COSATU welcomes the decision by the University of Cape Town to begin the process of in-sourcing all outsourced services

29 October 2015

The Congress of South African Trade Unions welcomes the decision taken by the University of Cape Town, to make a commitment to the principle of in-sourcing all outsourced services. The university announced that it will rollout a process to determine the modalities, framework and timeframes of the implementation of this decision, working with all stakeholders.

This is a step in the right direction and it needs to be applauded by all those, who are opposed to the exploitation of workers and serious about service delivery. It is also something that needs to be copied by other universities throughout the country.

The iniquitous crime of outsourcing and the use of exploitative labour brokers should be eliminated all across the sectors of the economy. Workers are not commodities to be hired out to profiteers, who are in search of maximum profits.

Most of these workers usually work with no benefits, they are earning poverty wages and do not have job security. They are bullied and intimidated against joining trade unions, therefore being denied their right to organise, bargain and strike.

The federation also rejects the argument that outsourcing helps to improve service delivery. Universities, government departments and health facilities that have used the practice of outsourcing will attest to the drop in the levels of service and efficiency, after outsourcing.

Before the introduction of the GEAR policy in 1996, capital was pressurising government to downsize and cut back on expenditure. This led to government outsourcing support services for profit. Before outsourcing took hold there would be porter services, in hospitals, to make sure that patients were taken care of and shifted around on beds and in wheel chairs, as and when needed. In many instances these responsibilities are now silently shifted onto nurses.

It is indisputable that outsourced security services leads to a less safe working environment. The contracted security companies want to maximise profits and this can only be achieved by cutting corners and cutting back on staff. The contracted security, will earn low wages and the staff will come and go; making the workers to have very little institutional knowledge or loyalty. This trend applies to all outsourced services. Outsourced cleaning, outsourced porter services, outsourced maintenance, outsourced pharmaceutical dispensing etc., all lead to less efficient services and these provide for inadequate working conditions.

This ultimately leads to a stressful working environment and demotivated staff, and on a number of levels contributes to poor service by professionals in government and private institutions. These factors, or the combination of these factors, all contribute to poor service delivery.

The good results of outsourcing are nothing but a myth that is encouraged by capital, to pressure government into allowing them to continue with the exploitation of workers.

We have noted the recent report by Deloitte South Africa that says that outsourcing is good for jobs in South Africa. We reject this as neoliberal propaganda that is meant to put pressure on decision makers, to maintain the status quo. South Africa has allowed outsourcing since 1996 and the question for Deloitte is; where are these jobs that were created as a result of outsourcing?

All that outsourcing has done has been the perpetuation of the apartheid starvation wages, that in the main affect the black working class. We are tired of poverty wages and near slavery working conditions in most of the sectors of the economy that use the practice of outsourcing. We want labour brokers banned now because we will not tolerate grotesque levels of inequality which have made us the most unequal society in the world

It is embarrassing that the University of Cape Town has led from the front, in taking steps to abolish outsourcing, while government institutions and departments still use this immoral practice. We call on government to in-source all of the outsourced services and also implement the ANC Mangaung resolution on outsourcing. We also call on all other universities to follow in the footsteps of UCT by doing away with the evil and immoral practice of outsourcing.

Statement issued by Sizwe Pamla (National Spokesperson), Cosatu, 29 October 2015