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Bills will lead to more job losses

NO GO: Vanessa Phala
NO GO: Vanessa Phala

THERE might be even more job losses in store if the government gets its way and passes controversial amendments to labour legislation.

Business Unity SA (Busa) executive director of social policy Vanessa Phala told the portfolio committee on labour yesterday that at least 215,150 jobs would be lost as a result of the amendments.

She was speaking on the last day of public hearings on the Basic Conditions of Employment Amendment Bill and the Labour Relations Amendment Bill.

"The amendments as we have them will not be able to take us to meet the targets we have set ourselves in terms of job creation."

She said this was largely as a result of the amendments regarding employers being forced to keep part-time and labour-brokered employees after six months.

They would then be entitled to the same pay and benefits as permanently employed counterparts.

"That will mean small businesses will have to put systems in place to take care of all the requirements of the law and also put in place a very strong legal component that will be able to interpret and understand what these requirements are.

"Some of these amendments are legally impossible to implement and understand. Small businesses create jobs, we are making it difficult for them," said Phala.

The amendment giving the minister the right to prescribe an across the board minimum wage increase has also been rejected by Busa.

Currently the minister only has the power to dictate the minimum wage.

"If you give the minister power to determine actual rates, what is the use of collective bargaining. It will actually weaken collective bargaining, and that goes against what our Constitution says."

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