http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.06Change: -0.14
R/$ = 11.66Change: -0.12
Au 1213.36 $/ozChange: -4.14
Pt 1189.50 $/ozChange: -1.00
 
 
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)
 
 
 
 
 
 
 
 
Other Labour and Skills Development News
African entrepreneurs under the age of 22 have until April 15 to submit applications for the fifth Anzisha Prize, which aims to identify Africa’s most exciting young social and business entrepreneurs.
Foreign direct investment in South Africa this year is likely to scale down as a result of dampened investment appetite, exacerbated by a lack of policy certainty, South African-Germany Chamber of Commerce (SAGCC) CE Matthias Boddenberg told Engineering News Online....
NDABE NTSELE The Black Business Council (BBC) is excited to be part of the Empowertec Africa expo as the conference dovetails with the BBC’s focus on promoting the incubation of small businesses
This year marks the first time that black business advocacy organisation the Black Business Council (BBC) will participate in Empowertec Africa – a  biennial expo that showcases small business opportunities in Africa. BBC president Ndabe Ntsele says the council’s...
More
 
 
Latest News
Salani Sithole
International consulting engineering company Royal HaskoningDHV (RHDHV) has appointed Salani Sithole as South African MD, effective March 1. Sithole has been with the company for six years and, prior to joining RHDHV, held various positions in engineering consulting,...
The Gauteng Provincial Government has outlined plans to develop a handful of “mega” human settlements as part of an ambitious long-term housing development strategy aimed at narrowing the housing backlog, with plans afoot to replace informal settlements with...
Eskom power stations
While State-owned power utility Eskom was unable to cut off electricity supply to some of its neighbouring trade partners, it was able to reduce energy exports by 10% when load shedding was implemented locally. The Department of Public Enterprise explained that Eskom...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
The 2015 Sanlam/Business Partners Entrepreneur of the Year (EOY) competition was launched earlier this month in Johannesburg, with the main focus on creating and inspiring entrepreneurs to create jobs and boost the economy.
In a recent letter to the editor that I sent to Engineering News (Concerns regarding South African portion of Square Kilometre Array) and in a follow-up article elaborating further (We must start preparations to build our own synchrotron light source), I stated my...
 
 
 
 
 
 
 
 
 
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