Haniff Hoosen, the ID Spokesperson for Labour, has criticised the Tripartite Alliance’s ‘hot-headed, kneejerk response to the problems’ in the labour broking industry, saying ‘finding solutions to these problems requires cool heads.’

‘However, the labour abuses in the industry are serious enough to require drastic action,’ Mr Hoosen, who today unveiled the ID’s policy position on labour brokering, said.

The labour brokering industry generates revenues of approximately R26 billion a year and places around half a million employees annually.

Hoosen said the ID was ‘especially concerned about the increasing trend of companies using labour brokers to circumvent labour laws.

‘The current state of affairs is proof that self-regulation, as espoused by the DA and Cope, does not work. Many labour brokers have found a way to beat the system and they will continue to do so for their own best interests,’ said Hoosen.

The ID was ‘also not in support of a total ban on labour brokers. Instead, we must find a way in which we can harness the industry’s considerable capacity in order to create decent jobs for our people.

‘The only way forward is for the Labour Department to draft regulations to regulate the industry,’ Hoosen said.
‘There is therefore an urgent need for legislation to spell out more clearly the interpretation of “temporary work” and to place a time limit on “temporary work”.

‘Labour brokers should also be paid a consultancy fee, rather than be classified as employers,’ said Hoosen.

The ID Spokesperson has recommended changing the current legislation, Section 198 (2) of which states that -

“a person whose services have been procured for or provided to a client by a temporary employment service is the employee of that temporary employment service, and the temporary employment service is that person's employer.”

to -

…“a person whose services have been procured for or provided to a client by a temporary employment service is the employee of the client and not the temporary employment service.”


‘This will contribute to the creation of more decent jobs, with labour brokers making a more significant contribution towards addressing the high rate of unemployment,’ Hoosen said.

‘As a result, instead of generating their revenues from sweat equity, labour brokers will make money from finding people jobs.’

Hoosen said ‘it should also be remembered that many of these workers rights abuses have taken place as a result of the Labour Department not fulfilling its enforcement mandate.

‘The ID is of the view that the state and not employers or employer bodies, have an obligation to protect the rights of workers and the Department of Labour must therefore beef up its enforcement capacity so that regulations that are passed are effectively enforced,’ said Hoosen.

‘The Minister should also establish a Regulatory Council to which all labour brokers/recruitment agencies must apply for annual accreditation.

‘In addition, brokers should be required to subscribe to a Code of Conduct, while the Regulatory Council must be tasked with ensuring that the Industry/Brokers/Agencies comply with the relevant Labour Legislation,’ Hoosen said.

For media enquiries, please call Haniff Hoosen on 084 200 0460