Changes to labour law worry business
BY PAUL VECCHIATTO. Published: 2012/07/26 07:09:49 AM.
BUSINESS Unity SA (Busa) expressed its surprise yesterday that the Cabinet had approved the draft amendments to the Labour Relations Act and Basic Conditions of Employment Act, before differences between commerce and organised labour had been settled at the National Economic Development and Labour Council (Nedlac).
Speaking on the sidelines of hearings by Parliament’s portfolio committee on labour, Busa’s executive director for social policy Vanessa Phala said there was still a wide gulf between business and labour on the raft of changes to the two laws.
“We are very concerned because we have identified more than 20 areas where there is at least 70% disagreement in the two bills,” she said.
Ms Phala said organised business would have preferred to have some commonality with labour and the government on the proposed changes at Nedlac, rather than in Parliament.
She called for a proper impact assessment on employment to be conducted. She said one proposed change to the Labour Relations Act, that temporary workers had to be made permanent after a maximum period of six months and receive salaries and benefits equal to long-serving staff would mean that companies would hire fewer temporary workers.
“We are concerned that the draft changes will lead to greater unemployment,” she said.
Another amendment that would raise the cost of doing business was the possible proliferation of trade unions should minority unions be granted the same rights as a majority union.
Under the present law, a majority union is measured by having 50% plus one of a company’s workforce. The amendment proposes that the labour commissioner has discretion to grant majority rights to a union.
“If this change goes through, then we will see an increase in the number of unions, all demanding majority rights. This could also lead to an increase of intimidation and violence in the workplace,” she said.
In its presentation, Busa said that SA has about 13-million workers. Depending on the definition of part-time employees, between 6% and 10% were on a temporary basis. It said part-time employment was heavily biased towards smaller firms, in the numbers involved and the proportion of workers employed.
The pubic hearings continue next week.
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