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Prince Mashele

Where is the pen of conscience?

2009-10-19 10:11

The national debate triggered by Cosatu's call for labour brokers to be banned needs to be rescued from the deliberate obfuscation of those who wish to conceal the evilness of labour brokerage. 

A quick search on the internet reveals just how the poor in our society lack intellectual tribunes to defend their rights in the corridors of knowledge and information. Almost all columnists and newspapermen refuse critically to interrogate the logic and practice of labour brokerage. The vogue is to project those who call for a ban as reckless imbeciles who are harmful to business.

Various spokespersons of labour-broker-companies seem to find scare tactics handy; they warn that, should labour brokers be banned, many people would lose their jobs. Others have sought to persuade our nation that labour brokers negotiate the best deals between skilled professionals and employers, and, therefore, they supposedly provide a critical service.

All of these spurious claims are constructed tactically to bribe the conscience of our society, solicit public support and isolate Cosatu as an organisation bent on injuring South Africa's collective interests. Given the class symbiosis between labour brokers and newspapermen, it is hardly surprising that media discourse has, hitherto, largely been on the side of labour brokers.

In order to expose the hollowness of the story sold to us by the advocates of labour brokerage, a reflection on some basic issues relating to the subject in question may be necessary. In his magisterial treatise, Principles of Political Economy, English writer John Stuart Mill states a fact with which many of us are indeed familiar: "The requirements of production are two: labour and appropriate natural objects." (1848: 51)

Under slavery, human beings would be coerced to provide their labour to a slave master who wished to apply such labour on some natural objects to produce his desired products. When slavery was abolished, people offered their labour freely to industrialists in exchange for pecuniary rewards. Essentially, this represented the genesis of a normal capitalist system. Companies recruited labour on a competitive basis, thus allowing people to decide which company they preferred to work for.

From the beginning, there was a direct negotiation between a prospective employer and prospective employee. It is mainly worker demands and unionisation that led to companies electing to avoid employing workers directly. The burden was shifted to middlemen, euphemistically termed "labour brokers".

While those who profit from it are sure to deny, the logic of labour brokerage is to make an employee vulnerable by rendering him conscious that he has less labour rights in relation to his employer. The philosophy behind it is for workers to toil while knowing that they could be easily gotten rid of. This is meant to guarantee the maintenance of their unsatisfactory work conditions.

Indeed, this system advances the mutual interests of companies and labour brokers.  Companies enter into agreements with labour brokers to provide labour in order for companies to avoid taking responsibility for the workers who do work for them. On their part, labour brokers benefit by serving as channels through which workers get to do work for companies.  In order for labour brokers to be protected from responsibility, they generally employ workers on temporary basis; a system known as casualisation. Thus is how it is has become almost impossible for unskilled South Africans to find permanent, decent jobs in the labour market.

Apart from unions, few of our newspapermen have written anything to explain how casualisation undermines the rights of workers. Before Cosatu earnestly proposed a ban, on labour brokers, it was as if there was no single casualised labourer in our country. The media was as calm as Calm River.

But what would happen if we were to remove the middlemen, labour brokers, from our employment system? Would companies close down? Indeed, labour brokers would have us believe that our economic subsystem would come to an abrupt halt, if they were to be erased from the system.

As John Stuart Mill reminded us, "The requirements of production are two: labour and appropriate natural objects." Production does not perforce require labour brokerage! While they may not prefer it, companies can be made to hire their own workers and still make profit. They can be compelled legally to provide the kind of job security of which labour brokers have robbed workers.

Anyone with a human heart must answer the question: if you had a brother, sister or father whose job security were undermined at the hands of labour brokers, would you side with the newspapermen who write to protect the future of labour brokers?

However convincing those who argue in support for labour brokers may seem to be, our nation still has to answer why we have for many years been indifferent to the kind of suffering to which labour brokers have subjected poor South Africans who have been looking for decent work. In The Fastidious Assassins, Albert Camus cites Bielinsky's letter to Hegel:

With all the esteem due to your philistine philosophy, I have the honour to inform you that even if I had the opportunity of climbing to the very top of the ladder of evolution, I should still ask you to account for all the victims of life and history. I do not want happiness, even gratuitous happiness, if my mind is not at rest concerning all my blood brothers. (1953: 38)

Could it be that those who support labour brokers do not care about the rights of workers because they are not their blood brothers? Or is it because our newspapermen have reached the top of the ladder that they write as if they do not sympathise with workers who are victims of life and history?

Hopefully, workers will someday have representatives among those in whose hands God has placed the gift of writing. When this happens, the human dignity of workers would perhaps not be airbrushed with the same ease with which Cosatu has been dismissed as an organisation whose call for a ban on labour brokers is injurious to the interests of our economic system.

- Mashele is Head of Crime, Justice and Politics Programme at the Institute for Security Studies. He writes in his personal capacity.

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Comment on this story


CZ 10/19/2009 10:22:04 AM
Eloquently put!!! Though provoking to say the least.

JBird 10/19/2009 10:42:38 AM
Prince I always look forward to reading your articles. As a contractor myself I understand the worries that casual workers can face. Even though I am one of the lucky ones who gets paid more for accepting this risk, I am still nervous about undertaking any long term decisions as I have no idea what the immidiate future holds. We need to have a balance where the rights of the employers and employees are matched. I am going to do some more reading on this matter and get a more informed opinion.

Senzo 10/19/2009 10:54:44 AM
I used to see it as the easiest way job seekers could use to access job market, until my own brother was recruited by one of the to work for ABSA bank. After three years of hard labour, he was told the the contract expires by month end; what he got was the only money he worked for the month

James 10/19/2009 10:56:41 AM
There is simply far too much talk about "slavery". The average man on the street does not know where to turn to find a job, whereas the broker is very well placed to secure a job for him. It is a question of whether the unfortunate unemployed must walk the streets looking for a post or letting some other person's fingers do the walking to find him a job. There is a tendency in this country on the part of the Unions to want to preserve and increase their membership (read contributions) at the cost of helpless unemployed folk simply looking for a job, be it long or short term perhaps at the cost of a once-off fee rather than an ongoing drain on their pockets. Vuka, the unions are against you trying to earn a living without joining up.

TL 10/19/2009 11:29:42 AM
Cosatu's mandate is not clear at all, they should remember that there are various types of agencies/ labour brokers. Examples: some companies sell candidates to big organisations, meaning they get a once off fee from the orgsanisations and they do not even touch the candidate's salary. Others like Aptus Recruitment, do not allow companies to take the candidates on permanent employment/ full time, because they rip off those candidates. I trust that Senzo's case falls within this example. I doubt that Cosatu is doing this because they are looking after the needs of the masses, we all know that there is no CA, Attorney, Doctor who will join them

Adams 10/19/2009 11:31:36 AM
I dont see any reasoning for your assumption that journalists take the side of the labour broker. What benefit do they get out of this? Sounds like you are jumping to conclusions because not enough people agree with you. Must be that damn third force again.

Eren 10/19/2009 11:33:02 AM
There are a lot of people in the IT industry who work through labour brokers. These skills are not always required - only for the duration of a project. It does not pay the companies,(including the government) that use these skills to employ the current contractors full time and have staff sit idle for months or even years between projects. If there is an outright ban on labour brokers, a large part of the IT industry will be impacted. The point here is that there is a bigger picture. While protecting the unskilled workers, thousands of contractors in the IT industry will be unable to work.

AJ 10/19/2009 11:37:08 AM
Do you think you are free? You pay more than 50% of your sallary to the government in the form of income tax, property tax, FAT etc. Then if your not one of the lucky few, you pay the banks interest on your homeloan(+/- 20 to 25 years of your lifes work!) and then you have to slave away for the rest of your life just to feed and clother yourself and your family. We may have 'rights' but we are NOT free, we are slaves.

Anti_Labour Broker 10/19/2009 11:38:57 AM
I am a contractor. I am employed by a contract house (read labour broker). I know what I earn. I know what the client pays the labour broker. The labour broker earns almost as much again as myself. I have no rights, except to go to work, be paid at the end of each period (i.e. monthly), and then to hope the contract is renewed at the end of the period. No legal recourse if the client decides one morning to get rid of me. No labour law is applicable. The labour broker just lets me go in that case, because my work is dependent on the 'operational requirements' of the client. Nothing stops the client from hiring me direct, even on a one-year contract. Why do they use a labour broker? Becuase there are kick-backs in operation. I know several of them (LB's) by now. Some, after a couple of beers, will admit that the reason they take almost 100% profit, is because the kick-backs are so high.

I for one, would like to see the labour broker business either sent packing, or more tightly regulated to prevent such exploitation.

To the question why do I go through a labour broker then? Well, if you spend almost 2 years looking for a job, to be told every time you are too qualified, too pale, too male, too old, then you too will take on such a job.

FN 10/19/2009 11:43:41 AM
Let's face truth for what it is. Labour-brokering has bypassed all labour laws. What's the use for some companies to comply to labour laws if there's a loophole called broking. As a business person I would prefer to hire staff on temp to avoid tediuos labour law. It's not true that labour-brokers facilitate employment, newspaper ads and HR depts does that. Brokers facilitate breaking of the law.

Dave 10/19/2009 11:52:40 AM
A very interesting article, Prince. For the sake of conducting a worthwhile debate, however, can I ask your views about my understanding of COSATU, below:
1) COSATU does not represent the poor. It represents about 2 million salaried individuals who do not meet the definition of poor (i.e. as the total absence of opportunities, accompanied by high levels of undernourishment, hunger, illiteracy, lack of education, physical and mental ailments, emotional and social instability, unhappiness, sorrow and hopelessness for the future. Poverty is also characterized by a chronic shortage of economic, social and political participation, relegating individuals to exclusion as social beings, preventing access to the benefits of economic and social development and thereby limiting their cultural development.")
2) COSATU, like any large, political organisation, exists mainly to promote its own ongoing existence. To test this assertion, conduct a mind experiment where you imagine if COSATU would cease to exist the moment every single business in SA were nationalised, for example, and run by a committees of workers.

Riaan 10/19/2009 11:59:38 AM
It seems as if you are trying to hit 2 targets at the same time, the jounalists on the one hand and labour brokers on the other. As a journalist you should know that they will mostly only report on whats hot. Is there no good in the labour brokers? Everything you say is true, but surely they do have a purpose and do supply a needed service. If exploitation takes place then regulation is needed, banning something smacks of communism and apartheid.

CJR 10/19/2009 12:11:38 PM
first of all your work stinks with over cluttered fancy words. Try simplicity. Focus on the K.I.S.S principal. you are not impressing anyone. Then, to the point of labour brokers, I agree with the Cosatu. They, being the labour brokers, are nothing more than money sharks using slave labour to enhance their own wealth.

SP 10/19/2009 12:28:23 PM
Any middleman is a con artist. You just have to look at labour brokers, employment agents, estate agents, mortgage originators, etc. They all charge huge fees without adding any value. Bunch of parasites.

Louis 10/19/2009 12:33:43 PM
Prince, those who call for an outright ban on labour brokers are reckless imbeciles who are harmful to business. The fact that there are labour broker practices that are harmful is also true but you've stepped into the same logic trap by confusing seperate issues. The Marxian premise of societal conflict is the divide between labour and capital. COSATU believes that nationalising capital is the solution yet to me it seems obvious that labour must own the companies they work for to remove the divide. There is a huge difference in these two apporaches. The reality is that COSATU can not exist whithout the conflict between labour and capital: if there are no more employees then COSATU would seize to have a function. COSATU wants NHI, but they organise labour strikes by doctors to further increase healthcare cost. I've yet to see COSATU do something about the rights of 150 000 taxi drivers who have even less rights that someone employed through a labour broker. Check how many COSATU high ranked officials have fingers in the taxi industry pie and you'll understand why, but they make taxi driver's believe that being employed as a BRT bus driver they'd be worse off. Currenlty trade unions are necessary evils, but we have to work towards more participation by more people in the economy to become owners on the businesses they work for. That is when people will have power. COSATU's model is just centralisation of power.

Carlo 10/19/2009 1:18:26 PM
We must look at why labour brokers exists in such an abundance in RSA. It has been said before(and slammed just as quickly) that RSA needs to relax on its labour laws to facilitate economic growth. Not taking this in consideration has led to unscrupolous labour brokers getting on the scene. Treat the cause not the symptoms! South Africa as a country will never achieve First World status as our industries are to labour intensive. Educate the people, cut down on intensive labour cost and get the people to be empowered with education for a different career than labour.

Corrie 10/19/2009 1:33:41 PM
I totally agree with Anti_Labour Broker. I also fell victim to this pracitce due to the same reasons. Total regulation is needed to really protect the worker. It seems that labour brokers have good intentions until you see how they threat their workers. Good article.

bob 10/19/2009 1:35:32 PM
Top marks for paying attention in Philosophy 1. Now at least you have learned (that's pronounced learn-ed) people to quote when your thoughts run dry. Next year register for Logic 1. Don't register for Journalism 1, because then you will obviously become a coconut sellout. How's the gravy at the Institute? Good, hey?

shan@author 10/19/2009 2:00:53 PM
Nice article! you should write more often.

Musa Aphane 10/19/2009 2:02:31 PM
Very good piece bra! I have an aunt who is a victim of this brokerage system! she had no rewards after working for a well know supermaker in Mayville for more than 20 years. She is dirt poor(er) now and we have to pick up the pieces! With regard to our mediamen - the less said about these blokes the better! There are no Percy Qoboza's any more - opnly cut and paste journalist. Some even Browse you know!

fish 10/19/2009 2:09:47 PM
As a current contractor of 9 years. I have no medical aid, no pension. With a broken foot sitting at my desk because I have no choice. No work = no pay. No vacation, and losing big time on public holidays that are enjoyed by most. Asking the labour broker to add a clause in the contract to at least negotiate for inflationary increase, leads to threats from Labour Broker. Imagine 2 to 3 years on the same salary with no say. Your boss are prohibited to speak to you, you must talk to your Labour Broker that immediately turns a deaf ear. There is a clause that prevents you from leaving and working for the competition or the client directly.

Unlucky Contractor :(

Mawaka 10/19/2009 2:56:01 PM
I couldn`t agree with u more,i was a victim of this in 2003 and recently about 4 weeks ago i applied for a job which was advertised at R 15 000 - R 25 000,the lady tried to pursuade me for R 8000 and i said do you if u know what i mean,i dont want to use the french word.Brokerage is a form slavery and poverty.trap.thank Prince.

a nurse 10/19/2009 3:08:53 PM
The mistake all parties are making in the Labour Broker debate is to lump all labour brokers into one single basket. One cannot compare Kelly Personnel, PAG and other brokers of high skills into the same box with a few abusive brokers of farm labour.

I am a nurse. I have worked through labour brokers, on and off, for the past 30 years. I earn more than a full-time employed nurse even after paying 12% of income to my agents. Sure, I don't get benefits like paid leave or subsidised medical aid. BUT I work when I choose, and that is my choice.

If COSATU, Ms Lumka, and journalists reporting on labour brokering bothered to research the issues they would discover that the majority of skilled people working through labour brokers are women with children. Women who want the freedom of time off for school holidays, or when their children are sick. Mostly these women do not need benefits of fulltime work because their husbands contribute to medical funds, and pension funds.

If labour brokers were banned more than half the nursing staff currently running facilities like the Joburg General Hospital, Milpark hospital, and Bara would vanish. If labour brokers were banned most of us would simply tranfer to the books of labour brokers who place nurses in hospitals in Europe, Australia and Saudi Arabia.

So Suck That, Prince Mashatile. And hope to God that, following the labour broking ban, you don't land up needing open heart surgery and intensive care nursing care. Because you would simply die for lack of skills.

Steve 10/19/2009 3:19:02 PM
This is a capitalistic society. If you do not like it, then LUMP IT, and find better employment elsewhere. If I offer someone R100 to do a job that's worth R1000, and they accept it, good luck to me

Economist 10/19/2009 3:34:53 PM
Production requires labour and appropriate natural objects. If business can more easily access labour and appropriate natural objects, they will be more productive.

Removing labour broking will only make it more difficult to obtain labour - and make companies less productive.

Yes, some will close down. Others will never open and in the long run, there will be fewer, albeit comfortably and securely, employed people.

Beryl 10/19/2009 4:02:07 PM
I have to agree with Prince. I have seen how contract workers miss out on the nice goodies handed out to the permanently employed workers. The reason is always clear. They are contractors and are not entitled to nice goodies. They also have very little job security. And if the company has to retrench, they of course are the first casualties and have no retrenchment packages. And yes people do have a voice, but who is going to rock the boat and make trouble when he knows he's so expendable. If labour brokers are outlawed it just means companies will have to employ contractors as permanent staff. What did we do before labour brokers?

Singularity 10/19/2009 5:16:45 PM
"Spurious claims" aren't isolating COSATU; they are doing a sterling job at that with their collectivist, socialist rhetoric.

Logic 10/19/2009 8:37:44 PM
Employees were cruelly exploited in South Africa in the past. However, now the pendulum has swung too far in their favour. It's more difficult, onerous and costly to end an employee's contract than to divorce one's spouse. Paradoxically, the way to create greater employment in this country and thus REAL LONG TERM employment security would be to lighten the legal obligations on employers. I know this because I'm an employer myself. Employment law is a legal minefield from an employer's point of view, If you don't believe this, try employing someone.

James 10/20/2009 10:06:40 AM
Actually, I believe that a "casual" employee should earn more take-home pay than the contracted one. Think about the benefits that are not involved, in terms of the employer's obligations. The employer does not have to set aside funds for contributions to medical aids, pension, holiday pay and so on. Logically that means the casual employee should be pocketing that extra 10 or 20% more each day he/she works. Rather concentrate upon what is actually happening in terms of the take-home pay and teach the casual to save the extra.

Jeki 10/20/2009 11:06:02 AM
We need to acknowledge the fact that most of us are economic slaves of multinational corporations.They are there in every mall monopolosing the South African business scene.I believe labour brokers just need to be properly regulated instead of being abolished.Of course some are exploiting the workers and that should not be allowed. As a Labour Broker myself, I also saw situations where my clients did not want to pay employees service money/severance pay and I find the practice unfair to employees.They also not listen to your advice as a labour adviser particularly when coming to the rights of employees.However, as a Labour Broker I don't tooch a cent from my employees as they are directly paid by my clinent and I just pay their UIF form the monthly payment I get from my client.

O 10/20/2009 1:15:18 PM
I hate the fact that Labor brokers abuse and take advantage of desperate jobseekers...What happened to the natural forces of economy ?employment does not need any third party...Well written article by the way
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