An analysis of temporary employment services within the information technology sector

M.Comm. (Business Management)Ever since the regime change within the ranks of the ruling party in South Africa, the African National Congress (ANC), there have been calls from the party’s alliance partners to ban labour brokers. This study was undertaken to investigate the perceived disadvantages for employees in the tripartite relationship between the employee, the labour broker and their client companies. The study also sought to establish whether, given a choice, the employees in these arrangements would still prefer employment in these labour broking relationships or rather in the standard forms of employment. Semi-structured interviews of respondents in these employment relationships were conducted to investigate and analyse the dynamics in the arrangement. Nine information technology (IT) employees working for a labour broker and placed in three of the major banks (First National Bank, ABSA and Standard Bank) took part in the study. Three subjects that serve as relationship managers represented the labour brokers that provide services to these banks. Three line managers managing employees placed by labour brokers on behalf of their respective banks (client companies). Metrics for the study were developed based on the International Labour Organisation (ILO) concept of decent work, the South African labour legislation in the form of the Basic Conditions of Employment Act (BCEA) as well as labour literature (‘bad jobs’ as defined by Kalleberg et al. (2000) and six dimensions of job satisfaction as per Ritter and Anker (2002)). Insecurity at work was found to be the leading factor indicating that employees in the tripartite relationship are not provided with decent jobs. This is one of the dimensions explicitly included by the ILO in their definition of decent jobs. Termination of employment in these working arrangements provides an indication of deviations from the provisions of the BCEA. It was also established that these employment relationships are characterised by lack of health and pension benefits and can as a result be categorised as providing ‘bad jobs’. This was also confirmed by the finding of lack of non-wage benefits as a factor leading to job dissatisfaction within the tripartite relationship. The study concludes that employees are indeed the ones who are disadvantaged in the tripartite relationship and, given a choice, most employees would prefer to work for the client company on a permanent basis due to the security as well as benefits provided or associated with the standard form of employment