The impact of changes in labour broking on an integrated petroleum and chemical company.

Abstract

Orientation: This article focuses on the changes to section 198 of the Labour Relations Act (LRA).

Research purpose: The purpose of this study was to explore the perceptions of employees regarding the changes to section 198 and the potential implications of these changes for the company and its employees. Motivation for the study: The changes to section 198 of the LRA are new and the impact of the changes to a company and its employees is still unclear.

Research design, approach and method: The qualitative exploratory study was conducted with six employees of a large integrated petroleum and chemical company making use of labour brokers, until data saturation was reached. The data were collected by means of individual interviews and telephonic interviews.

Main findings: The results indicated that the changes to section 198 have positive and negative implications for the organisation as well as its employees. The negative implications for the organisation are higher costs, new policies and guidelines, and less employment flexibility. The negative implications for the employees are unemployment, negative attitudes, poor employability, and a situation where the permanent employees have to do all the work.

Practical / managerial implications: The outcome of the study can be used to develop an employment policy and dispute resolution to minimise the negative implications for the organisation and its employees.

Contribution / value-add: The study represents original research, extending the current body of knowledge on the perceptions of employees in the human resources department regarding the changes to section 198 of the LRA.