CONSTRUCTIONAL ENGINEERING ASSOCIATION – LABOUR BROKING DIVISION (CEA - LBD)

1. CONSTRUCTIONAL ENGINEERING ASSOCIATION – LABOUR BROKING DIVISION (CEA - LBD)

2. LABOUR RELATIONS AMENDMENT BILL BASIC CONDITIONS OF EMPLOYMENT AMENDMENT BILLSubmission to the Parliamentary Portfolio Committee on Labour(31 July 2012)

3. PRESENTED BY: ADVOCATE MSUTHU MATSHANI, ACCOMPANIED BY KEVIN COWLEY

4. WHO ARE WE? • The Constructional Engineering Association (CEA) was established in 1949; • It is the oldest, and one of the largest of SEIFSA’s 49 affiliates; • SEIFSA is one of the largest Employer Associations in the country ; • SEIFSA is party to the MEIBC Main Agreement; • Representing 2 500 affiliated member employers; • 360 000 employees in the metal manufacturing, civil construction, fabrication; and steel production; • The CEA-LBD is the Labour Broking division of the CEA; • The CEA-LBD is a founding Association of CAPES.

5. EXECUTIVE SUMMARY: • Fully align ourselves with the submission of CAPES, and all its associates, including BUSA. • The CEA LBD believe that: • reduction of unemployment through job creation and economic stimulation is key to the future growth of RSA; • it is required to create and retain jobs to address poverty and inequality; • it is required to address abusive practices across all sectors of society, which excludes those who do not enjoy full protection of the law; • it is imperative to promote conditions that will lead to sustainable enterprises and promotion of decent and productive work; • labour market flexibility is the future of the changing global world of work. • In pursuit of the points above, we believe that progressive policy choices are available.

6. UNINTENDED CONSEQUENCES: • Increment in unemployment levels (youth); • Direct increase to the cost of employment; • False expectations; • Re-organisation of work; • Dispute resolution; • Workplace conflict; • Instability and uncertainty; • Disinvestment; • Administrative burdens; • Legal complexities.

7. FALLACIES ABOUT LABOUR BROKERS: • Lack of Training; • contributes R450 million in skills levies per annum • 34% of all learnerships in RSA in 2005 – 2010 • Evasion of Labour Laws & non-compliance; • Only 9% of all referrals involve Labour Brokers • Rampant Exploitation; • 30% temporary to permanent in the first year; 40% in the second year • Lack of contribution to the economy; • R260 million per annum paid in terms of taxes

8. FALLACIES ABOUT LABOUR BROKERS: • Overcharging of Employees; • Non-provision of Benefits; • Lower rates of pay; (see slides)

11. Mashudu Mashudu Reuben Ramukhesa Ramukhesa 2000 Matriculated – no tertiary education 2000-2001 Seeking employment by myself 2002 Temp employment with “Drivers and More” 2002 – June 2003 Temp General Worker June 2003 Temp Supervisor - South African Breweries June 2003-May 2004 Joined Transman - Temp Site Supervisor: Enterprise Foods June 2005-December 2006 Transman : Temp Site Supervisor: UPN December 2006 Transman : Perm Operations Controller 1 April 2007 Transman : Transferred to Pretoria, on my request – Perm Operations Controller: UPN 16 March 2008 Transman : Transferred to Isando: Perm Operations Controller 16 May 2008 Transman : Promoted : Perm Senior Operations Controller 1 February 2010 Transman : Promoted : Perm Sales Consultant, 420 Placed Staff March 2010 Transman : Promoted : Perm Business Development Officer November 2011 Transman : Awarded - Best Business Development Officer 2011 1 November 2011 Transman : Promoted : Perm Senior Business Development Officer January 2012 Transman : Promoted : Perm Key Accounts Manager. Third level management, 470 Placed Staff

12. SUMMARY: • Current laws and regulations sufficient; • Improve enforcement, monitoring, and inspectorate; • Support the registration of TES industry; • Support the notion of co-regulation; • 6 months period; • Deeming provision / joint and several liability.

13. THANK YOU