‘Labour law amendments threaten global competitiveness’

The proposed changes to the country’s labour laws could have serious repercussions for business, especially in the transport sector, said recruitment specialist Ashleigh Young, chief executive officer of TransAuto Recruitment. “We rely on temporary labour in the transport industry and if the laws compel one to engage staff on a permanent basis, I cannot see how we could also have a permanent pool of temporary drivers, who fill in when needed, often on a daily basis,” he said. Young, whose company specialises in fleet management, transport, logistics and automotive recruitment, said recruitment companies had turned to labour brokers in a bid to escape the rigid existing labour regulations. In terms of the proposed changes, labour brokers would be abolished. “The laws would have huge impact on the transport industry,” he said. Labour consultant Byron Xypteras warned that corporate South Africa could face heavy fines or imprisonment if proposed changes to the country’s labour laws were passed. He told business leaders at a Johannesburg Chamber of Commerce and Industry breakfast last week that the Labour Law Amendment Bills could also make South Africa less competitive in the global arena. The Bills call for a ban on labour brokers, compel staff to be engaged on a permanent basis, with similar benefits for temporary and permanent staff, and require all businesses (large and small) to report vacancies and appointments to the Labour Director-General. Failure to do so could result in a minimum R10 000 fine or up to 12 months in prison. Keith Brebnor, the chief executive of the Chamber, said business was worried about the proposed changes. In a statement, Business Unity South Africa (Busa) said the amendments had a serious potential to aggravate rather than alleviate unemployment. “Our plea as business is therefore that South Africa should not allow bureaucratic limitations to hamper job creation and devising flexible responses to the unemployment challenge.”