Business warns over labour bills

Published Jul 2, 2012

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The SA Chamber of Commerce and Industry (Sacci) has warned Parliament that two key labour amendment bills would stifle growth and job creation.

Sacci said on Monday it had listed 10 key problems with the amendments to the Basic Conditions of Employment Act and the Labour Relations Act in a submission to the portfolio committee on labour.

Its key areas of concern included the proposed six-month limit to temporary work contracts, and the provision that temporary workers may sue for unfair dismissal due to a reasonable expectation of an extension of their contract or offer of permanent employment.

Sacci also took issue with greater powers given to the labour minister to regulate labour-broking, out-sourcing and sub-contracting, and to determine increases on rates of pay in sectoral determinations.

The chamber said the two laws in question formed the basis of South Africa's labour legislation, and it was therefore vital that they should facilitate job creation and economic growth.

“Unfortunately, some of the proposed amendments ... do exactly the opposite by imposing further costs on business to employ workers and increasing the rigidity in the market for temporary employment services.” - Sapa

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