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The Misconception: Labour Broking Headache VS Mingling with Outsourcing

The outsourcing space has emerged as a sustainable stimulator in the creation of jobs for our youth. 48% of employed outsourced staff are aged between 26-30 and 43% are aged between 18-25.This is imperative especially for a country which is facing high unemployment rates amongst graduates and first time job seekers. A distinction must therefore be made between outsourcing and labour broking.

Labour broking

Labour broking is seen as the employment of a ‘casual workforce’ through the use of labour brokers.The problem with this practice is that ‘casual’ workers face discrimination and earn much lower salaries than permanent staff. These workers also hardly have any employee rights because they are easily replaced and the labour law excludes the broker and end user from legislative labour protection, this results in unfair treatment and dismals. It is in fact true to state that labour broking is important for the growth of SA’s economy and also that it accelerates the rate of employment. Labour broking contributes positively to the economy when companies use it for seasonal large scaling or when temporary staff is required. Additionally, it provides temporary financial support to the youth of today who have been placed in the poverty bracket.

Outsourcing

Outsourcing creates more fixed-term and permanent jobs for the South African economy. It is interesting to note that the service provider is held fully accountable for the labour legislations of the country they are outsourcing too. Because outsourced services require specialised skills, employees are not easily replaced thus increasing job security. The outsourcing sector is a prime contributor towards the creation of employment, particularly for the youth of SA i.e. In Cape Town the outsourcing space created 87% of jobs alone. Another example is the Monyetla’s Work Readiness Programme, an initiative developed by the Department of Trade and Industry aiming to train 18,000 youth and then place them in outsourcing jobs once training has been completed.

Negative connotations have been associated with outsourcing and labour broking, the issue is not the nature of this type of employment but rather the abuse which some organisations place their staff under. In fact these two improve the employability prospects for youth in a sustainable manner, if proper labour practices are in place. 60% of our youth are unemployed and these employment practices should be taken seriously in order to provide a sustainable employment solution for our youth. For more information on SA’s gripping outsourcing potential in the eradication of youth unemployment, read Misconception: Labour Broking Headache and Mingling with Outsourcing

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Deloitte South Africa

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