Problems relating to Trade and Investment on South Africa
16. Employment |
|||
Issue |
Issue details |
Requests |
Reference |
| (1) Delayed Work Visa Issue/ Renewal Procedure | - The internal transferees visa validity is for two-years. Moreover, GOSA has tightened its renewal examination since 2012. - Following the amendment of Immigration Law, MFS business is much affected by delays, dismissal by mistakes, non-reaction of Department of Home Affairs (DHA), concerning issuance, extension procedures of work visa. - Along with the Amended Immigration Law, MFS has suffered much inconvenience in business concerning issuance of work-visa issue, and its validity extension procedures due to the unfinished administrative process, reflecting the Law Amendment. - Since May 2014 Amendment of Immigration Law, it has become difficult to obtain work visa as scheduled, due to the frequent changes that have taken place in its implementation. In addition, on filing visa application, it is necessary to use a DHA authorised enterprise, which requires another agent for making appointments, necessitating both much cost and time. |
- It is requested that GOSA deregulates and streamlines visa renewal procedures especially for up to four-year renewal. - It is requested that GSA streamlines and expedites visa issuance procedures, and normalises the administrative procedures. - It is requested that DHA: -- optimises and expedites the visa acquisition process and -- normalises administrative procedures. - It is requested that GSA: -- optimises the work visa acquisition process and -- deregulates the requirements. |
- Immigration Act |
| (Info) - The validity of intra-company transferees' visa has been extended from 2-years to 4-years. |
|||
| (2) Irrational Employment Policy | - Member firm must have second thoughts when it knows the employment issues: complex laws (over-protection of workers' right), high wages (inflationary wages accompanying strikes), productivity (inability to adjust workforce commensurate with production volume), etc. in investing into South Africa. | - It is requested that GOSA improves the laws relative to the 3-labour related issues on the left column. As it stands, there has been no remark cable improvement on these issues because the administration, being supported by the trade union, drags its feet to convene meetings for exchange of dialogues between the administration and the business groups. | - Basic Conditions Employment Act 75 of 97 - Labor Relations Act 66 of 95 - Employment Equity Act 55 of 89 |
| (3) High Increase Rate of Personnel Cost | - Personnel cost increase is higher than the inflation rate. Along with the difficulty in dismissal, it has caused FFEs to think twice about increasing employment. | - It is requested that GSA takes step to hold the rising curve of personnel expenses no higher than the inflation rate. | |
| (4) Union's Walkout and Overbearing Wage Hike | - Multiple strikes halt production, while industrial union goes on strikes in every 3 years. MFS production is affected by the strike that occurs at some source of supply every year. Moreover, wage hike is so steep that is exceeds the managerial efforts to absorb increased production cost. |
- It is requested that GSA takes step to normalise the labour union activity. | - Labor Law |
| (5) BEE Policy Made More Stringent | - Black Economic Empowerment (BEE) policy is getting more stringent. (In order to promote effective participation of black people in society, and employment opportunities to black people with high unemployment rate, this policy affords incentives to enterprises that provide preferential treatment to black people in government procurement, etc. To score points get gradually stringent.) - Black Economic Empowerment (BEE) programme is stringent, forming a high hurdle for new entrants. In addition, it costs much to acquire the BEE score. Because of this, migration abroad of "useful whites" has advanced so that it is difficult to secure human resources locally, forming a reverse apartheid syndrome. - BEE Programme has gained its severity. While, based on the constitutional intent, the black peoples' rights for resumption of economic opportunities is appreciated, the recipients of the benefits under this policy are limited. It does not relate to correcting the differences. GSA's excessive involvement in capital ratio, operation, etc. could form FFEs' entry barriers, and expel FFEs' operation in SA. |
- While preclusion of enterprises from government procurement is inevitable, it is requested that GOSA refrains from establishing further penalty provisions in the code. - It is requested that GSA: -- deregulates the BEE programme and -- provides incentives to FFEs. - It may be difficult to relate these issues to amended policy/system, etc. However, it is appreciated if GSA arranges a forum to exchange dialogues including these issues/anxieties confronting FFEs. |
- 2013: Revised B-BBEE Codes of Good Practice |
| (6) Shortage of Human Resources | - It is difficult to employ quality human resources. | - It is requested that SGA upgrades the educational level in South Africa. | |
<<BACK |