Att: the Editor – Business Day
E-Mail: busday@bdfm.co.za
YOUR EDITION FRIDAY 18^TH SEPTEMBER 2015

It is all very well for the critics to come forward to say that the study was not extensive enough and that it had taken into account the statistics used by government from the Statistics SA Survey.  However, one needs to look at the facts on the ground in order to see how it affects real people and how the changes in the law have translated into job losses.

I as a practicing labour lawyer have noted numerous problems arising out of the amendments.  Many small company’s have merely terminated the employment of individuals who were placed by labour brokers and have not created permanent jobs.  I will hear from the critics telling me that the evidence is anecdotal and not extensive enough but for each individual who has been dismissed or retrenched they are not interested in surveys they are merely interested in trying to gain worthwhile employment of some nature.  When one doesn’t have a job you don’t question whether you’ve been placed there by a labour broker or some other entity.  The devastation experienced by those who have been told to leave is immense.  I have never experienced such a fall out even as compared to the collapse of the world economy in 2008.  My clients, who are admittedly small businesses, are those who are expected to create jobs and not lose jobs.  When questioning the management of these small firms they all allude to the fact that they can’t take the risk of employing people on a permanent basis despite the fact that they do actually have a need for the work to be done.  Many of these small firms are not investing in their own businesses and an equal amount are trying their utmost to mechanise and to double up the work for those that are in permanent employ.

The horrendous impression created by the labour amendments in April 2015 has led to a complete reluctance to create new jobs.  It is no argument to state that this is an unintended consequence of the amendments as many of us had warned government about the possible reactions from the employers.  When a country has almost 40% unemployment it doesn’t help to create more and more onerous conditions and regulations in the labour law environment.

One only needs to look at job creation throughout the world to notice that atypical employment is gaining momentum and that there is a reticence of employers to employ first time entrants.  We can see in other jurisdictions that employers have relied on labour market intermediaries.  These intermediaries invariably are labour brokers.  Once a person who has gained a job through a labour broker is able to gain experience and know how, that person becomes more employable and at least able to enter the job market.  This is not the time in South Africa’s history to start exploring on how to make things easier for the trade union movement.

Michael Bagraim