment, and ready themselves for a permanent labour regime, but the benefits for our economy would be greater than those of having labour brokers.

3. Proposals from YCL on Wayforward

We hold a strong view that Labour Brokers should be banned and no person should be allowed to own the labour power of others. We are aware of the legal and constitutional implications of such a process, but we believe that the provision in the constitution that everyone has the right to choose their employer undermines/or is ignorant of the socio-economic conditions that workers find themselves, and thus, makes them vulnerable.

This will obviously not be done immediately. We however suggest that the following be done within the next few years, with the ultimate objective of outlawing the labour brokers.

(a) There should be a limit on the period in which workers are allowed to work as temporary/or under a labour broker. This means that after a particular period employers should take over the contract between the labour broker and the worker. The terms of such a period can be introduced by government regulation or be subjected to a collective bargaining process between unions and workers.

(b) Enforce the stipulation that both the "client" and the labour brokers are jointly liable so that the employer must also incur the cost of unfair labour practice. This is mainly because in many instance, it is the employer who contravenes with labour laws and pass this on to the labour broker.

(c) We must ban all forms of labour brokers in vulnerable sectors or where there has been a minimum wage set. This includes mining, agriculture, private security and domestic work. We must also introduce regulations to ensure more involvement of workers in the determination of the terms of contracts, and even, where possible, go to the extent of introducing a framework guiding contractual agreements between workers and labour brokers.

(d) Immediate regulations can be introduced to ban labour broker usage in all local government municipalities, public education, health and other institutions (court, sports facilities, etc), State-Owned Enterprises and government departments. The notion that there are core and non-core workers is nonsensical. How can it be core, for instance, for Wits University to provide education, and regard the cleanliness', security, transport and catering of the Wits community as non-core? We also propose that companies that procure services from government departments should be forced not to procure labour through labour brokers, but directly with workers. This will go a long way in ensuring that we ultimately phase out labour brokers.

(e) We also propose that in the immediate, regulations should be introduced or enforced (and contravention be heavily punished, including closing down companies that contravenes) relating to management of the relationship between the labour brokers and workers:

i) Heavy and clearly stipulated punishment for those who contravenes existing regulations;

ii) Contribution by Labour Brokers to the Skills Development Levy and clear skills development plans;

iii) Contribution to the UIF, and introduction of Pension Fund and Provident Fund; and

iv) Allowing workers to recruit, and prosecution of companies that dismiss workers on the basis that they are trade-union members;