Labour amendments could hurt - Sacci

Johannesburg - Aspects of the labour relations amendment bill could negatively impact on investment in South Africa if approved, the SA Chamber of Commerce and Industry (Sacci) said on Wednesday.

"As currently being considered [it] has the potential to exacerbate the negative impression of South Africa as a desired investment destination and trading partner," Sacci said in a statement.

"This is particularly so at a time when the country is experiencing poor economic growth, a low level of business confidence... a volatile exchange rate, and overall deteriorating global perceptions of the country."

The parliamentary labour portfolio committee was meeting this week to continue deliberations on the bill.

The ANC said the committee had voted in principle on Tuesday to restrict employment of labour brokers by employees to three months.

African National Congress MP and committee member Buti Manamela said the actual vote on the bill would take place next week.

If the three-month regulation was agreed to, Labour Minister Mildred Oliphant would specify to which industries it applied.

Sacci said it was "disturbed by the tenor" of deliberations on the bill.

Proposed amendments were discussed in the National Economic Development and Labour Council (Nedlac) and agreement was reached on a timespan for temporary employment of six months.

"While business commended government on agreeing that brokering would not be banned, the reduction of the period from six to three months will have the unintended consequence of in effect doing so."

This was because the probationary period for new employees was often three months or longer.

"Sacci is of the view that the result will be a loss of jobs rather than job creation, a situation which the country can ill afford."

Sacci said it was also concerned at the proposal making it unnecessary for unions to ballot members before embarking on a strike.

"This is testing the boundaries of legality and could result in more disruptive strike action than is currently being experienced," it said.

"In the current climate the country needs as many safeguards as possible to ensure stability in labour relations. The holding [of] a strike ballot constitutes one such safeguard."