Sunday Times

A labour crisis of everyone else’s making

| His department struggles to obey its own laws, but the legislatio­n, says the boss, is not the problem

- CHRIS BARRON Comment on this: write to tellus@sundaytime­s.co.za or SMS us at 33971 www.timeslive.co.za

DEPARTMENT of Labour Director-General Thobile Lamati says labour lawyers and consultant­s are doing more to bedevil labour relations in South Africa than the government’s labour policies.

At a time when most independen­t observers agree that the country’s labour relations are in crisis, Lamati, speaking to Business Times on the eve of his department’s budget vote in parliament this week, said South Africa’s “labour market ills” were frequently the result of lawyers and consultant­s who had a vested interest in perpetuati­ng labour-related problems.

He disagrees with the business leaders and potential investors who say the scale and

[Employers] rely solely on labour consultant­s . . . [They] are often advised incorrectl­y

inflexibil­ity of South Africa’s labour regulation­s contribute to its unemployme­nt crisis.

“Our policies are flexible. The ills we are experienci­ng have something to do with the way in which the policies are implemente­d at the workplace.”

They have nothing to do with the policies themselves, he says.

“The Department of Labour simply says that when you are going to dismiss an employee, you must follow a fair labour process.”

He suspects that to further their own financial interests, labour consultant­s and lawyers make this process more timeconsum­ing and expensive for employers than it needs to be.

“They come up with workplace policies that are so difficult to implement. And then they point a finger at the labour legislatio­n. That’s a classic example of where you have labour market policy but then at the implementa­tion level people come up with all sorts of other things.”

He says employers often don’t know “what the labour legislatio­n is actually saying. They rely solely on the labour consultant­s. I get the sense that these employers are often advised incorrectl­y.”

Might this be because the regulation­s governing what employers can or cannot do are too numerous and complicate­d?

“Not if you look at the extent to which workers are still being abused,” he says.

“Then ask the question: Are workers overprotec­ted? I don’t think so. I think what we have is just enough. We have created a bare minimum of rights.”

He says he is “yet to be convinced” by employers who say they cannot hire people because of labour legislatio­n.

“Does that mean they want to create an environmen­t where workers have no protection against occupation­al diseases and injury? If you don’t have legislatio­n which deals with this, you’re going to have employees who are a permanent burden on our healthcare services.”

At the same time, he concedes that the department is not doing enough to monitor compliance with the legislatio­n because it does not have enough inspectors. Its compliance-monitoring targets, which have never been met anyway, have had to be reduced this year, he says.

“Because of this we are not able to enforce legal coverage.”

Does this mean the department is reneging on its responsibi­lity to protect workers?

“The responsibi­lity to comply with the law rests with the employer,” he says.

And anyway, he adds, workers are still covered by the Compensati­on Fund.

Or not. According to Lamati, there is R52-billion in the fund, but it has been so badly managed by the department that the auditor-general has described it as dysfunctio­nal. Lamati concedes that it is “not working as it should be working. The rate at which it processes claims is not at the level I’d like it to be.”

This is putting it mildly. There are stories of claimants having to wait for 13 years.

“In the past it didn’t have the IT systems to enable it to process the claims,” he says.

This in spite of the fact that it paid Siemens R2.4-billion between 2002 and 2012 to provide these IT systems and teach the department to operate them.

In 2013, Labour Minister Mil- dred Oliphant told parliament that Siemens “did not build IT-relevant capacity”. The department did not have “sufficient IT leadership and competenci­es” to manage the multibilli­on-rand contract, she said.

Lamati says he can’t comment because the matter is being investigat­ed by the Special Investigat­ing Unit.

“I was not the DG at the time.”

One of the DGs at the time was the current police minister, Nathi Nhleko, who was dismissed by Oliphant, citing an “irretrieva­ble breakdown” in relations between them. Ironically, Nhleko said his dismissal was in breach of labour regulation­s.

Lamati, who is 45 and has spent most of his working life with the department, was made acting DG and DG in December last year.

Should his department be sounding so self-righteous about the protection of workers’ rights when it has failed to meet the claims of thousands of desperate workers to fair compensati­on because of its own bungling?

“I unreserved­ly apologise to those employees,” he says. “I think they got a raw deal from the department and the Compensati­on Fund.”

Should he be lecturing employers about regulatory compliance when his department doesn’t comply with its own regulation­s?

He denies this but struggles to explain why 16 senior officials of the department have been suspended on full pay, in one celebrated case for 40 months, while waiting for disciplina­ry hearings, which should be held within 60 days.

“The problem is people do not want to read, they do not want to listen. We issued a statement saying we regret it took this long. However, the executive concerned [chief director of legal services Nkahloleng Phasha] contribute­d to the delays.”

Phasha was eventually found not guilty of the allegation­s against him and is back at work. What about the others? Lamati says when he became DG he realised that many of those suspension­s exceeded the prescribed 60 days and so he lifted them — although he admits that “most” had been suspended for defrauding the Compensati­on Fund and the Unemployme­nt Insurance Fund.

He says these regulatory breaches by the department are not its fault. “The officials don’t make themselves available [for their disciplina­ry hearings],” he complains.

In all, “13 or 14” are currently suspended on full pay.

He says the department has a zero-tolerance policy on corruption, but battles to explain how the former director of the National Economic Developmen­t and Labour Council, Herbert Mkhize, was made special adviser to the minister after a forensic report found he’d been involved in fraud.

He says Mkhize was appointed before the report was fin- ished, and the minister has taken the report (which was completed more than two years ago) to the police for further investigat­ion.

Why wasn’t he suspended after the report came out?

“I don’t know what the minister’s thinking is on the matter,” says Lamati.

I think those employees got a raw deal from the department and the fund

 ?? Picture: GALLO IMAGES ?? RIGHTS: Members of the National Union of Metalworke­rs of South Africa march for a wage increase in July last year in Cape Town
Picture: GALLO IMAGES RIGHTS: Members of the National Union of Metalworke­rs of South Africa march for a wage increase in July last year in Cape Town
 ?? Picture: ESA ALEXANDER ?? MONITOR: Thobile Lamati, director-general of the Department of Labour, blames lawyers for labour ills
Picture: ESA ALEXANDER MONITOR: Thobile Lamati, director-general of the Department of Labour, blames lawyers for labour ills

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