constructional engineering association – labour broking division (cea - lbd)
TRANSCRIPT
LABOUR RELATIONS AMENDMENT BILL BASIC CONDITIONS OF EMPLOYMENT AMENDMENT BILL
Submission to the Parliamentary Portfolio
Committee on Labour(31 July 2012)
WHO ARE WE?• The Constructional Engineering Association (CEA) was
established in 1949;• It is the oldest, and one of the largest of SEIFSA’s 49 affiliates; • SEIFSA is one of the largest Employer Associations in the
country ;• SEIFSA is party to the MEIBC Main Agreement;• Representing 2 500 affiliated member employers;• 360 000 employees in the metal manufacturing, civil
construction, fabrication; and steel production;• The CEA-LBD is the Labour Broking division of the CEA;• The CEA-LBD is a founding Association of CAPES.
EXECUTIVE SUMMARY:• Fully align ourselves with the submission of CAPES, and all
its associates, including BUSA.• The CEA LBD believe that:
– reduction of unemployment through job creation and economic stimulation is key to the future growth of RSA;
– it is required to create and retain jobs to address poverty and inequality;
– it is required to address abusive practices across all sectors of society, which excludes those who do not enjoy full protection of the law;
– it is imperative to promote conditions that will lead to sustainable enterprises and promotion of decent and productive work;
– labour market flexibility is the future of the changing global world of work.
• In pursuit of the points above, we believe that progressive policy choices are available.
UNINTENDED CONSEQUENCES:
• Increment in unemployment levels (youth);• Direct increase to the cost of employment;• False expectations;• Re-organisation of work;• Dispute resolution;• Workplace conflict;• Instability and uncertainty;• Disinvestment;• Administrative burdens;• Legal complexities.
FALLACIES ABOUT LABOUR BROKERS:
• Lack of Training;– contributes R450 million in skills levies per annum– 34% of all learnerships in RSA in 2005 – 2010
• Evasion of Labour Laws & non-compliance;– Only 9% of all referrals involve Labour Brokers
• Rampant Exploitation;– 30% temporary to permanent in the first year; 40% in
the second year
• Lack of contribution to the economy;– R260 million per annum paid in terms of taxes
FALLACIES ABOUT LABOUR BROKERS:
• Overcharging of Employees;• Non-provision of Benefits;• Lower rates of pay;
(see slides)
METAL AND ENGINEERING INDUSTRIES BARGAINING COUNCIL
NORMAL TIME CHARGE RATES, PER HOUR, EXCLUDING VAT
CATEGORY ROP AL SL LE BCL CBLPUB HOL
FRL DRLSEIF
SA
SUB TOT
UIF SDLCAPE
SCC
SUB TOT
P/
FUNDSPF
SUB TOT
A/ FEE
SUB TOT
S/
FEE
GRAND TOTAL
Unskilled General Worker
R 26.24
1.67 1.12 2.19 0.04 0.05 1.34 0.67 0.02 0.01 33.35 0.33 0.33 0.03 1.33 35.37 2.36 0.03 37.76 1.89 39.65 3.17 R 42.82
KEY TO COSTING TABLES:
ROP RATE OF PAY (HOURLY) MINIMUM RATE OF PAY AS STIPULATED BY THE METAL AND ENGINEERING INDUSTRIES BARGAINING COUNCIL
AL ANNUAL LEAVE 15 DAYS PER ANNUM
SL SICK LEAVE 10 WORKING DAYS PER ANNUM / 30 DAYS OVER A THREE YEAR CYCLE PERIOD
LE LEAVE ENHANCEMENT PAY 8.33% OF HOURLY RATE OF PAY
BCLBARGAINING COUNCIL LEVY
R1.72 PER EMPLOYEE PER WEEK AND SAME FOR EMPLOYER - MINIMUM PER COMPANY PER MONTH R175.00
CBLCOLLECTIVE BARGAINING LEVY
R185.00 PER MONTH BY EMPLOYERS WHO DO NOT BELONG TO A PARTY EMPLOYER ORGANISATION AND 1% OF WAGES BY EMPLOYEES WHO ARE NOT MEMBERS OF PARTY TRADE UNIONS
PUB HOL
PUBLIC HOLIDAY 12 DAYS PER ANNUM
FRLFAMILY RESPONSIBILITY LEAVE
6 DAYS PER ANNUM / 18 DAYS OVER A 3 YEAR CYCLE PERIOD
DRLDISPUTE RESOLUTION LEVY
R 0.62 PER WEEK FROM EMPLOYEE AND SAME FOR EMPLOYER
SEIFSATECHNOLOGICAL FUND LEVY
R1.29 PER EMPLOYEE PER MONTH
UIFUNEMPLOYMENT INSURANCE FUND
COSTED ON TOTAL OF WAGE AND BENEFITS
SDLSKILLS DEVELOPMENT LEVY
COSTED ON TOTAL OF WAGE AND BENEFITS
CAPESCAPES LEVY COSTED ON TOTAL OF WAGE AND BENEFITS
CCCOMPENSATION COMMISSIONER
COSTED ON TOTAL OF WAGE AND BENEFITS
P/FUND
PROVIDENT FUND COSTED ON ROP - RETIREMENT, DEATH, DISABILITY
SPF SICK PAY FUND 0.09% COMPULSORY FOR ALL STAFF
A/FEE ADMIN FEE PROCESSING OF WAGES, INVOICING, FINANCIAL FACILITY, BANK CHARGES, EFT TRANSFERS, STATUTORY RETURNS AND REPORTS
S/FEE SERVICE FEERECRUITMENT, SELECTION, PLACEMENT, MANAGEMENT OF STAFF, OPERATIONAL SUPPORT, STATUTORY OBLIGATIONS, RESEARCH, DEVELOPMENT, HR/IR SUPPORT
Copyright © 2012 TransmanThis work is copyright under the Berne Convention. In terms of the copyright Act 98 of 1978 no part of this work may be reproduced or transmitted in any form or by any means, presently known or that may be devised, electronic or mechanical, including photographing, recording or by any information storage and retrieval system, without permission in writing from the publishers.
BASIC CONDITIONS OF EMPLOYMENT ACT
NORMAL TIME CHARGE RATES, PER HOUR, EXCLUDING VAT
CATEGORY ROP AL SL
PUB
HOL
FRLSUB TOT
UIF SDL CAPES CC
SUB
TOT
A/
FEE
SUB
TOT
S/
FEE
GRAND TOTAL
Executive PA R 60.00 3.85 2.56 3.08 0.77 70.26 0.70 0.70 0.07 1.41 73.14 3.66 76.80 6.14 R 82.94
KEY TO COSTING TABLES:
ROP RATE OF PAY (HOURLY) AGREED RATE OF PAY
AL ANNUAL LEAVE 15 DAYS PER ANNUM
SL SICK LEAVE 10 WORKING DAYS PER ANNUM / 30 DAYS OVER A THREE YEAR CYCLE PERIOD
PUB HOL PUBLIC HOLIDAY 12 DAYS PER ANNUM
FRL FAMILY RESPONSIBILITY LEAVE 3 DAYS PER ANNUM
UIF UNEMPLOYMENT INSURANCE FUND COSTED ON TOTAL OF WAGE AND BENEFITS
SDL SKILLS DEVELOPMENT LEVY COSTED ON TOTAL OF WAGE AND BENEFITS
CAPES CAPES LEVY COSTED ON TOTAL OF WAGE AND BENEFITS
CC COMPENSATION COMMISSIONER COSTED ON TOTAL OF WAGE AND BENEFITS
A/FEE ADMIN FEEPROCESSING OF WAGES, INVOICING, FINANCIAL FACILITY, BANK CHARGES, EFT TRANSFERS, STATUTORY RETURNS AND REPORTS
S/FEE SERVICE FEERECRUITMENT, SELECTION, PLACEMENT, MANAGEMENT OF STAFF, OPERATIONAL SUPPORT, STATUTORY OBLIGATIONS, RESEARCH, DEVELOPMENT, HR/IR SUPPORT
Copyright © 2012 TransmanThis work is copyright under the Berne Convention. In terms of the copyright Act 98 of 1978 no part of this work may be reproduced or transmitted in any form or by any means, presently known or that may be devised, electronic or mechanical, including photographing, recording or by any information storage and retrieval system, without permission in writing from the publishers.
Mashudu Mashudu Reuben Ramukhesa
Ramukhesa2000 Matriculated – no tertiary education2000-2001 Seeking employment by myself2002 Temp employment with “Drivers and More”2002 – June 2003 Temp General WorkerJune 2003 Temp Supervisor - South African BreweriesJune 2003-May 2004 Joined Transman - Temp Site Supervisor: Enterprise
FoodsJune 2005-December 2006 Transman : Temp Site Supervisor: UPNDecember 2006 Transman : Perm Operations Controller1 April 2007 Transman : Transferred to Pretoria, on my request –
Perm Operations Controller: UPN16 March 2008 Transman : Transferred to Isando: Perm Operations
Controller16 May 2008 Transman : Promoted : Perm Senior Operations
Controller1 February 2010 Transman : Promoted : Perm Sales Consultant, 420
Placed StaffMarch 2010 Transman : Promoted : Perm Business Development
OfficerNovember 2011 Transman : Awarded - Best Business Development
Officer 20111 November 2011 Transman : Promoted : Perm Senior Business
Development OfficerJanuary 2012 Transman : Promoted : Perm Key Accounts Manager.
Third level management, 470 Placed Staff
SUMMARY:• Current laws and regulations sufficient;• Improve enforcement, monitoring, and
inspectorate;• Support the registration of TES industry;• Support the notion of co-regulation;• 6 months period;• Deeming provision / joint and several liability.