The article is
misleading.
 
On Monday as
COSATU , we released first Newspaper article [SOWETAN, Page 11]titled ‘Living 
Wage is the main aim’ and said
eloquently;
 
‘Labour Brokers must be banned as there is no way that
Workers outside standard employment contracts can fight for a living wage’.
 

 

________________________________
 From: VC <[email protected]>
To: [email protected] 
Sent: Wednesday, August 1, 2012 10:43 PM
Subject: [YCLSA Discussion] COSATU - gives up on ban on labour brokers
  





Cosatu gives up on ban on labour brokers — for now
  
  
 Paul Vecchiatto, Business Day, Johannesburg, 1 August 2012 
  
THE Congress of South African Trade Unions (Cosatu) admitted
        it had lost the battle to have labour brokers banned, but
        reminded African
        National Congress (ANC) MPs in Parliament yesterday about its
        agreement with
        the party over changes to the Labour Relations Amendment Bill. 
  
In March Cosatu embarked on organised national protests
        against labour brokers and toll roads in Gauteng. This led to a
        meeting between
        the union federation and the ANC at the party’s Luthuli House
        headquarters that
        reportedly resolved their differences. 
  
"In relation to labour broking we were not successful
        in getting agreement for a complete and full ban," Cosatu
        parliamentary
        officer Prakashnee Govender told Parliament’s labour committee
        yesterday. 
  
The committee is conducting hearings on the Labour Relations
        Amendment Bill and the Basic Conditions of Employment Amendment
        Bill. Business
        bodies told MPs last week the draft legislation was a
        disincentive to
        investment and job creation as it made it hard for employers to
        hire temporary
        workers. 
  
Ms Govender firmly reminded the ANC MPs in the committee
        that agreements had been reached on three issues, besides labour
        broking. 
  
The first was to address contract issues between labour
        brokers and their clients, which would ensure that the employers
        would assume
        full responsibility for workers employed in positions not
        temporary in nature. 
  
There was agreement with the ANC to delete from the draft
        bills provisions affecting the right to strike and picket and
        those imposing a
        new form of probation on new workers, Ms Govender said. The ANC
        also agreed to
        have sections providing for the expansion of essential services
        redrafted. 
  
Ms Govender was adamant that Cosatu’s battle against labour
        broking was not over. 
  
"We have a national congress coming up, at which we
        will have to report to our members on our failure to ban labour
        brokers, but it
        remains an objective of Cosatu to see them banned," she said
        after making
        representations to the committee. 
  
Democratic Alliance MP Andricus van der Westhuizen expressed
        concern that the ANC and Cosatu had made a deal. 
  
"This deal was made after the National Economic
        Development and Labour Council had agreed to the amendments," he
        said. 
  
Ms Govender replied that Business Unity South Africa had
        also had a meeting with the ANC. "However, we were less sneaky
        about
        it," she said. 
  
Msuthu Matshani, deputy chairman for labour broking at the
        Construction Engineering Association, told the committee that
        for every R100
        paid by a client to a labour broker, 36% went to statutory
        deductions such as
        the Unemployment Insurance Fund, Skills Development Levy and
        Workmen’s
        Compensation. 
  
He said 5% was the industry standard administration charge
        for placing a worker, another 11%-13% was for recruitment,
        selection and
        placement, and 10% was the labour broker’s profit — leaving the
        worker with
        about R30 from every R100 paid. 
  
Mr Matshani said labour brokers often had to carry the cost
        of paying their workers when their clients had not yet paid them
        for their
        services. 
  
"Even public sector companies will sometimes only pay
        two or three months after the work has been done," he said. 
  
Angela Dick, CEO of labour broker Transman, said brokers
        often had to carry the cost of ensuring workers got to work and
        home safely and
        on time. "My company has a fleet of 104 vehicles just for this
        purpose." 
  
[email protected] 
 
  
From: http://www.businessday.co.za/articles/Content.aspx?id=177426 
  
 
 
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