Abstract
Orientation: This article focuses on the changes to section 198 of the Labour Relations Act (LRA).Research purpose: The purpose of this study was to explore the perceptions of employees regarding the changes to section 198 and the potential implications of these changes for the company and its employees.Motivation for the study: The changes to section 198 of the LRA are new and the impact of the changes to a company and its employees is still unclear.Research design, approach and method: The qualitative exploratory study was conducted with six employees of a large integrated petroleum and chemical company making use of labour brokers, until data saturation was reached. The data were collected by means of individual interviews and telephonic interviews.Main findings: The results indicated that the changes to section 198 have positive and negative implications for the organisation as well as its employees. The negative implications for the organisation are higher costs, new policies and guidelines, and less employment flexibility. The negative implications for the employees are unemployment, negative attitudes, poor employability, and a situation where the permanent employees have to do all the work.Practical / managerial implications: The outcome of the study can be used to develop an employment policy and dispute resolution to minimise the negative implications for the organisation and its employees.Contribution / value-add: The study represents original research, extending the current body of knowledge on the perceptions of employees in the human resources department regarding the changes to section 198 of the LRA.
Highlights
The workplace and the employment relationship are governed and supported by three fundamental pieces of South African labour legislation: the Labour Relations Act 66 of 1995 (LRA), the Employment Equity Act 75 of 1997 and the Basic Conditions of Employment Act (BCEA) 55 of 1998
South African labour legislation has undergone some changes, to section 198 of the Labour Relations Act of 1995 (LRA), which deals with labour broking
These proposed changes caused much debate regarding the impact they might have on employment rates, company expenses, international competition and the free labour market system, which is very similar to the system operating in Namibia, one of South Africa’s neighbouring countries (Botes 2013; Van Eck 2010)
Summary
The workplace and the employment relationship are governed and supported by three fundamental pieces of South African labour legislation: the Labour Relations Act 66 of 1995 (LRA), the Employment Equity Act 75 of 1997 and the Basic Conditions of Employment Act (BCEA) 55 of 1998. Labour broking is defined in the LRA as an institution or person who renders out the services of an individual to his or her client for a fee These proposed changes caused much debate regarding the impact they might have on employment rates, company expenses, international competition and the free labour market system, which is very similar to the system operating in Namibia, one of South Africa’s neighbouring countries (Botes 2013; Van Eck 2010). Namibia had a very active labour broking sector, which was characterised by harsh treatment of employees and poor working conditions This prompted major changes, resulting in strict regulation, outright banning and, a return to more moderate regulation (Botes 2013)
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