CONSTRUCTIONAL ENGINEERING ASSOCIATION –

LABOUR BROKING DIVISION (CEA - LBD)

LABOUR RELATIONS AMENDMENT BILL BASIC CONDITIONS OF EMPLOYMENT AMENDMENT BILL

Submission to the Parliamentary Portfolio

Committee on Labour(31 July 2012)

PRESENTED BY:

ADVOCATE MSUTHU MATSHANI, ACCOMPANIED BY KEVIN COWLEY

WHO ARE WE?• The Constructional Engineering Association (CEA) was

established in 1949;• It is the oldest, and one of the largest of SEIFSA’s 49 affiliates; • SEIFSA is one of the largest Employer Associations in the

country ;• SEIFSA is party to the MEIBC Main Agreement;• Representing 2 500 affiliated member employers;• 360 000 employees in the metal manufacturing, civil

construction, fabrication; and steel production;• The CEA-LBD is the Labour Broking division of the CEA;• The CEA-LBD is a founding Association of CAPES.

EXECUTIVE SUMMARY:• Fully align ourselves with the submission of CAPES, and all

its associates, including BUSA.• The CEA LBD believe that:

– reduction of unemployment through job creation and economic stimulation is key to the future growth of RSA;

– it is required to create and retain jobs to address poverty and inequality;

– it is required to address abusive practices across all sectors of society, which excludes those who do not enjoy full protection of the law;

– it is imperative to promote conditions that will lead to sustainable enterprises and promotion of decent and productive work;

– labour market flexibility is the future of the changing global world of work.

• In pursuit of the points above, we believe that progressive policy choices are available.

UNINTENDED CONSEQUENCES:

• Increment in unemployment levels (youth);• Direct increase to the cost of employment;• False expectations;• Re-organisation of work;• Dispute resolution;• Workplace conflict;• Instability and uncertainty;• Disinvestment;• Administrative burdens;• Legal complexities.

FALLACIES ABOUT LABOUR BROKERS:

• Lack of Training;– contributes R450 million in skills levies per annum– 34% of all learnerships in RSA in 2005 – 2010

• Evasion of Labour Laws & non-compliance;– Only 9% of all referrals involve Labour Brokers

• Rampant Exploitation;– 30% temporary to permanent in the first year; 40% in

the second year

• Lack of contribution to the economy;– R260 million per annum paid in terms of taxes

FALLACIES ABOUT LABOUR BROKERS:

• Overcharging of Employees;• Non-provision of Benefits;• Lower rates of pay;

(see slides)

METAL AND ENGINEERING INDUSTRIES BARGAINING COUNCIL

NORMAL TIME CHARGE RATES, PER HOUR, EXCLUDING VAT

CATEGORY ROP AL SL LE BCL CBLPUB HOL

FRL DRLSEIF

SA

SUB TOT

UIF SDLCAPE

SCC

SUB TOT

P/

FUNDSPF

SUB TOT

A/ FEE

SUB TOT

S/

FEE

GRAND TOTAL

Unskilled General Worker

R 26.24

1.67 1.12 2.19 0.04 0.05 1.34 0.67 0.02 0.01 33.35 0.33 0.33 0.03 1.33 35.37 2.36 0.03 37.76 1.89 39.65 3.17 R 42.82

KEY TO COSTING TABLES:

ROP RATE OF PAY (HOURLY) MINIMUM RATE OF PAY AS STIPULATED BY THE METAL AND ENGINEERING INDUSTRIES BARGAINING COUNCIL

AL ANNUAL LEAVE 15 DAYS PER ANNUM

SL SICK LEAVE 10 WORKING DAYS PER ANNUM / 30 DAYS OVER A THREE YEAR CYCLE PERIOD

LE LEAVE ENHANCEMENT PAY 8.33% OF HOURLY RATE OF PAY

BCLBARGAINING COUNCIL LEVY

R1.72 PER EMPLOYEE PER WEEK AND SAME FOR EMPLOYER - MINIMUM PER COMPANY PER MONTH R175.00

CBLCOLLECTIVE BARGAINING LEVY

R185.00 PER MONTH BY EMPLOYERS WHO DO NOT BELONG TO A PARTY EMPLOYER ORGANISATION AND 1% OF WAGES BY EMPLOYEES WHO ARE NOT MEMBERS OF PARTY TRADE UNIONS

PUB HOL

PUBLIC HOLIDAY 12 DAYS PER ANNUM

FRLFAMILY RESPONSIBILITY LEAVE

6 DAYS PER ANNUM / 18 DAYS OVER A 3 YEAR CYCLE PERIOD

DRLDISPUTE RESOLUTION LEVY

R 0.62 PER WEEK FROM EMPLOYEE AND SAME FOR EMPLOYER

SEIFSATECHNOLOGICAL FUND LEVY

R1.29 PER EMPLOYEE PER MONTH

UIFUNEMPLOYMENT INSURANCE FUND

COSTED ON TOTAL OF WAGE AND BENEFITS

SDLSKILLS DEVELOPMENT LEVY

COSTED ON TOTAL OF WAGE AND BENEFITS

CAPESCAPES LEVY COSTED ON TOTAL OF WAGE AND BENEFITS

CCCOMPENSATION COMMISSIONER

COSTED ON TOTAL OF WAGE AND BENEFITS

P/FUND

PROVIDENT FUND COSTED ON ROP - RETIREMENT, DEATH, DISABILITY

SPF SICK PAY FUND 0.09% COMPULSORY FOR ALL STAFF

A/FEE ADMIN FEE PROCESSING OF WAGES, INVOICING, FINANCIAL FACILITY, BANK CHARGES, EFT TRANSFERS, STATUTORY RETURNS AND REPORTS

S/FEE SERVICE FEERECRUITMENT, SELECTION, PLACEMENT, MANAGEMENT OF STAFF, OPERATIONAL SUPPORT, STATUTORY OBLIGATIONS, RESEARCH, DEVELOPMENT, HR/IR SUPPORT

Copyright © 2012 TransmanThis work is copyright under the Berne Convention. In terms of the copyright Act 98 of 1978 no part of this work may be reproduced or transmitted in any form or by any means, presently known or that may be devised, electronic or mechanical, including photographing, recording or by any information storage and retrieval system, without permission in writing from the publishers.

BASIC CONDITIONS OF EMPLOYMENT ACT

NORMAL TIME CHARGE RATES, PER HOUR, EXCLUDING VAT

CATEGORY ROP AL SL

PUB

HOL

FRLSUB TOT

UIF SDL CAPES CC

SUB

TOT

A/

FEE

SUB

TOT

S/

FEE

GRAND TOTAL

Executive PA R 60.00 3.85 2.56 3.08 0.77 70.26 0.70 0.70 0.07 1.41 73.14 3.66 76.80 6.14 R 82.94

KEY TO COSTING TABLES:

ROP RATE OF PAY (HOURLY) AGREED RATE OF PAY

AL ANNUAL LEAVE 15 DAYS PER ANNUM

SL SICK LEAVE 10 WORKING DAYS PER ANNUM / 30 DAYS OVER A THREE YEAR CYCLE PERIOD

PUB HOL PUBLIC HOLIDAY 12 DAYS PER ANNUM

FRL FAMILY RESPONSIBILITY LEAVE 3 DAYS PER ANNUM

UIF UNEMPLOYMENT INSURANCE FUND COSTED ON TOTAL OF WAGE AND BENEFITS

SDL SKILLS DEVELOPMENT LEVY COSTED ON TOTAL OF WAGE AND BENEFITS

CAPES CAPES LEVY COSTED ON TOTAL OF WAGE AND BENEFITS

CC COMPENSATION COMMISSIONER COSTED ON TOTAL OF WAGE AND BENEFITS

A/FEE ADMIN FEEPROCESSING OF WAGES, INVOICING, FINANCIAL FACILITY, BANK CHARGES, EFT TRANSFERS, STATUTORY RETURNS AND REPORTS

S/FEE SERVICE FEERECRUITMENT, SELECTION, PLACEMENT, MANAGEMENT OF STAFF, OPERATIONAL SUPPORT, STATUTORY OBLIGATIONS, RESEARCH, DEVELOPMENT, HR/IR SUPPORT

Copyright © 2012 TransmanThis work is copyright under the Berne Convention. In terms of the copyright Act 98 of 1978 no part of this work may be reproduced or transmitted in any form or by any means, presently known or that may be devised, electronic or mechanical, including photographing, recording or by any information storage and retrieval system, without permission in writing from the publishers.

Mashudu Mashudu Reuben Ramukhesa

Ramukhesa2000 Matriculated – no tertiary education2000-2001 Seeking employment by myself2002 Temp employment with “Drivers and More”2002 – June 2003 Temp General WorkerJune 2003 Temp Supervisor - South African BreweriesJune 2003-May 2004 Joined Transman - Temp Site Supervisor: Enterprise

FoodsJune 2005-December 2006 Transman : Temp Site Supervisor: UPNDecember 2006 Transman : Perm Operations Controller1 April 2007 Transman : Transferred to Pretoria, on my request –

Perm Operations Controller: UPN16 March 2008 Transman : Transferred to Isando: Perm Operations

Controller16 May 2008 Transman : Promoted : Perm Senior Operations

Controller1 February 2010 Transman : Promoted : Perm Sales Consultant, 420

Placed StaffMarch 2010 Transman : Promoted : Perm Business Development

OfficerNovember 2011 Transman : Awarded - Best Business Development

Officer 20111 November 2011 Transman : Promoted : Perm Senior Business

Development OfficerJanuary 2012 Transman : Promoted : Perm Key Accounts Manager.

Third level management, 470 Placed Staff

SUMMARY:• Current laws and regulations sufficient;• Improve enforcement, monitoring, and

inspectorate;• Support the registration of TES industry;• Support the notion of co-regulation;• 6 months period;• Deeming provision / joint and several liability.

THANK YOU