http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.14Change: -0.15
R/$ = 12.05Change: -0.20
Au 1200.03 $/ozChange: -6.12
Pt 1139.50 $/ozChange: -16.00
 
 
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
As South Africa is gripped by a wave of violent xenophobic attacks, trade union Solidarity called on government to appoint a multidisciplinary independent task team headed by a retired judge to delve into the violent uprisings against non-South Africans. While...
Transnet’s Maritime School of Excellence provided the ideal opportunity to provide skills development for South Africa and the rest of the subcontinent,” Department of Public Enterprises acting director-general Matsietsi Mokholo said at a Maritime School of...
This year’s top 18 national finalists for the South African Breweries’ (SAB) youth entrepreneurship programme, SAB KickStart, was announced last month in Johannesburg, and coincided with the competition’s twentieth anniversary.
More
 
 
Latest News
The Sere wind farm
Electricity utility Eskom announced on Monday that its 100 MW Sere wind farm, near Vredendal in the Western Cape, had entered full commercial operations at the end of March, with all 46 wind turbines having been erected and the construction of the Skaapvlei...
Construction on Line 2B of Pretoria’s A Re Yeng bus-rapid transit (BRT) system would start in August, while construction on Line 2C would start in November, Transport Minister Dipuo Peters has revealed. Line 2B will run between Hatfield and Menlyn and Line 2C between...
Ministers from governments across Africa have renewed their call for a strong, new universal climate-change agreement and increased flows of funds, including through market and finance opportunities, sufficient to fulfil Africa’s development aspirations, at the...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
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.
 
 
 
 
 
This Week's Magazine
Today’s organisations execute projects within increasingly complex environments – particularly in the engineering sector. The ability to successfully execute these projects is what drives the realisation of successful projects and, ultimately, the achievement of...
SMART DISTRIBUTION Providing funds to introduce smart grid technologies in the absence of a clearly defined strategy will not result in the desired outcome
South Africa’s distribution grid is a twentieth-century relic, which must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath. “What we are...
There is a disparity in government funding provided to integrated transport networks – bus rapid transit (BRT) networks ¬¬– and that given to conventional bus services, says Putco executive director Thys Heyns. “We have neglected and strangled conventional bus...
The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
Automotive component manufacturer and distributor Metair is centralising its research and development (R&D) work in Turkey, in an attempt to bolster the company’s ability to produce affordable start/stop batteries. The new R&D centre is part of an expansion plan in...
 
 
 
 
 
 
 
 
 
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