Proposals affecting rights of workers and their employers are sparking hot debate in the national small business space this week — and many in BCM can see both sides.
About 40 trade unions, think tanks, NPOs and human rights groups protested outside the National Economic Development and Labour Council (Nedlac) in Johannesburg on Tuesday, calling for proposed amendments to SA’s labour laws to be scrapped.
The bills — a result of discussions between the state, business, labour and community constituencies at Nedlac — propose 47 amendments to the Labour Relations Act (LRA); 13 to the Basic Conditions of Employment Act; two to the National Minimum Wage Act and three changes to the Employment Equity Act.
The protesters, including the SA Federation of Trade Unions (Saftu), argue the amendments will bring back “apartheid-style dismissals” where bosses can call workers into their offices and dismissed them on the spot, “without any procedurally fair disciplinary hearings taking place”.
“Our main objection to the proposals is that they will end formal disciplinary hearings.
"Workers accused of [wrongdoing] won’t have a chance to defend themselves, nor call their union, nor call witnesses nor cross-examine company witnesses.
"Bosses can merely have a conversation with the worker before firing them,” the organisations said.
“Small businesses will be able to fire workers without even having a conversation. Workers on probation can be fired in the first three months with no conversation."
The organisations fear many companies will downsize and outsource to bring their staff complement below 50, which would free employers of minimum wage and working condition obligations established by bargaining councils.
Luvo Grey, who started up a thriving little ISP in East London called EC Internet, and is a national activist for emerging black digital firms, said he understands the concerns about workers’ rights.
"However, it’s also important to acknowledge the very real constraints that small businesses operate under, especially in high-growth but cash-constrained industries like ICT.
"The current labour regime, while vital for justice, can be complex and overly burdensome for small employers who don’t have dedicated HR and legal departments.
"That said, I do not support the complete erosion of due process or fair treatment.
"Dignity and employment justice must remain non-negotiable.
"If the intention of the draft code is to simplify and speed up internal processes without trampling on basic labour rights, then there is room for balance.
"If the amendments are used to bypass fairness, they will do more harm than good, particularly to vulnerable workers such as young people and women, whom we are all trying to empower.
"A thriving economy requires both healthy businesses and protected workers. We should push for reforms that maintain both the dignity of workers and the operational realities of small enterprises."
Award-winning East London analyst and MD of Yam Business Solutions Yamkela Nkomo could also see both sides.
"All businesses, small and big, work because of built relationships between the employer and employees.
"The proposed amendments represent a high-stakes balancing act between economic efficiency and worker protection.
"The draft code recognises a real issue: small businesses cannot afford long disciplinary hearings.
"However, the current approach risks swinging the pendulum too far.
"Procedural fairness is not red tape — it is the minimum standard for protecting vulnerable workers.
"These reforms could undermine trust between employer and employee, especially in already low-trust environments like informal and township economies.
"Yes, reforms are needed to help SMEs grow — but not ones that revive “apartheid-style dismissals”. Our challenges are complex. We need solutions that protect dignity, enable efficiency and supports small businesses, especially in underserved communities."
Dispatch columnist Jonathan Goldberg, who chairs East London labour law consulting firm Global Business Solutions, pointed out that the same unions involved in the demonstrations have been part of the broader consultation process all along.
"This process has spanned nearly three years of discussions between all relevant parties and will continue through the standard parliamentary procedure, which includes publication of the Bills for public comment," he said.
"There is a clear need to reform employment equity legislation — both to encourage job creation and to retain existing employment.
"But from my reading of the Bill summaries, there is nothing that drastically undermines labour rights. In fact, there are several provisions that aim to improve labour market efficiency, ultimately benefiting employees by streamlining how disputes are processed.
If SA is to progress, certain changes must be made — and made swiftly. Without reform, we risk continued job losses in an already challenging and evolving environment."
The reforms have some way to travel before they become law. After they are vetted by the State Law Advisor, they must make their way through the parliamentary process, where "opportunities will arise for public comment," says the Labour Guide SA website.
Affecting small employers, the draft code pertains to dismissals linked to poor performance, misconduct, participation in unprotected strikes and operational requirements.
“The key principle in this code is that employers and employees should treat one another with mutual respect. This code places a premium on employment justice, the efficient operation of an employer’s business and the expeditious resolution of disputes,” the code states.
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