Banning labour brokers 'will lead to big job losses'

Kea' Modimoeng

Kea' Modimoeng

More than a million jobs will be lost if trade unions succeed in their attempt to influence legislation to ban labour brokers.

This is according to Richard Pike, the Adcorp Holdings chief executive, who yesterday slammed the approach of "generalising bad practices" committed by some agencies.

He said the amount of job losses would be so high that it will make the number of the economic recession retrenchments "insignificant".

Speaking in a radio debate with Cosatu spokesperson Patrick Craven yesterday, Pike said the employment services industry contributes billions of rands to the domestic economy, outperforming the agricultural sector.

He said the industry abides by labour laws from the International Labour Organisation and the guidelines of its mother body, the Confederation of Associations in the Private Employment Sector.

Pike also said the banning of labour brokers in Namibia resulted in 30 percent of all contractors losing their jobs.

"It is an absolute myth that we don't create jobs," he said.

On the other hand, Craven argued that the banning of labour brokers would not result in any job losses because companies would employ the workers directly.

"Our role as a trade union federation is to change a reality where workers are farmed out as commodities," said Craven.

He said Cosatu's stance against labour brokers is also fuelled by the fact that it restricts trade union activities in the workplace.