Report
of the Portfolio Committee on Labour on the Oversight Visit to the Fishing
Industry and Sheltered Employment Services in the
Introduction
The
Portfolio Committee undertook an oversight trip to
The Committee felt challenges during the visits due
to off-season non-activity within these factories, as workers were not on
premises at the time of the visit. As a result, factory owners together with
FAWU leadership had to make added efforts in convening workers in order to meet
with the committee. The second constraint was that, whereas the proposed
legislation will seek to address conditions facing workers at sea, the
committee only got an opportunity to speak with workers in the processing phase
who are already covered by labour legislation. Regardless of these challenges,
the meetings afforded the committee an understanding of the other side of the
industry.
The
current Bargaining Council’s scope only applies to seaward activities. On the landward side, the Industry and the
Food and Allied Workers Union (FAWU) are busy trying to agree on the terms for
the formation of the council devoted purely to fish processing. It has been unsuccessful until now. Nevertheless, factory workers still benefit
from long standing collective bargaining institutions. Industry members negotiate with FAWU even in
cases where the registered membership of that union falls below the legal
threshold for compulsory bargaining.
The
purpose of this paper is to consider issues that were raised during the
committee’s interaction with various industry stakeholders. In order to
objectively understand the industry and the conditions that workers operate
under.
Delegation
The
delegation of the committee consisted of Ms LE Yengeni, (ANC) (Chairperson and
leader of the delegation); Ms AN Mnisi (ANC); Ms LS Makhubela-Mashele (ANC); Mr
E Nyekemba (ANC); Mr I Ollis (DA) and Mr WM Madisha (COPE). Support staff:
Ajabulile Mtiya (Committee Secretary); Nozuko Mnyovu (Committee Assistant);
Sindisiwe Mkhize (Committee Researcher) and Shamielah Peer (Executive
Secretary).
A.
Present:
At
West Point Processors, the committee took a roundabout tour of the factory to
assess occupational health and safety matters and the general setup of the
factory. Due to the unavailability of fish at the time, the factory was
partially deserted as seasonal workers were also laid-off during this period.
Issues
Raised by
Issues
ranged from occupational health and safety, employment equity, general
conditions of work, Unemployment Insurance Fund (UIF), skills development, etc.
1. Seasonal
Workers’ Plight
1.1. The distinctive characteristic about the fishing industry is that the
entire operation is dependent on an uncertain supply of “raw material”, that is
fish. Owing to the nature of this industry and also due to quota limitations in
the fishing sector, workers are contracted for one year but only have work for
approximately six months of that year. This creates serious financial
constraints in that they have no income, which forces them to take loans from
employers.
1.2. Due to the contractual obligation for one year, workers are unable to
seek alternate employment to supplement for the temporal loss of income.
1.3. Due to the existent quota system within the industry, there has been an
increase in imports from the Asian countries such as
2.
Employment Equity
2.1. There were general concerns regarding the conscious efforts by management
to sideline Africans from progressing to middle and top management positions
within the company. Instead, there is a conspicuous preference of Coloured and
White workers over the former.
2.2. According to some workers, this obvious discriminatory practices also
filtered into vast wage gaps that are also structured according to racial
classification, disregarding skills and work experience
3.
Unemployment Insurance
Benefits
3.1. During the off-season period, workers do not have income nor
unemployment benefits as the employer does not issue UI-19 forms in order for
them to claim unemployment benefits.
3.2. As a result, they are obliged to take loans from the employer, further
indebting them and leaving them in an abject cycle of underemployment.
4.
Occupational Health and
Safety
4.1. Workers raised health and safety concerns relating to non-provision of
safety gear such as helmets, overalls, gloves, etc.
4.2. They referred to the accident that TOOK place few weeks earlier. On the day
of arrival, the committee heard that the worker was still in hospital. Until
the day before the committee’s visit, the workers had not received safety gear
from the employer.
4.3. There were persistent complaints about the unsafe conditions in the
“jetty area”. On an earlier site visit, management informed the committee that no
workers were in the “jetty” due to off-season shutdown. However, during the
proceedings, the workers informed the committee that the jetty area had been
cordoned off on the morning before the committee’s arrival due to obvious unsafe
and hazardous conditions.
4.4. A worker in the ice plant area complained of unbearable conditions in
the plant as well as continued expectation to attend to faulty electrical
issues though he is not a qualified electrician.
5.
Skills Development
5.1. Workers raised concerns that management had confiscated their
certificates, following completion of training programmes in order to prevent
them from seeking alternative employment elsewhere.
Management
Responses
1.
Health and Safety
1.1 In response to health and safety issues, company management informed the
committee that there is an established health and safety forum that attends to
all related issues.
1.2 The company contracted consultants to deal with matters of health and
safety.
1.3 Management denied allegations of not providing safety gear to workers.
2. Skills Development
2.1.
Management disputed accusations that they had confiscated training
certificates. However, their explanation was that, these were securely put away
in order safeguard them but are available upon request by workers.
Recommendation
from the Committee
The
Committee recommended that the employer should respond in writing to all issues
raised by workers, at least by the 22nd October 2010.
B.
Oceana Brands – 19th October
The
committee first met with the workers, followed by the meeting with management
to address all concerns raised by workers.
Present:
1. Seasonal Workers’ Plight
1.1
Similar
to issues raised by workers at West Point Processors, seasonal workers have
persistent challenges regarding underemployment and poverty as a result of
dwindling fish in the ocean.
1.2
As
a result, seasonal workers cannot afford sending their children to school.
1.3
Concerns
were raised that, the company, instead of using the laid-off seasonal workers
to perform other duties such as gardening, painting, it contracts external
companies.
2. Employment Equity
2.1
Workers
raised concerns that the company does not consider Africans for senior positions
or other benefits within the company.
2.2
Of
the 133 workers in the factory, 33 Africans are permanently employed.
2.3
Allegations of racism and nepotism were rife within
the company. There were claims that jobs had already been earmarked long before
candidates applied for the post.
2.4
All hard labour is assigned to African workers and
supervisory positions are allocated to Coloured workers.
2.5
The language barrier persists, as there is no
translator on site.
2.6
An advertisement was sent out for an
Afrikaans/Xhosa translator and to date this post remains vacant which causes
numerous challenges for workers who are not fluent in Afrikaans, for example, a
worker was forced to attend a disciplinary hearing which was conducted without
a Afrikaans/Xhosa translator
3. Conditions of Employment
3.1 Workers
complained of long hours’ work, 12 hour shifts and work during public holidays.
3.2 Whilst there is
a clinic on site, it is ill-equipped and there is no doctor.
3.3 Doctors
certificates or reports are not considered by the employer if the worker is
absent over weekends and monies are still deducted from wages.
3.4 Employees work ten hours a day but are paid for eight hours.
3.5 Unfair grading
system within the company. Whereas some employees have been promoted to
supervisors, their salaries remain unchanged.
3.6
There were general concerns regarding funeral
benefits and share schemes.
4. Occupational Health and Safety
4.1
Workers quoted scenarios where supervisors
instructed workers to work in areas demarcated as health hazards.
4.2
Employer was accused of not taking responsibility when
workers are injured on duty unless they lose their limbs.
4.3
When
employees are injured on duty they have to re-enact what actually transpired.
5.
Skills Development
5.1
Concerns were raised regarding discontinuity of the
employees’ families’ bursary support scheme through the company’s corporate
social investment arm, which supported children of staff members.
Management
Response
1.1
With regard to the translator, employees mentioned
that the post had been vacant for two years and this was due to difficulty in
finding suitable Afrikaans/Xhosa translator.
1.2
Regarding the share scheme, in 2006 the Kula Share
Trust was established and to date this has not been paid out. Kula owns 12.5%
of Oceana Brands. Approximately three months ago participatory rights were given
to shareholders.
1.3
Due to shortage of fish, the company has been
compelled to import fish from
1.4
On employment equity, management placed on record
that this issue had never been raised before. There is a committee that deals
with these issues and it has never been a concern for workers.
1.5
Skippers are contracted with Oceana Brands and crew
is also contracted by the skipper. They agreed that the majority of their
contracted skippers are white, 2 Coloureds
and no Africans.
1.6
They admitted that for gardening, painting and work
in the fish ice plant they recruit contractors that are BEE compliant. They got
in contractors instead of workers because they felt it would affect the duties
assigned to workers. In addition to that, the company has also outsourced the
loading of containers because workers previously refused to undertake this
task.
DAY 2: 19 OCTOBER 2010
A.
Marine Products
Issues raised by workers:
1.
Permanent-Seasonal Workers
1.1.
The general complaint emanating from workers was
that they could not take any other work during the off-peak periods when they
were not employed.
1.2.
Due to the nature of the industry the employers
resolved to grant loans during the off season but this perk is not extended to
persons on maternity leave.
2.
Employment Equity
2.1.
Whereas the Employment Equity policy is clear on
workplace transformation, the company’s top management remains white including
the workers on boats.
2.2.
Promotions are racially exclusive, with blacks not
considered for promotions.
2.3.
Official work forms are issued in only English and
Afrikaans, disadvantaging the Xhosa speakers and creating continued language
barriers amongst the groups.
3.
Basic Conditions of Employment
3.1.
Workers are
not given leave when requesting time off from work.
4.
Unemployment Insurance Fund
4.1.
The majority of employees complained of not getting
UIF payments during the off season.
4.2.
Death and funeral cover differed and took long to
pay out. Workers requested clarity on this from employers.
4.3.
In the event of death of a permanent worker, the
post is not filled even if there is work. As a result, remaining workers have
to carry over others’ workload without incentives.
4.4.
Concerns were raised regarding incompatible UIF payouts
between permanent and seasonal workers.
4.5.
In order to qualify for UIF, workers have to be
working for the company for four years. This exclude seasonal workers given
that they have only spent 18 months being physically on duty yet they have been
retained for for years.
5.
Occupational Health and Safety
5.1.
Workers, especially those in the fish mills unit, complained
of not having any safety gear.
5.2.
Workers are forced to work long hours. Upon
refusal, they are forced to sign warning letters.
5.3.
The employer is not consistent when applying
transfer policy, with white workers easily transferred to other units if they
contract illnesses.
6.
Skills Development
6.1.
Workers complained that it was only white workers
who benefit from skills development programmes.
Management Response
Employer
agreed to forward written responses on all issues raised by workers, by
Wednesday, 27 October 2010.
Visit to Oranje Vis
Concerns
raised by Workers
1. Permanent-Seasonal
Workers
1.1.
Workers complained of lengthened periods without
income.
1.2.
Workers sign contracts without being given proper
opportunity to read them.
1.3.
Concerns were raised that the company neglected
seasonal workers and did not offer any form of support during the off-season.
1.4.
Old seasonal workers continually have to train new recruits,
who in turn get promoted or get permanent positions whilst seasonal workers are
not recognised.
2.
Employment Equity
The
following issues were raised regarding employment equity:
2.1.
Adverts for drivers are placed with a prerequisite
that they have to have 15 years experience. This essentially bars Black people
from securing positions in this category as they would not have the required
15- year experience.
2.2.
Inconsistent payment system, with white workers
paid monthly on a fixed-term basis whereas black workers are paid weekly.
2.3.
There is no visible effort to empower the
previously disadvantaged groups. As such, upon resignations of white employees,
black workers are not trained for those positions, but the company would rather
hire another white person.
2.4.
Racist and disparaging references are used when
talking to staff members.
3.
Conditions of Employment
3.1.
The company deducts two days pay even if a doctor’s
certificate for being absent for one day is submitted.
4.
Occupational Health and Safety
4.1.
There is no proper ventilation in the canning
department with temperatures varying between very hot and cold.
5.
Skills Development
5.1.
The company does not recognize prior learning and
insists on people presenting certificates.
5.2.
Bursaries are not granted to black workers who wish
to study further whereas white workers are continually given opportunities and
financial support.
5.3.
Workers requested assistance from employers with
regard to their children’s schooling and nothing has been forthcoming to date.
Response by Management
Due
to the critical nature of allegations by workers, specifically with regard to
employment equity, demographics and racism, management agreed to respond in
writing by Wednesday, 27 October 2010.
Visit to Sea Harvest – 20th
October
Issues raised by workers
1.
Employment Equity
1.1.
Xhosa
speakers are not catered for within the factory, as a result they feel
marginalised and discriminated against.
1.2.
Official forms and advertisements are all in
Afrikaans and English.
1.3.
There is a general perception that line managers
undermine staff and there is a lack of respect for African workers in particular.
1.4.
There are wage disparities, with workers on the
same levels remunerated differently. African workers are paid R24 and Coloured
workers R38 per hour.
1.5.
White contractors are appointed without any proper qualifications
2.
Conditions of Employment
2.1.
One worker alleged that working at Sea Harvest was
akin to working on a farm with the pay rate at R22 per hour
2.2.
Workshop engineers do not get necessary
recognition; as they are still being paid at the rate of artisans.
2.3.
Production was cut in the added value department
and this resulted in the employers cutting the employees’ hours from 45hrs to
35hrs without communication or consultation.
2.4.
One fleet engineer complained that they are called
upon to attend to broken down machines and they are not remunerated for this.
They are expected to stay overnight without S&T benefits.
2.5.
When injured, fisherman are offered or transferred
to another post pending their disability.
2.6.
When matters of genuine concerns are raised, the
workers are summoned to appear before management and then interrogated and
victimized.
2.7.
Workers are meant to handle 12 tons of fish per day
but generally manage 15 to 17 tons per day. Whereas this benefits the company, workers
are not recognised for this. This equates to one and a half days work.
2.8.
Retirement benefits are inadequate
3.
Occupational Health and Safety
3.1.
Making appointments with the on-site nurse is
cumbersome.
3.2.
Temporary workers are not allowed to visit the
doctor on site.
3.3.
The working conditions on site are unbearable and
workers health deteriorates on site.
3.4.
On-site safety boxes are empty. As a result,
workers do not receive proper first aid attention when injured.
3.5.
Safety representatives are not adequately trained
to deal with injuries on site, as a result workers are not fully assisted
regarding health and safety issues. An example of this was given by a female
worker, when she injured herself and was bleeding profusely she had to attend
to herself.
3.6.
When workers are booked off to do only light duties
by a medical practitioner, management refuses to accept the doctor’s report and
requests a second opinion instead. The request to move to light duty is denied
as a result of this.
3.7.
The company only recognises medical certificates
issued by doctors from the surrounding area.
3.8.
Workers complained that certain areas in the
factory have temperatures reaching up to 54 degrees with no ventilation.
Response by Management
Due
to the critical nature of allegations by workers, specifically with regard to
employment equity, demographics and racism, management agreed to respond in
writing by Wednesday, 27 October 2010.
Sheltered
Employment Factories- 21st October
On
the 21st October, the committee continued with its oversight, this
time in the Department of Labour’s Sheltered Employment Factories. The
factories are situated in the Epping area. Similar to the other previous
factories, the committee met with both the workers and management separately.
A.
SEF Factory -
Issues
raised by Workers
1.
Conditions of Employment
1.1
Inaccessibility of the buildings to people with disabilities
1.2
Workers have to use public transport such as, metrorail that does not cater for
people with disabilities
2.
Occupational Health and
Safety
2.1 Workers’ health needs are not considered when placing, even when there
are doctor’s recommendations to remove employees. For example, workers with
asthma are placed in wood sanding department
4. Employment Equity
3.1 Exclusion of Xhosa speakers, as only Afrikaans and English are recognised
languages in the factory
3.2 Need for Xhosa and sign language translators
Management
Response
Management
agreed to respond in writing to the all allegations raised by workers.
B.
SEF Factory – Epping
Issues
raised by Workers
1.
Employment Equity
1.1. Continued segregation and discrimination against Africans, for an example
African worker uses a separate toilet from their white counterpart
1.2. counterparts in other provinces also experience similar treatment
1.3. the factories are untransformed with demographics favouring the white
workers
2.
Conditions of
Employment
2.1
Remuneration does not take into cognisance varied workloads that workers carry.
Such that, workers are paid uniformly though they perform distinct duties
2.2.
Management insist that workers produce medical certificates when on a day’s
sick leave and still deduct a day’s wage
2.3
No benefits extended to family members in the event of death of a worker
Management
Response
Management
requested to respond in writing with regard to all issues raised by workers.
General
Observations by the Committee
On Sheltered
Employment Factories
Conclusion
Some
progress has been made with regard to improving conditions of service and
employment equity. On paper, much progress has been made by these companies.
However, these targets have not permeated in the organisation cultures of these
factories. As a result, African workers perceive their workplaces as hostile
towards them, be it through mockery of one’s culture, language exclusion,
unwritten discriminatory wage practices, etc. Whatever progress has been made
in the industry has been undermined by these glaring challenges.
Recommendations
In
light of the issues that emanated during the oversight visit, the committee
recommends that;
·
The Department of Labour
should strengthen its Inspection and Enforcement Services in order to oversee
enforcement compliance of occupation health and safety regulations within the
fishing sector
·
The Department of Labour
should ensure full compliance with regard to Employment Equity regulations
·
The Department should monitor implementation
of the Sheltered Employment Factories’ turnaround strategy. Additionally, the
department should ensure that the factories adhere to employment equity
regulations, as stipulated in the relevant Act
·
The Department should
investigate the amendments to the Unemployment Insurance Fund (UIF) Act to
cater for seasonal workers both in the fishing and farming sectors
·
The Department should
respond to all issues raised in this report during the first quarter of 2011
Report to be considered