Adcorp report reveals full extent of casualisation
The headlines on media reports of the release of Adcorp Holdings monthly employment index for March 2011 suggested that at last we have some good news about jobs, reporting their claim that total employment grew 5,6% last month, the highest in one month for more than two-and-a-half years.
According to Adcorp CEO, Richard Pike, "all sectors, occupations and employment types recorded positive growth."
However the report, published by this ‘staffing and outsourcing' (read ‘labour broking') group, contained evidence which confirms COSATU's worst fears about the nature of jobs in South Africa (see here).
It revealed that "since January 2000, traditional permanent employment declined by 20, 9% and temporary, contract and other forms of ‘atypical' employment increased by 64, 1%. Respectively, these percentages translate to 1, 9 million and 2.4 million people."
This suggests that far from exaggerating the extent of the casualisation of labour, COSATU has been underestimating the rate at which firms in South Africa have been converting from full-time and permanent employment to contract and part-time employment.
The trend began long before the onset of the crisis in 2009 and the tide towards casual employment is still rising. This relentless quest to minimise labour-associated costs undermines the government's and ANC's commitments to advance the decent work agenda workers.
Adcorp's figures shatter the popular myth that South Africa's labour market is inflexible. How can be there rigidity, when atypical jobs have risen by 64.1% and permanent ones declined by 20.9% in a decade?
It contradicts the argument of the Global Competitiveness Report 2010-2011, to the World Economic Forum, that among the most problematic factors for those doing business in South Africa is restrictive labour regulations is one, for which they rank South Africa 13th from a list of 15.
While technological developments necessitate and prompt work changes in the labour market, excessive labour market deregulation and pressures from increased global competition have encouraged employers to engage in a "race to the bottom", through the replacement of direct employment with insecure informal, casual and contract type of work arrangement, with the effect of infringing workers rights and the pervasive erosion of basic labour standards.
In an attempt to mitigate the detrimental effects of these new developments, the International Labour Organisation has ratified and tried to enforce international labour conventions, so as to abate the surge of unfair labour practices and foster decent work.
The decent work agenda aims to improve on the quality of employment by ensuring compliance with provisions of labour legislation, extension of full employment benefits to all workers and in which all employers respect and accord every worker - part-time or full-time- the fringe benefits they are entitled to.
In the current South African employment context however there are many workers, even among those who are fully employed, in unacceptable jobs - often in appalling working conditions, in low productivity-low wage occupations. For part-time and temporary workers the situation is even worse.
This report makes the case for the banning of labour brokers - like Adcorp - even stronger. It will make COSATU members even more determined to struggle against casualisation, for the enforcement of existing labour legislation and for new legislation where necessary to put a stop to the super-exploitation, abuse and degradation of workers.
Statement issued by Patrick Craven, COSATU national spokesperson, April 14 2011
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