Everyone has recently been made aware of the constitutional courts ruling on labour broking. This ruling was meant to allow workers equal pay and benefits. However it seems like the negative effects of the labour broking ruling has already started.
After the ruling workers pay doubled, they received medical aid and a provident fund. Once they received this small bit of hope not too long after they unfortunately received retrenchment letters.
Employees placed by Adcorp (labour broker) lost their jobs at Kellogg’s at their Ekurhuleni factory. The same incident took place at Simba’s factory where workers were placed only to later lose their jobs.
116 people were taken on by Kellogg’s when the ruling was made, their monthly pay went from R3500 a month to R5950 a month but unfortunately 57 people lost their jobs due to the company wanting to keep making profits after increasing employees pay.
This problem could happen to more workers that were placed despite receiving hope after the court ruling. This problem could soon spread to other big companies such as Clicks and Heineken to name a few.
Accountants we previously interviewed may have seen this coming and stated that this would not be good in the long run. However no one expected it this issue to unravel this soon into implementation.
It seems that the court ruling has caused more problems than resolving problems, despite workers receiving low pay, they still received something. With companies retrenching some people in order to afford to pay employees more, some people are left jobless and may have been better off before.