Outlawing labour brokers will swell informal economy

Outlawing labour brokers will swell informal economy
September 7, 2009

The sentiments conveyed by Samantha Enslin-Payne in Business Watch (Business Report, September 4) are absolutely correct. The workers in the informal economy are always those that bear the brunt during a downturn or strike season.

A sure way to boost the numbers of those participating in the informal economy is to outlaw the labour broking industry.

It appears, from the news received from Namibia, that because the labour broking industry has been outlawed, informal workers have become the order of the day.

It is this informal economy, which is both uncontrolled and exploited, that we need to target. Cosatu and many of the other trade union bodies are ignoring this area but have spent enormous resources targeting legitimate businesses, such as labour brokers. The labour brokers have very carefully ensured that the workers are properly paid, properly registered and properly treated. In exchange for this careful and legal treatment we note the abuse.

It would be far easier for employers to hide under the radar and expand the informal economy. This must be carefully monitored. We don't seem to understand that by focusing only on the formal economy we are failing a large percentage of our workforce.

Michael Bagraim

HIghlands Estate, Cape Town