http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.08Change: 0.04
R/$ = 13.44Change: 0.01
Au 1133.21 $/ozChange: -2.28
Pt 1011.00 $/ozChange: -5.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 25, 2012

New labour laws will set SA back – Busa

Back
Engineering|Africa|Busa|Business South Africa|Business Unity SA|Africa|South Africa|Manufacturing|Retail Organisations|Vanessa Phala
Engineering|Africa||Africa||Manufacturing||
engineering|africa-company|busa-company|business-south-africa|business-unity-sa|africa|south-africa|manufacturing|retail-organisations|vanessa-phala



Big business came out strongly in opposition to government's proposed changes to labour legislation on Wednesday.

Appearing before Parliament's labour portfolio committee, on the second and final day of public hearings on the Basic Conditions of Employment and the Labour Relations amendment bills, Business Unity SA (Busa) warned the two measures, if enacted, would set back employment creation.

"The level of unemployment is continuing to rise, and we are of the opinion that the bills that we have before us will not take us anywhere in terms of addressing the issue of unemployment," Busa executive director Vanessa Phala told MPs.

Busa represents South African business on macro-economic and high-level issues that affect it at national and international levels.

It also represents local businesses' interests in the National Economic Development and Labour Council (Nedlac).

Created in 2003, through the merger of the Black Business Council and Business South Africa, the confederation includes among its members the SA Chamber of Commerce and Industry and the Chamber of Mines, plus many other professional manufacturing, engineering and retail organisations.

"Let me indicate that this submission by Busa is supported by all our members," Phala said.

Busa's key concern was the need to create jobs. Government's New Growth Path and New Development Plan were good initiatives that set specific targets in terms of the number of jobs that needed to be created.

"But we are of the view that we will not be able to meet those targets if we've got the kind of bills we have before Parliament."

A critical area for the creation of jobs and the growth of business was to have a strong compliance and enforcement mechanism, hence the need to have a very good labour inspectorate in place.

"We are of the view that the kind of laws we [already] have, [together] with very good enforcement, can really achieve the intended objectives."

Phala said it was not a good idea to "always want to change the laws because there is no compliance", and suggested to MPs that they might want first to address enforcement and address compliance.

She also called for a comprehensive assessment of the impact the new bills might have, taking into account the proposals they contained.

"We feel, at the moment, that these bills... will not get us anywhere and not enable us to meet our target and our objectives."

The amendments in the bills provided "poor policy choices", and there were other options.

"The bills... will have a dire, dire impact on small business in particular," she warned.

If you made it difficult for small business to operate, "you are killing many jobs".

Busa had done its own impact assessment, over three key areas.

This assessment showed that about 215,000 jobs would be lost as a result of the equal treatment provisions contained in the amendments.

"It also indicates that between 11,000 and 105,000 jobs will be lost as a result of amendments prescribing wage increases on actual earnings.

"Furthermore... between 38,000 and 80,000 jobs will be lost should amendments to extend collective bargaining agreements be introduced."

This was clearly not a very good picture, and one that business was reluctant to commit itself to.

"We need to really go back... and ensure that the bills passed by Parliament will give us the kind of outcomes we want."

On part-time employment, she said business was not against treating workers equally, but the proposed amendments went beyond discriminatory matters.

"They go on to require employers to pay... the same benefits to part-time workers as those working full-time."

This would increase the wage bill and discourage employers from employing part-time workers.

It would also promote onerous litigation.

South Africa was grappling with a serious crisis of unemployment, but the amendment bills would not help solve this problem.

"What we have before us in these bills is counter to what we are trying to do," Phala said.

Cabinet approved the two labour amendment bills for submission to Parliament in March this year.

Edited by: Sapa
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Deputy President Cyril Ramaphosa
Deputy President Cyril Ramaphosa said on Wednesday that his attempts to improve the efficiency of South Africa's state-owned entities (SOEs) are not an attempt to get more votes in the 2016 Local Government Elections. He was updating the National Council of Provinces...
Frost & Sullivan ICT programme manager Gareth Mellon
It is increasingly widely accepted that deploying information and communication technology (ICT) infrastructure will bring about a surge in economic growth across Africa. However, the sourcing of billions of dollars required to deliver universal coverage was up for...
International advisory firm Merchantec’s CEO Confidence Index fell to 42.2 points in the third quarter of the year, compared with 45.4 points in the second quarter, remaining below the neutral 50-point level. This is the lowest score recorded in the Merchantec CEO...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96