Business Day (Johannesburg)

South Africa: New Study Highlights Mines' Use of Subcontracted Labour

Luphert Chilwane

19 November 2008


Johannesburg — RESEARCH findings by the sociology of work unit of the University of the Witwatersrand (Wits) revealed yesterday that more than 60% of platinum mines in the Rustenburg area employed subcontracted mineworkers to avoid direct accountability in cases of accidents and death.

The study, which was commissioned by the labour department, showed the trend of subcontracting workers was growing alarmingly within the mining sector.

Prof Edward Webster said the purpose of the study was to help the department develop appropriate labour market policies, to determine whether the data on the informal economy correctly captured the level of informal employment, and to develop a framework for reducing the decent work deficits in informal employment.

He said Labour Force Surveys by Statistics SA were unable to measure the size and nature of informal employment.

"It is necessary to re-conceptualise the informal economy from its origins three decades ago as a description of the urban poor in developing countries, to a recognition that informality does not exist in small, unregistered enterprises, but is increasingly found inside formal enterprises through the rapid growth of casual and subcontracted work".

The report recognised that SA has two economies -- a first economy of modern establishment and decent work, and a second economy consisting of a range of precarious and vulnerable forms of work, he said.

Asanda Benya, a Wits master's student who presented the findings, said 36% of platinum mines around the country have resorted to subcontracted workers, mainly from foreign countries such as Mozambique and Lesotho.

This is encouraged by accident liability implications, as there would be less direct responsibilit y or accountability by the mining sector if the subcontracted workers were injured.

She said the employment informality within the formal mining sector increased from 90231 jobs in 2003 to 122589 in 2005.

Benya said subcontracted workers, compared to full-time workers, were forced to work under dangerous conditions without protective clothing.

"Nobody knows how much they are earning because their wages are inconsistent, (it) changes every month", she added.

The findings further revealed that informal workers in the mining sector were vulnerable because there were no independent unions representing them. They were continually threatened with dismissal if found belonging to certain labour unions.

Les Kettledas, acting director-general in the labour department, said the findings were a reflection of reality in the formal sectors.

He said his department would use the findings to advance continuing discussions around the issues of labour.

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