State pays R140m to labour brokers
Government departments spent more than R140 million to pay labour brokers in the 2008/2009 financial year, a DA survey has shown.
Nine of the 39 departments have admitted in response to questions posed by the DA that they had used labour brokers.
The government’s use of these services is likely to put it on a collision course with Cosatu, which wants a ban on the industry to curb exploitation of temporary workers.
The federation has found an ally in Labour Minister Membathisi Mdladlana, who has likened the practice to human trafficking and selling workers’ labour to the highest bidder.
According to the preliminary figures, departments spent hundreds of rands a day per worker. As an example, the Justice Department paid an average of R338 000 for one worker, transport paid R140 000 and agriculture paid R169 000.
It is estimated that 360 000 people are engaged through labour brokers nationwide.
The departments said they used the services of labour brokers to ensure the required skills were sourced when needed, to avoid compromising projects. Mdladlana last week told Parliament he intended to amend labour laws to increase regulation in the sector.
“The constitution spoke of the regulation between employer and employee. But with labour brokers the client is the one who fires the workers, and not the broker, but the broker is the employer,” he said.
Mdladlana’s spokesman, Page Boikanyo, would not comment on the matter as it was still a subject of parliamentary processes.
Cosatu president Sdumo Dlamini said the use of labour brokers by departments bordered on fraud because government employees were either getting kick-backs or owned these labour broking firms.
“The government should be taking a lead in dealing with the issue of labour brokers and Cosatu is hoping that by next year the issue of labour broking will be history,” he said.
Debbie Lieberthal, the outspoken owner of Umkhonto Labour Holding, said the proposed ban on the industry would cripple the economy.
“This industry helps especially when there is a temporary vacancy brought about by issues beyond the control of the employer,” she said.
Lieberthal acknowledged, however, that there were some rotten potatoes who were using loopholes to abuse workers.
“There should be rules to ensure proper co-ordination of regulation,”she said
Health Department spokesman Fidel Hadebe said the department was monitoring the debate with keen interest. “We’re affected by skills shortages, particularly in nursing, but we don’t want to be associated with parties that may undermine nurses’ rights.”
The Ministry of Communications would not comment, citing pending cabinet discussions while the National Treasury said it had too short notice.
The National Union of Metalworkers of SA on Tuesday called on Parliament to outlaw brokers. “We call on the portfolio committee on labour to speedily outlaw labour brokers in line with the dominant view expressed by the workers and the ANC’s 52nd national conference in Polokwane,” it said.
The union applauded Minister of Water and Environmental Affairs Buyelwa Sonjica and Minister of Human Settlements Tokyo Sexwale for phasing out labour brokers from their departments.
“We call on other ministers and government departments to follow this revolutionary and exemplary decision set out by the two ministers.”
The decision should be understood within the context of the ANC alliance’s commitments to accelerate the creation of decent work and sustainable livelihoods, the union said.
It agreed with Dlamini that providing decent jobs to millions of workers was “incompatible” with the existence of brokers.
“This view we are prepared to advance and defend through popular protests in the streets,” it added.