FRIDAY, 3.30PM
THE Department of Labour says that before the contentious Basic Conditions of Employment Bill is passed, an investigation should be launched into whether it will indeed cause damage to small businesses.
The department was making a presentation to the parliament’s labour committee on Friday in response to submission from English, Afrikaans and African business groups, which all argued that the bill would raise the cost of labour, and therefore damage small businesses and increase unemployment.
The deputy director-general of labour, Les Kettledas, said the department was mindful of potential problems the Bill could create for small business, and had held talks with the department of trade and industry’s centre for small business promotion, who were prepared to conduct this investigation.
Kettledas rejected a call by the National African Federated Chambers of Commerce for a blanket exemption for micro enterprises and a five-year exemption for all small business.
Excluding employers who employed less than a certain number of workers had in the past led to abuses, such as companies dividing into two small companies owned by a husband and wife. In response to Cosatu’s objections to the 18 month exemption allowed to the public service, Kettledas said it would take time for the public service to re-organise because it had a far more cumbersome budget process than the private sector.