CHAPTER 4 THE CONSTRAINTS FACED BY SUBCONTRACTORS •••••••• 61
5.2 POLICY GUIDELINES AND ISSUES FOR FUTURE RESEARCH
5.2.5 Conclusion
In conclusion, i t is important to stress that the above policy proposals are interrelated and should be pursued within a coherent macro-economic development strategy. such a strategy falls outside the scope of this dissertation, but should receive priority in future research.
78
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LI.ST OF INTERVIEWS 1 Mr. Van der Westhuizen
2 Mr. Schreuder 3 Mr. W. de Villiers 4 Mr. B. Pillar
5 Mr. Van Wyk
6 Mr. D. Hinds
7 Mr. Cornish
8 Mr. K. Marsden 9 Mr. J. Snyman
10 Mr. B. smith 11 Mr. A. de Villiers
12 Mr. K. Cattel
13 Mr. T Lochner
contracts manager at Goldbell site, Blue Downs. 21.2.89.
Owner, Peninsula Building Projects. 27.2.89
Owner, Amakaya Construction.
15.3.81.
contracts manager at L.T.A.
site, Blue Downs. 23.2.89 and 4.3.89.
contracts manager at Bester- Rekter site, Blue Downs.
23.2.89.
contracts manager at Schachat Construction site, Blue Downs.
2.3.89.
Director of Erhart Bros.
Painting.
9.3.89.
Director of C.I.W. Plumbing:
10.3.89.
Medium Term Forecasters, Stellenbosch. 1.4.89 and 25.10.89 (telephonic contact only) .
Chief Estimator at OVKON Construction. 10.8.89.
Industrial Relations Manager at BIFSA. 12.7.89 (telephonic contact only).
Lecturer at Department of Construction Economics and Building Management, University of Cape Town. 21.6.87.
Manager Small-Builders Bridging Fund at the Small Business Development Corporation, Cape Town. 30 . 6 • 89 .
14 Mr. D. Ackerman
15 Mr. J.J. Kitsoff
16 Mr. W. Thomas
90
South African Housing Trust.
25.10.89 (telephonic contact only) .
Chairman Building Industrial Council (Western Province).
28.9.89 (telephonic contact only) .
Regional General Manager at the Small Business Development corporation, Cape Town.
20.11.89.
A P P E N D I
x A
THE INDUSTRIAL COUNCIL SYSTEM AND THE AGREEMENT FOR THE CAPE PENINSULA BUILDING INDUSTRYA.1 THE INDUSTRIAL COUNCIL SYSTEM
The Labour Relations Act (1954) makes provision for the formation and registration of Industrial Councils. An lndustrial Council is a permanent body consisting of an equal proportion of employer and employee representatives. "Employer and employee groupings who are party to the Council use the forum to meet, negotiate and formulate agreements on matters of mutual interest. Parties to the Council negotiate their own constitution for the proposed Council and submit i t to the Registrar to fulfill the
requirements for registration.
The primary duties of the Industrial Council, as stipulated in section 23 of the Act, are to maintain sound labour relations through the creation of procedures for the settlement of
disputes; and to regulate matters of mutual interest to employers and employees in the industry.
Procedures for resolving labour relations disputes are written into the Industrial Council agreement and usually specify a number of meetings between the parties concerned, with the option of arbitration. No legal strike or lockout may take place in an industry or area where the Industrial Council has jurisdiction until these procedures have been followed.
section 24(i) of the Labour Relations Act lists each of the matters of mutual interest that may be dealt with in an agreement. These include: minimum wages payable to particular categories of employees; regulations governing overtime; closed shop provisions, and the establishment of holiday, madical, death and training funds for employees.
The agreement is automatically binding on the parties to the Council. The Minister of Manpower may, however, extend the scope of the agreement to cover all employers and employees in a
defined area and industry, whether these individuals are. party to the councilor not.
Finally, section 53 of the Act states that any person who contravenes or fails to comply with the provisions of the
agreement is guilty of a criminal offence. It is the duty of the Industrial Council to ensure that all parties over whom i t has
jurisdiction comply with the provisions of the agreement. If necessary the Minister of Manpower may appoint an official to police the agreement.
A.2 THE INDUSTRIAL COUNCIL FOR THE WESTERN PROVINCE The Industrial Council for the western Province administers three
agreements: those for the Cape Peninsula, the Boland, and the ~
Medical Aid Fund. The housing schemes considered in our case study fall within the jurisdiction of the agreement for the Cape Peninsula. In terms of this agreement, the Council has
jurisdiction over the following Magisterial Districts: Cape, Belville, Goodwood, Kuils River, Malmesbury, Simonstown, Somerset West, Stellenbosch and Wynberg.
The agreement, relevant during the research period that this case study was undertaken, was binding from 1 May 1985 to 31 March 1989. The full text of the agreement appeared in the Government Gazette on 19 April 1985 (Vol. 238, No.9704).
The agreement was entered into between, on the one hand, the Master Builders' and Allied Trades' Association (Cape Peninsula) and the Master Masons' and Quarry Owners' Association (South Africa), representing its members in the Monumental Masonry Industry ("the employers"), and on the other hand the Amalgamated society of Woodworkers in South Africa, the Amalgamated Union of Building Trade Workers of South Africa, the South African
Operative Masons' Society, the South African Woodworkers' Union and the Building Workers' Union ("the trade unions").
By virtue of section 48 of the Act, the minister has declared the agreement binding on all employees for whom wages are prescribed in the text, and the employers of such employees who are engaged in the building industry.
A.3 THE CAPE PENINSULA AGREEMENT
The following discussion of the agreement for the Cape Peninsula is limited to those areas which have a direct bearing on this dissertation.
A.3.1 Registration
In order to operate legally in the building industry a firm must register with the. Industrial Council within one week of
commencing operations (clause 4(1)). In order to register with the Industrial Council, however, the employer must first register with the Unemployment Insurance Commissioner, Workmens'
92
Compensation commissioner and the Receiver"of Revenue (clause 4 (b) (5».
It is a statutory offence for a firm which is not registered to operate in the industry or for a contractor to engage a
subcontractor who is not registered. In the case of labour- only contracts, the onus is on the contractor to ensure that the subcontractor is registered (clause 11(b».
On registration, the employer must lodge a deposit with the Industrial Council to cover liabilities in the event of insolvency. The deposit must be sufficient to cover two weeks' statutory minimum wages for each employee and the employers' contribution to Industrial Council levies and Medical Aid Fund
(clause 4(7) (a». The amount cif the deposit must be greater than R500, but need not exceed R10 000 (clause 4(7) (b».
A.3.2 Minimum Basic Wages
Minimum basic wages, payable to each category of employee, are specified in clause 16 of the agreement. These minimum wages are revised periodically during the period in which the agreement is binding.
As of 31/10/88, minimum basic wages per hour in the Cape
Peninsula are as follows: foreman 7.02, artisan R6.31, blocklayer R4.79, labourer R2.58 and cleaner R1.89.
A.3.3 Industrial Council Stamps
In addition to the basic minimum wage, employers are liable for weekly contributions in respect of the holiday, leave, pension, sick and death benefit funds for employees (clauses 28, 29, 30 and 31) and for the running expenses of the Industrial Council and the Building Industry Training Fund. The amount payable in respect of these funds is revised periodically during the period in which the agreement is binding.
Payments in respect of these contributions are made, one week in advance for each worker, to the local office of the Industrial Council. On receipt of the payments, the Industrial Council issues stamps to each employer, to the value of the dues payable according to the agreement. These st'amps are then issued to the workers who place them in a contribution booklet, which remains Industrial council property. At the end of every year these booklets are handed in to the Industrial council, which enables the council to calculate the amount of holiday pay each worker ought to receive. The booklets also enable the council to
determine the extent to which workers are eligible for pay~ents
from the other funds to which employers contribute.
As of 31/10/88, the total employers' weekly contribution to the various funds in respect of each employee is as follows: foreman R79.94, artisan R72.74, blocklayer R47.25, labou.r.er R27.25 and cleaner R20.05
A.3.4 Prohibited Employment Practices
Clause 10 of the Industrial council agreement prohibits unskilled labour from performing skilled work. The clause states that: "No employer, or employee employed in a supervisory capacity by an employer, shall instruct, require or permit any person, other than a registered artisan, apprentice or learner, to perform skilled work, and that no employee, other than those referred to, shall perform skilled work in ~he industry".
Skilled work itself is defined in the agreement as: "Work of a skilled nature which is normally and customarily performed by a person who has served a contract of apprenticeship or a period of training ... " (clause 3). This is followed by a delineation of those activities in each trade which may be performed by a skilled worker only.n
72. The concept of prohibited employment was not new in 1985 but had been included in the 1980 agreement, albeit with greater flexibility. The 1980 agreement included 12 categories of semi-skilled workers. The operations that they were permilted to perform were contained separately in clause three. These semi-skilled workers were also referred to under the agreements clause 19, which covered prohibited employment. Along with artisans, apprentices and learners they were permitted to perform skilled work if it W£lS in accordance with the activities covered under their definition (Government Gazette, No.7100, Vo1.180, 1980).
94
y ,