Heineken issue ferments: Labour-broking shows few signs of disappearing

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In 2017, a Heineken representative insisted that Heineken does not employ labour-broking companies but “third-party service providers”, who use labour brokers.

Martha Xakaza is a single mother born and raised in Soweto. She takes three taxis from her house in Vosloorus to get to work for her 12-hour shift, which starts either at dawn or at 6pm.

Ighsaan Schroeder, of the Casual Workers’ Advice Office , explained how this cost-cutting strategy works. On some occasions workers made as little as R24 for a 12-hour shift. This is because CJK paid “piece job” rates, which depends on the number of items of work completed. This means that the amount of money a worker makes depends on, for example, the number of crates there are to pack that day.

But she was referring to Heineken’s permanent employees and not necessarily the labour-broker workers, who are employed by other companies although they perform duties integral to the brewery’s production. The 2015 amendment to the Labour Relations Act granted new rights to labour-broker workers. Section 198A limits labour-broking contracts to three months, after which the law considers the worker a permanent employee of the client company. These workers are also supposed to be treated “not less favourably” than the client company’s longstanding permanent workers — meaning that they should earn the same wages and get the same benefits.

She said they are excluded from functions at the brewery and are told to stay at home without pay. “We are hurt by this,” she added. According to the CWAO, 29 former CJK workers have been dismissed in the month since this compromise was brokered, though LSC has denied this. “CJK is a typical labour broker. Imperial is still a labour broker, but it has benefits that it gives to workers at least. I’m not saying that it’s a better labour broker, I’m only saying that it’s better than CJK,” Masemola said.Heineken’s use of so-called third-party service providers complicates the terms of section 198A of the Act.

 

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