Labour compliance can be a significant barrier to entry for small businesses and subcontractors in the labour-intensive civil engineering industry, notes Bargaining Council for the Civil Engineering Industry (BCCEI) operations manager Lindie Fourie. Many emerging contractors lack the systems and administrative capacity required to manage labour compliance effectively and, in addition, may not fully understand the scope of their obligations, explains Fourie. Despite challenges faced by small contractors, labour compliance remains a key requirement, regardless of company size.   

Labour compliance includes adherence to collective agreements, minimum wages, benefits and reporting requirements. The BCCEI is mandated to regulate labour relations within the sector, providing a structured platform for organised labour and employers to negotiate collective multi-year agreements.

“The issue of minimum wages is critical to sector stability as it ensures a level playing field for all companies,” Fourie says. “Collective agreements set the minimum standards so that every employee receives a fair wage and the BCCEI ensures compliance through its inspection processes.”

Fourie explains that a key focus of the BCCEI’s awareness initiatives is ensuring that smaller subcontractors understand and apply these minimum wage requirements when preparing their tenders and paying their employees. On a civil engineering project, all contractors and subcontractors are expected to operate under the same rules.

“Compliance is vital,” she adds. “Without it, companies could undercut competitors by paying unfair wages. Given how labour-intensive construction activities are, wages represent a significant portion of project costs.”

Fourie highlights the important role that larger contractors can play in strengthening compliance through enterprise and supplier development programmes. These initiatives typically include mentoring, supervision and structured support to help emerging subcontractors build capacity, improve governance and operate sustainably. She stresses that meaningful transformation extends beyond awarding work to smaller firms. It requires equipping them to operate lawfully and sustainably within a regulated environment.

“Labour compliance must form part of procurement and enterprise development strategies,” Fourie asserts. “Without compliance, subcontractors risk fines, back-pay liabilities and, in severe cases, being unable to complete the work. This can lead to job abandonment and disrupt the broader project.”