High court supports Numsa’s call on banning labour brokers

Numsa hails the North Gauteng High Court judgement as a major victory for the struggle to ban labour brokers.
The court ruling on 27 November 2013 dismissed with costs the application by the Confederation of Associations of the Private Employment Services (CAPES). CAPES is headed by the controversial Loane Sharpe, who is Head of ADCORP, the largest labour broker company in the country.
In 2010, after two weeks of protected strike, Numsa reached agreement with the motor industry employers to restrict labour brokers to zero in the fuel retail sector and 35% for the rest of the motor industry. The CAPES challenge was that the Motor Industry Bargaining Council (MIBCO) did not have the right and power to conclude such agreement and that the Minister of Labour was not supposed to extend the agreement to non-parties in terms of the provisions of Labour Relations Act (LRA) Section 32, because it was unconstitutional.
This judgement is a victory for Numsa members and motor industry workers. It is sending a clear message to employers and the state that the “slave trade” in the name of flexibility. This will go a long way to ensure equity in the workplace within the motor industry.
NUMSA calls on all the employers to engage with us in order to ensure smooth compliance with the agreement. We have already developed guidelines to facilitate the process of absorbing the workers from the labour broker to the primary employer, based on principles of fairness, objectivity, social justice, equity.
Extract of 2013 Numsa guideline for the implementation of clause 3.7(6)
(5) Notwithstanding anything else in this clause no employer operating in sector 5 will have any of their core work force belonging to temporary employment services by the end of February 2012.
(6) Notwithstanding anything else in this clause for all employers operating in the rest of the industry no employer will have more than 35% of their core work force consisting of temporary employment services by the end of August 2013.
The Motor Industry procedure and criteria for the process of phasing out and reduction of labour brokers to 35% of the company workforce from 01 September 2013.
Definition of employer core workforce: Employer’s employees registered with MIBCO in terms of Main Agreement except clause 3.7
The workers who were employed/registered first by the labour broker or has longer industry service / experience must be given first preference to permanent status by the industry employer.
Sector 5 – Fuel Stations do not have labour broker employees effective form 01 March 2012.
The company who has labour brokers must:
• Disclose the nature and terms of its contract to the Union and MIBCO.
• Disclose information on number of core employee workforce and labour broker workers to the Union and MIBCO. Core workforce must be reported monthly in the Regional Councils and regularly to the National Administrative Board.
• Meet with the Union shopstewards / officials to negotiate the process of the phasing out of labour brokers to 35% maximum
• MIBCO must audit and verify the company and labour broker information and data and enforce the phasing out process
Wages and Conditions of  Employment
To ensure objectivity, fairness, equity and social justice in the workplace,
• The company minimum rates of pay shall apply per grade. Where the former labour broker worker earns below the company minimum, parity process shall be negotiated to rectify within 12 months.
• The accumulated employment service at the Labour Broker shall be recognised by the company for purposes of benefits and/ or awards.
• The benefits and other conditions of employment prevailing in the company shall apply.
Dispute resolution
Where there is a dispute on the implementation of the reduction, the DRC shall resolve the dispute by expedited process based on the principles of objectivity, fairness, equity and social justice in the workplace within 14 days of referral.
The Council, in consultation with the DRC management, shall agree on the terms of reference of the expedited process, taking the principles into account.
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