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Are labour brokers fair to workers?

Labour Q&A with Terry Bell

Fin24 user Godfrey Hlazo wants to know what labour brokers' job is. Are they fair to the employees, he asks.

Terry Bell responds:

A labour broker - in broad terms - is an individual or company that provides labour to other companies.  

But there are temporary employment services (they do not like being labelled brokers) who carry out this service. They adhere to the provisions of the Labour Relations Act, pay the going rate, and provide the going benefits to the labour they provide, taking their income from a premium they extract from clients.

But such operations may be in the minority. Nobody knows.

There are certainly many companies that provide labour for any variety of services and that do not observe any of the requirements of the labour laws.

In an environment where there are masses of unskilled and semi-skilled workers desperate for work, these brokers - often dubbed the "bakkie brigade" - can exploit grossly the workers they hire and hire out.  

But companies that outsource work to competitive tender are also often responsible for what you call "unfair" treatment of employees. They will, in accordance with the demand to maximise profit, take the cheapest tender even where that means that the workers employed via a "labour broker" will be under paid.

It is a problem. And something should be done about it.

- Fin24

* Terry Bell is an independent political, economic and labour analyst. Views expressed are his own. Follow him on twitter @telbelsa.

Disclaimer: All articles and letters published on Fin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.

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