Labour on use of KBC certificates in Richards Bay

Exploitation of the unemployed in Richards Bay

6 February 2007

The Department of Labour condemns by all possible means the exploitation of
unemployed workers in the Richards Bay and surrounding areas.

The exploitation is being exacerbated by the issue of what is popularly
known as "KBC certificates" that are currently being used by certain labour
brokers and contractors after receiving lucrative contracts with major national
and international companies.

Recent investigations by the department revealed that a private company,
Kruger Bernade Consulting (Pty) Ltd, had been awarded a tender by Bayside and
Hillside Aluminium, Bell Equipment, Mondi Kraft, Richardsbay Coal Terminal,
Richardsbay Minerals and Ticor SA, to provide induction training on
occupational health and safety to workers of these contracting firms.

This tender further specifies that these workers of the already contracted
firms be certified medically fit to perform their duties by Kruger Bernade
Consulting (Pty) Ltd.

The cost of both the induction training and medical certificate is therefore
carried by the respective contracting firms as the employer, and not the
worker.

This initiative which is driven by a Steering Committee in Richards Bay
composed of representation from Bayside and Hillside Alluminium, Bell
Equipment, Mondi Kraft, Richardsbay Coal Terminal, Richards Bay Minerals and
Ticor SA, is aimed at ensuring a healthy and safe working environment.

Labour inspectors have however discovered that private individuals/job-
seekers were then allowed to join this programme at their own cost and when
successfully completed were issued with the so-called "KBC Certificate."

Unfortunately, labour brokers and contracting firms now utilise this
opportunity to their advantage by making the KBC Certificate a prerequisite for
employment. This more or less has become a "passport" to find a job in the area
if these big companies are targeted by the unemployed as a source of
employment. If the person is not in possession of a "KBC certificate," he or
she stands no chance of securing employment in the area!

To make matters worse, the unemployed work-seeker, if successfully placed is
never reimbursed as he should be - as the cost of this KBC Certificate is for
the employer.

Also, the KBC Certificate has an expiry period attached to it which means
that if a person is still unemployed with a lapsed KBC Certificate, it will not
be considered as "valid" by these labour brokers or contracting firms.

In terms of the Occupational Health and Safety Act, 1993, all employers are
expected to provide safety training to their workers.

The Department of Labour in collaboration with private companies in Richards
Bay area wishes to condemn those unscrupulous contractors/labour brokers who
continuously abuse this unintended consequence by getting the unemployed to pay
for their induction training and medical certificate which is in effect meant
for newly employed workers where such costs are fully paid for by the
respective employer.

Therefore, in a joint effort to stamp out this abuse and unethical practice,
the department together with the Steering Committee members has decided that
any contractor or labour broker found guilty of doing this will be accordingly
reported for black-listing in respect of future tenders to these companies.

This initiative by the Department of Labour promotes joint social
responsibility to alleviate the exploitation of unemployed job-seekers and has
resulted in the successful signing of a Memorandum of Understanding (MoU) by
the department and the respective businesses in Richards Bay.

The Labour Centre in Richards Bay will be conducting a surprise blitz
inspection to check compliance with the MoU soon.

Should you know about a contractor or labour broker that engages in this
practice or have been a victim to this abuse, please contact the Inspectors at
the Labour Centre Richards Bay on:

Tel: (035) 789 3760
Fax: (035) 789 3781
Physical Address: 11 Lira Link Road, Richards Bay.

Enquiries:
Zolisa Sigabi
Cell: 082 906 3878
E-mail: Zolisa.sigabi@labour.gov.za

Issued by: Department of Labour
6 February 2007

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