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Labour and human rights concerns persist, despite South Africa’s progressive constitution – Maplecroft briefing

11/08/2010

South Africa's constitution embodies many core labour rights and offers wide-ranging protection of civil and political rights. However, according to a new Maplecroft country risk briefing, reputational risks to business still exist if they do not take voluntary action to ensure rights are protected through their operation and supply chains. These include risks in respect of complicity in child labour, human trafficking and discrimination against unions.

Child labour is prohibited by law in South Africa - the minimum working age is 15. Whilst the government generally enforces child labour laws in the formal sectors of the economy, it is widespread in the informal and agricultural sectors. An official Labour Force Survey established that approximately 847,000 children between the ages of 10 and 17 were involved in child labour, whereas the South African government estimated the number at 1m.

Child labourers work illegally in commercial farms, the taxi industry or as domestic servants. Child labour has also become an issue within the gold mining industry, due to the prevalence of illegal mining operations, particularly in Berberton and Welkom. According to the Minister of Mineral Resources, Susan Shabangu, a host of labour abuses, including child labour and child prostitution, have increased around illicit mining areas.

Human trafficking is widespread in South Africa. The 2010 Trafficking in Persons Report classifies South Africa as a Tier 2 country because the government "does not fully comply" with the minimum standards for the elimination of trafficking. South Africa's vulnerability to trafficking partly derives from its geography and infrastructure.

Thousands of children are thought to be trafficked to, from and within South Africa each year. While exact figures are virtually non-existent, Children Now, an alliance of South African NGOs, estimates that up to 30,000 children are trafficked into South Africa from neighbouring countries annually. Men and boys are mostly trafficked into South Africa from Zimbabwe, Malawi, Mozambique and Mali to work as agricultural labourers, whilst women and girls are trafficked for commercial sexual exploitation, domestic service and other jobs in the service sector.

"Companies sourcing from South Africa need to be especially vigilant to ensure trafficked, child or bonded labourers are not used by suppliers. Monitoring of the supply chain is essential to avoid potential reputational and financial damage," stated Principal Analyst at Maplecroft, Anthony Skinner.

Anthony Skinner, Principal Analyst at Maplecroft

The high level of constitutional provision afforded to freedom of association and collective bargaining has translated into strong and active trade unions in South Africa. However, the country continues to witness discrimination against union members. It is not uncommon for police to use violence to disperse protestors during labour disputes. This was seen during the 2010 FIFA World Cup when protests over low pay by stadium stewards in Durban and Cape Town were broken up by police using tear gas and rubber bullets.

There are also tensions between unions and employers within the mining sector. In January 2010, the trade union United Association of South Africa (UASA) threatened to take legal action against Rand Uranium over its practice of banning miners from taking food and water into the mine. The company stated this policy was in place to prevent miners from feeding illegal workers, but the union branded it as "inhumane" and in violation of the constitution.

The persistence of labour disputes in South Africa potentially poses significant reputational risk for foreign investors. Companies which are supplied by other entities that do not respect collective bargaining and freedom of association may be seen to be complicit in the labour rights violations of their partners.

The Country Risk Briefing - South Africa includes detailed analysis of political, economic, business environment and human rights risks, stakeholder viewpoints and key recent events.

Buy the report - contact Maplecroft at info@maplecroft.com