LABOUR DISPUTE

Labour demands spark tensions as Western Cape government responds

2 min read
Labour and Civic Organisation (LACO) members, Operation Dudula, and March and March protesting outside of the provincial legislature building, in Wale Street, Cape Town, on Tuesday, June 30, coinciding with a national shutdown threat.
Labour and Civic Organisation (LACO) members, Operation Dudula, and March and March protesting outside of the provincial legislature building, in Wale Street, Cape Town, on Tuesday, June 30, coinciding with a national shutdown threat.Picture: Fouzia vand der Fort

The Western Cape Government and Labour and Civic Organisation (LACO) have reached a stalemate regarding the province's labour landscape.

LACO, Operation Dudula, and March and March protested outside the provincial legislature building in Wale Street, Cape Town, on Tuesday, June 30, as part of a demonstration that coincided with a threatened national shutdown.

Following a memorandum submitted by LACO on June 11, which demanded urgent intervention into labour exploitation and the employment of foreign nationals, the provincial government has issued an official response.

Labour and Civic Organisation (LACO) leader Sapho Mahilili outside the provincial legislature building, in Wale Street, Cape Town, on Tuesday, June 30.
Labour and Civic Organisation (LACO) leader Sapho Mahilili outside the provincial legislature building, in Wale Street, Cape Town, on Tuesday, June 30.Picture: Fouzia van der Fort

LACO’s memorandum targeted a wide range of sectors - from farming in Grabouw and Ceres to security firms like Distinctive Choice Security, accusing companies of the systematic exclusion of South African citizens. 

The group vowed to spearhead a campaign of "identifying and exposing" companies they allege prioritise foreign labour for lower wages. 

Their demands included the strict regulation of foreign street vendors, the replacement of foreign management in TVET colleges, and the reservation of truck driving roles specifically for locals. The group also threatened mass mobilisation against companies they deem non-compliant.

In a formal response on Tuesday, June 30, provincial legislature director-general Dr Harry Malila acknowledged the memorandum, emphasising the government's value for open stakeholder engagement. He clarified a significant jurisdictional barrier: “the provincial government lacks the legal mandate to dictate private sector hiring practices or intervene in individual employment disputes”.

“Matters relating to employment contracts, deductions, union membership, and compliance with labour legislation fall under the jurisdiction of the national Department of Employment and Labour and the CCMA,” said Malila.

A police officer engaging with members of the Labour and Civic Organisation (LACO), Operation Dudula, and March and March.
A police officer engaging with members of the Labour and Civic Organisation (LACO), Operation Dudula, and March and March. Picture: Fouzia vand der Fort

He advised LACO to engage these national institutions directly, noting they hold the exclusive legal authority to investigate and enforce labour laws.

Regarding the unsolicited curriculum vitae submitted by LACO as part of their campaign, the government confirmed it would not be accepting them. Malila reiterated that public sector recruitment strictly adheres to the Public Service Act and formal, transparent processes. He returned the 150 CVs of unemployed South Africans.

Malila said that the government was committed to economic stability. The province urged the organisation to utilise official job-matching platforms and existing skills development programmes to assist unemployed residents.

Malila concluded by encouraging "continued, lawful dialogue" to foster inclusive economic opportunities. Sapho Mahilili, from LACO, encouraged protesters to mobilise and remain law-abiding citizens.

He highlighted the growing economic pressure in the region and the complexities of navigating labour rights between private industry, national oversight, and provincial administration.