THERE are contesting views on whether or not banning labour brokers will result in job losses.
THERE are contesting views on whether or not banning labour brokers will result in job losses.
For the past year, Cosatu has called on the government to ban labour brokers, claiming they exploit workers. Last week, over 100000 people marched in Johannesburg against Gauteng's e-tolling system and labour brokers.
But Adcorp's labour economist Loan Sharp said says a ban of labour brokers would result in job losses.
"Employment would drop by 1.2-million if labour brokers were banned. Permanent and temporary workers are no substitute. If there is a ban on labour brokers or temporary workers, they cannot just be employed permanently because they are only used on a seasonal basis or weekends," says Sharp.
"Cosatu says all these temporary workers would be permanent. But that is not true because they do not work on a permanent basis."
According to Adcorp, over 1-million people in South Africa are employed through labour brokers and make 7.5% of the total workforce. Internally, labour brokers employ 22000 people.
The construction sector has the highest number of non-permanent staff at 59.2%. They are followed by the wholesale and retail trade at 42.8%; transport, storage and communication at 39.7%; and finance, insurance and real estate at 31.1%.
But Cosatu spokesman Patrick Craven rejects this view and says there will not be any job losses if labour brokers are banned.
"We believe it is a form of exploitation. It treats workers as commodities who do not have any kind of secured employment. They are simply hired out to companies when they need workers. (They are) generally low-paid with no benefits like medical aid and provident fund.
"Above all, it is the lack of security. They do not know whether they will have any work or income (in days or weeks to come).
"It is part of a general process of the casualisation of workers which is not always organised by labour brokers, but they are the main drivers of that process."
Asked about the people who are already employed by labour brokers, Craven says: "We have always argued that labour brokers do not create jobs. The work that those workers do will still have to be done. The only difference would be that the employer will be where they actually work and not the labour broker.
"So there should not be any job losses. And we contest this figure. Because the firms that have been hiring workers from labour brokers will not suddenly not need those workers.
"It is a myth that labour brokers create jobs, (and that) if they are banned, a lot of jobs will be lost," Craven adds.
It's nothing but a myth
THERE are contesting views on whether or not banning labour brokers will result in job losses.
THERE are contesting views on whether or not banning labour brokers will result in job losses.
For the past year, Cosatu has called on the government to ban labour brokers, claiming they exploit workers. Last week, over 100000 people marched in Johannesburg against Gauteng's e-tolling system and labour brokers.
But Adcorp's labour economist Loan Sharp said says a ban of labour brokers would result in job losses.
"Employment would drop by 1.2-million if labour brokers were banned. Permanent and temporary workers are no substitute. If there is a ban on labour brokers or temporary workers, they cannot just be employed permanently because they are only used on a seasonal basis or weekends," says Sharp.
"Cosatu says all these temporary workers would be permanent. But that is not true because they do not work on a permanent basis."
According to Adcorp, over 1-million people in South Africa are employed through labour brokers and make 7.5% of the total workforce. Internally, labour brokers employ 22000 people.
The construction sector has the highest number of non-permanent staff at 59.2%. They are followed by the wholesale and retail trade at 42.8%; transport, storage and communication at 39.7%; and finance, insurance and real estate at 31.1%.
But Cosatu spokesman Patrick Craven rejects this view and says there will not be any job losses if labour brokers are banned.
"We believe it is a form of exploitation. It treats workers as commodities who do not have any kind of secured employment. They are simply hired out to companies when they need workers. (They are) generally low-paid with no benefits like medical aid and provident fund.
"Above all, it is the lack of security. They do not know whether they will have any work or income (in days or weeks to come).
"It is part of a general process of the casualisation of workers which is not always organised by labour brokers, but they are the main drivers of that process."
Asked about the people who are already employed by labour brokers, Craven says: "We have always argued that labour brokers do not create jobs. The work that those workers do will still have to be done. The only difference would be that the employer will be where they actually work and not the labour broker.
"So there should not be any job losses. And we contest this figure. Because the firms that have been hiring workers from labour brokers will not suddenly not need those workers.
"It is a myth that labour brokers create jobs, (and that) if they are banned, a lot of jobs will be lost," Craven adds.
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