Department of Employment and Labour inspectors in Gauteng left speechless after grim discovery of ‘horror factory’ and labour laws violation
A joint operation by the Department of Employment and Labour’s Inspection and Enforcement Services (IES) in Gauteng together with the South African Police Service (SAPS), and the Hawks Unit this week busted a Chinese factory involved in the trafficking of illegal immigrants and subjecting them to forced labour.
The joint operation was carried out on Tuesday (12 November 2019) at the premises of a company called Beautiful City (Pty) Ltd located at Village Deep in Johannesburg. Departmental inspectors found minor children who are alleged to be around the age of 15, and the employer was violating the suite of labour legislation ranging from National Minimum Wage, Occupational Health and Safety (OHS) Act and Basic Conditions of Employment Act.
In addition to breaking labour laws the employer was found to be in violation of South Africa’s immigration legislation, by-laws, health regulations, and engaging in child labour.
The joint operation found that Beautiful City (Pty) Ltd was employing 150 employees and 149 of them were illegal/undocumented foreigners. The employer is of Chinese origin and the company manufactures the inner cotton of blankets using recycled clothing, and its operations were carried out behind closed high steel gates.
Inspectors found that the NMW Act was not observed with estimated underpayments of about R6.3 million for the past 10 months.
The blitz inspection follows a tip-off made in August. The mole alleged that the Chinese employers were engaged in the trafficking of Malawian citizens. Information obtained by the Department was that the migrant workers were locked in a factory day and night; so much that these Malawian Citizens when they wanted to buy something they were expected to write it on a piece of paper for their bosses to buy it for them.
An inspectors report during blitz indicates that 78 employees were found on site as others ran for cover. Employees were found to be working under appalling conditions covered in fluff; were paid R65,00 per day (which amounts to R6,50 per hour); employees are alleged to work seven days a week and any request to go on leave they are informed to never come back, employees lived in the premises in uninhabitable conditions; employer failed to provide employees with information concerning remuneration, do not have contracts, the employer effected unlawful deductions from employees’ wages, employees worked excessive hours without being paid overtime and do not enjoy responsibility leave, sick leave and other forms of leave; there were violations of OHS (no ventilation, poor lighting, no medical surveillance, no risk assessment, un-serviced fire extinguishers and no protective clothing); and non-compliance to Unemployment Insurance Act.
It is alleged that one of the Malawian citizens in this company got injured and his hand was cut off by a machine. Instead of seeking medical help from a recognised public health facility, the Chinese employer brought in a Chinese doctor to the premises and refused to let the injured Malawian to go and seek medical help.
The employer has been arrested by the Hawks Unit and all the employees found on the promises were recorded and taken to place of safety, to allow further investigations.
The company has since been issued with a compliance notice for failing to pay the National Minimum Wage. The underpayments for the 78 employees found on the premises was estimated to be around R6,3-million and the employer has to pay the employees within 14 days on receipt of notice. The business was also issued with a prohibition notice by Department inspectors – which means that no persons would be allowed to gain entry into the business.
Department of Employment and Labour Gauteng Provincial Chief Inspector (PCI) Advocate Michael Msiza said the team of inspectors that went on the operation expressed shock and disgust at what they described as “the most grim site” they have ever come across.
Msiza condemned the atrocities meted out by unscrupulous employers on the poor and the vulnerable employees. He warned that the Department would not tolerate modern day slavery under its watch.
“Such barbaric acts have no place in our democratic state that upholds and promotes freedom, equality and human dignity. There is no human dignity in locking in employees and violating their rights in employment including a right to earn a minimum wage and to be covered regarding social security,” Msiza said.
Enquiries:
Advocate Michael Msiza - Provincial Chief Inspector (Gauteng Province)
Cell: 082 900 8131
